AZA Ltd is considering the purchase of a machine for R2 750 000, which would be sold after seven years for an estimated realisable value of R1 200 000. By this time capital allowances of R2 150 000 would have been claimed. The rate of corporation tax is 28%. Required What will be the tax payment on the balancing charge at the end of the five years?   a. R182 000   b. R322 000   c. R168 000   d. R84 000

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.