INFORMATION:

Larry and Harry, who are partners in a business paid the following annuities to former employees and partners and their dependants. Sally, a former partner who retired after 8 years (not repayment of her share) R12 000 Esther, the widow of a deceased employee and her three children R 8 000 Sue, a retired employee R 5 000 Larry and Harry share the profits and losses in the ratio 70:30, respectively

Calculate the amounts that Larry and Harry can claim as deduction. (6 marks)