Julie Connors created a trust on 1 March 2018 in favour of her three grandchildren Penny, John, and Naomi (aged 15, 21 and 24 years respectively on that date). Their father is James Connors, Julies 50-year-old son. Penny celebrated her 18th birthday on 14 September 2020.

Penny, John and Naomi each have a vested right to one third of the retained income of the trust. Julie donated a farm with a market value of R2 000 000 to the trust.

The annual rentals derived from the farm were R160 000. The trust will be wound up two years after Julies death. The farm will be sold and its proceeds will be distributed equally among the beneficiaries who are alive at that stage.

James Connors sold a flat at its market value of R900 000 to the trust on 1 May 2018. The selling price was left owing as a loan account bearing market-related interest at 8% a year, repayable on the dissolution of the trust.

The trustees have a discretion regarding the amounts to be distributed to the beneficiaries, provided that each beneficiary receives the same amount.

The following information relates to the 2021 year of assessment:

An amount of R25 000 was distributed to each of the three beneficiaries on 31 August 2020, consisting of R22 410 from the farm rentals and R2 590 from the flat rentals. A further R30 000 was distributed to each beneficiary on 28 February 2021, pro rata from the income that accrued to the trust.

Calculate the taxable income for the 2021 year of assessment of each of the parties referred to in the question.

\begin{tabular}{|l|l|l|} \hline Receipts and accruals & 1Marchto31August & 1Septemberto28February \\ \hline Net rentals - farm (after deduction of allowable expenditure) & 77000 & 77000 \\ \hline Net rentals - flat (after deduction of interest and repairs) & 8900 & 12600 \\ \hline Net income - current year & 85900 & 89600 \\ \hline \end{tabular}