Conrad Brown is $40$ years old. He is a livestock farmer in the Free State. During the $2023$ year of assessment, he

established a cherry tree orchard on his farm. His receipts and accruals for the year of assessment follow:

R

INCOME

Sales of livestock $2026900$

Rentals earned $($note $6)96000$

Irrigation equipment sold $($note $1)9800$

EXPENDITURE

He incurred the following expenses during the $2023$ year of assessment:

Lucerne and fodder $24500$

Dipping tanks constructed $55000$

Planting of cherry trees $32500$

Clearing of land to plant cherry trees $15000$

Interest incurred on a loan, the proceeds of which were used for farming purposes $12600$

Salaries of farm employees $696800$

Livestock purchased $900000$

Erection of a barn $($a farm building$)25000$

Eradication of noxious plants $12000$

Deductible non$-$capital expenses $290500$

Note:

$1.$ Irrigation equipment was purchased eight years ago for R$8000($excluding VAT$).$ It was sold on $1$ June $2022$ for R$9800$

$($excluding VAT$).$

$2.$Conrad$$s capital development expenditure brought forward from the $2022$ year of assessment was R$15000.$

$3.$ Conrad purchased a tractor on $1$ May $2021$ for R$130000($excluding VAT$).$

$4.$ Conrad had $2000$ livestock on hand on $28$ February $2022.$ On $28$ February $2023,1400$ livestock were on hand. The

livestock on hand had a cost price of R$6800$ each and a standard value of R$40$ each.

$5.$ Conrad erected a house for his farm manager. The house was complete on $31$ May $2022.$ The manager occupied it as

from $1$ June $2022.$ The house cost R$345000.$ In the $2015,2016$ year of assessment, Conrad had erected six houses for

his employees.

$6.$ Conrad lets a portion of his farm that is unsuitable for farming. The lessee uses this land for a dog$-$kennel business.

YOU ARE REQUIRED TO calculate Conrad$$s normal tax liability for the $2023$ year of assessment.