Mark is a sole proprietor of a stationery business. On $1$ June $2020$ he entered into a partnership agreement with

James. As per the agreement the partners will share profits and losses on a $50$:$50$ basis. In the $2022$ year of

assessment, the partnership had the following income and expenses:

Income $855000$

Gross income $830000$

Irrecoverable debts recovered $($Note $1)25000$

Expenses $739750$

Sundry expenses $($deductible for tax purposes$)125250$

Administrative expenses $75000$

Depreciation $($Note $2)72500$

Salaries: Mark

James

Other employees

$125000$

$165000$

$72750$

Retirement annuity fund: Mark $($Note $3)$

James $($Note $3)$

$32500$

$18750$

Provident fund: Other employees $($Note $4)28750$

Drawings James $16750$

Bad debts $($Note $5)7500$

Additional Information:

Note $1-$ Irrecoverable debts recovered

The irrecoverable debts recovered relates to R$25000$ for debtors brought into the partnership by James.

Note $2-$ Depreciation

Delivery vehicle $1$: This vehicle was purchased for use in the partnership on $1$ June $2016$ for R$250000.$

Delivery vehicle $2$: This vehicle was purchased second hand in cash by the partnership on $1$ May of the current

year of assessment $(2022),$ when James joined at a cost of R$225000.$

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.

Note $3-$ Contributions to retirement annuity funds

The retirement annuity fund contributions are allowed as a deduction for the partner$-$ship since they are paid in terms of

the partnership agreement.

Note $4-$Contributions to provident fund

The partnership contributes R$28750$ on behalf of its employees to a provident fund.

Note $5-$ Bad debts

R$3000$ of total bad debts relates to a debtor brought into the partnership by James.

REQUIRED:

Calculate James$$s taxable income for the current year of assessment for $2022?$