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 chemy tree orchard on his farm. His receipts and accruals for the year of assessment follow.

Note:

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 fowward 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 $R40$ 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 T$0$ calculate Conrad's normal tax liability for the $2023$ year of assessment