QUESTION $1(12$ marks, $14$ minutes$)$

Mr Xhumalo lives in Gqeberha, South Africa. He manufactures and sells various grass baskets and placemats from a street stall. Due to the high demand for his products, he concluded a sales agreement with a wellknown houseware retailer in South Africa. In terms of the agreement, the retailer will purchase R$25000$ worth of products from Mr Xhumalo on $15$ February $2025$ on credit. The goods must be manufactured and delivered by $15$ March $2025,$ with payment scheduled for $31$ March $2025.$ The agreement clearly states that Mr Xhumalo will only become entitled to payment once he has delivered the goods.

Mr Xhumalo's accountant is uncertain in which year of assessment the R$25000$ must be declared for tax purposes and contacted you for advice.

$\backslash$table$[[$REQUIRED$,$MARKS$],[\backslash$table$[[$Discuss whether the R$25000$ of the sale will constitute gross income in the hands of$],[$Mr Xhumalo for the $2025$ year of assessment.$]],],[$Note:$,],[-$ You can support the main issue in the question with relevant case law from the,$12],[$module$\text{'}$s prescribed case law.,$]]$i