Question 1 Marko Polo Ltd is an importer of stationery, the business sells these items to a wholesaler for cash and to its retailers using the terms of an instalment credit agreement. The instalment...

Extracted text: Question 1 Marko Polo Ltd is an importer of stationery, the business sells these items to a wholesaler for cash and to its retailers using the terms of an instalment credit agreement. The instalment credit agreement makes provision for the payment of a 25% deposit and the balance, which is inclusive of finance charges, over an 18-month period. The following financial information relates to the company's debtors with regard to their instalment agreements Current Previous year year Debtors' balances at 28/29 February - sales (excluding finance charges 320 000 360 000 Doubtful debts (included in the above amounts) debtors (excluding finance charges) 80 000 40 000 finance charges accrued in terms of section24J 64 000 32 000 40% 40% Gross profit percentage The companys taxable income for the previous year of assessment R124 000 The companys taxable income for the current year of assessment R318 000 These amounts are prior to takong into account any of the adjustments made in respect of debtors You are required to calculate Marko Polo Ltd.'s taxable income for the previous and current years of assessment.