Question $2$

$[40$ Marks$]$

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:

$\backslash$table$[[,$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:

Irigation 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$15000.$

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

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.

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.

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.