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Conrad Brown is 4 0 years old. He is a livestock farmer in the Free State. During the 2 0 2 3 year of assessment,
Conrad Brown is years old. He is a livestock farmer in the Free State. During the 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
Rentals earned note
Irrigation equipment sold note
EXPENDITURE
He incurred the following expenses during the year of assessment:
Lucerne and fodder
Dipping tanks constructed
Planting of cherry trees
Clearing of land to plant cherry trees
Interest incurred on a loan, the proceeds of which were used for farming purposes
Salaries of farm employees
Livestock purchased
Erection of a barn a farm building
Eradication of noxious plants
Deductible noncapital expenses
Note: Irrigation equipment was purchased eight years ago for Rexcluding VAT It was sold on June for Rexcluding VATConrads capital development expenditure brought forward from the year of assessment was R Conrad purchased a tractor on May for Rexcluding VAT Conrad had livestock on hand on February On February livestock were on hand. The livestock on hand had a cost price of R each and a standard value of R each. Conrad erected a house for his farm manager. The house was complete on May The manager occupied it as from June The house cost R In the 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 dogkennel business. YOU ARE REQUIRED TO calculate Conrads normal tax liability for the year of assessment.
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