Dean (54 years) operated a satellite plumbing business as a sole proprietor. On 1 April in the current year of assessment, he decided to enter into a partnership agreement with Jason (38 years). They agreed to share profits on a 50:50 ratio. The following income and expense items for the current year of assessment relate to the partnership: R Income 1 860 000 Gross income 1 830 000 Irrecoverable debts recovered (Note 1) 30 000 Expenses 1 773 100 Sundry expenses (deductible for tax purposes) 384 900 Administrative expenses 112 000 Depreciation (Note 2) 148 600 Salaries: Dean Jason Other employees 450 000 360 000 156 000 Retirement annuity fund: Dean (Note 3) Jason (Note 3) 52 600 30 000 Provident fund: Other employees (Note 4) 38 600

Drawings Dean 28 400 Bad debts (Note 5) 12 000 Additional Information: 1. Irrecoverable debts recovered The irrecoverable debts recovered relates to R30 000 for debtors brought into the partnership by Jason.

2. Depreciation Delivery vehicle 1: This vehicle was purchased new by Jason on 30 May 2017 for R400 000. Delivery vehicle 2: This vehicle was purchased second hand in cash by the partnership on 1 April of the current year of assessment (2023), when Jason joined, at a cost of R200 000. In terms of Interpretation Note No. 47, delivery vehicles are written off over a four-year period. The second-hand delivery vehicle was purchased from a person who is registered for VAT purposes. 3. Contributions to retirement annuity funds The retirement annuity fund contributions are allowed as a deduction for the partnership since they are paid in terms of the partnership agreement.

4. Contributions to provident fund The partnership contributes R38 600 on behalf of its employees to a provident fund.

5. Bad debts R4 000 of the bad debts relates to a debtor brought into the partnership by Jason. 6. General All amounts exclude VAT, except where otherwise indicated. The partnership is a registered vendor for VAT purposes. REQUIRED: Calculate the taxable income for Dean for the year of assessment ending February 2023