Kean Dean is $66$ years old. He is a livestock and maize farmer. He inherited his farm

from his late grandfather $25$ years ago. In October $2020,$ he purchased a plantation

farm from R$980000($R$380000$ was allocated to the cost of the land. Kean$$s gross

income from the sale of timber for the previous years of assessment was as follows:

R

$2021$ year of assessment $150000$

$2022$ year of assessment $340000$

Kean$$s receipts, accruals and expenditure relating to maize and

livestock farming for the $2023$ year of assessment follow:

Sales$-$maize to a co$-$operative society $1066000$

Sale of a tractor purchased second$-$hand $($used$)$ on $1$ December

$2021$ for R$30000($It was sold on $1$ March $2022$; he did not use it for

farming purposes on $1$ March $2022)$

$76500$

Interest earned from a co$-$operative society on an investment $35625$

Rentals earned for letting surplus farmland to a neighbour. The

neighbour used this land to graze his livestock $72000$

Salaries$-$farm employees $575000$

Purchase of a new planter $-1$ July $2022($excluding VAT at $4\%)120000$

Prevention of soil erosion $55000$

Eradication of noxious plants $20000$

Purchase of irrigation pipes $15000$

Cost of the erection of two houses for farm workers at R$90000$ each

$($note $2)$

$180000$

Cost to build a dam $40000$

Kean$$s receipts, accruals and expenditure relating to his plantation

farming for the $2023$ year of assessment follow:

Sales $-$ timber $623000$

Subsidy received for interest on a loan, the proceeds of which were

used to build roads in the plantation $($see below$)15000$

Interest incurred on above loan $27000$

Salaries $$ plantation employees $260000$

Maintenance of the plantation $32000$

Establishment of new plantations $42000$

Stumping and preparing of ground for the replanting of trees $33000$

Construction of roads in the plantation $29000$

Notes

$(1)$ Kean inherited farming equipment from this late father. This equipment was

purchased by his father on $1$ August $2022$ for R$100000.$ Its tax value to his

father on $31$ July $2022($the date of the inheritance$)$ was R$50000.$ Its market

value on $31$ July $2022$ was R$60000.$

$(2)$ Kean has now erected a total of six houses for his employees. The four previous

houses were erected before $31$ October $2016.$

$(3)$ On $1$ December $2020,$ Kean purchased a new tractor for R$300000($excluding

VAT at $14\%),$ solely for use in the plantation. On $1$ May $2022,$ he purchased a

truck for R$90000($excluding VAT at $14\%).$ It is used solely for transporting

employees for maize and livestock farming purposes. The Commissioner has

agreed to a five$-$year write$-$off period for trucks.

$(4)$ Kean$$s capital development expenditure in relation to his maize and livestock

farming carried forward from the $2022$ year of assessment is R$25000.$

YOU ARE REQUIRED TO :

Calculate Kean Dean$$s taxable income for the $2023$ year of assessment.