Mrs. James, a SA resident, aged 47 and an employee of Bells Limited, was retrenched on 31 May 2015 when Trading Limited had effected a general reduction of staff. In terms of his retrenchment package he received a lump sum of R60 000. In addition, he was paid out an amount of R6 000 in respect of leave that was due to him. For the period ended 31 May 2015 Mr James had earned a salary of R9 000 per month. This was unfortunately the second time that Mr James had lost his job. The first time was in 2008 when his employer ceased carrying on the trade by which Mr James was employed. His employer had paid him an amount of R8 000 as compensation at that time. Mr James used part of his lump sum to purchase an annuity, at a cost of R40 000, on 1 July 2015 for 10 years from an insurer. Under this contract Mr James was to receive R600 per month commencing from 31 July 2015. Mr James used the monthly income to invest R600 in unit trusts (capital investment). Mr James received interest of R100 and local dividends of R160 for the year ended 29 February 2016 in respect of the unit trusts. Mr James also received the following in respect of the year ended 29 February 2016: Interest on special savings accounts R23 000 Net rentals from a flat inherited from his late father R55 000 Annuity from a domestic family trust R12 000 (The annuity was funded equally out of South African dividend and interest income). Required: Calculate Mr James taxable income for the year of assessment ended 29 February 2016. Show all calculations.