On 31 December of the year of assessment, Pete Gregg was forced to retire from Starry Jewellers, having reached the mandatory retirement age of 65 years. Pete joined Starry jewellers, a jewellery manufacturer, on 31 January (20 years ago). Upon retirement, he was awarded the following. A gold wristwatch, which cost the company 4800 to manufacture, in appreciation of his long service to the company. he had never received an award in respect of long term service. The normal wholesale price of the watch when it is sold to Jewellery retailer is R10 000. These retailers then sell their trading stock of gold watches at a 50% mark up. His other receipts and accruals during the current year of assessment were as follows: A cash salary of 18 000 a month. The use of company car which cost R246 240 (including vat) All costs were paid by Starry Jewellers. On his retirement, Pete ceased to have the use of this car. A ten-day holiday at a beach cottage owned by Starry Jewellers. The accommodation is let to nonemployees at a rate of 750 per person per day. Pete and his wife, Tracey, invited another couple to join them at the beach cottage for ten days. Starry Jewellers (pty)ltd pays Pete's Monthly home telephone account. The total paid during the current year of assessment was R 10 050. Pete is required to make business calls from home from time to time. A loan of R120 000 at an interest rate of 1% a year was granted to him on the 1 March of the current year of assessment. Pete used the loan to purchase a flat. The flat has been let to tenants for the entire year of assessment at a monthly rental of R 5 800. On retirement, Pete was required to repay the loan, which he did by using the proceeds of a mortgage bond that he had taken out on the property. Interest incurred on the mortgage bond for January and February of the current year of assessment amounted to R 3 000 in total. Calculate Pete Gregg's tax Liability for the 2020 year of assessment. Assume that the official rate of interest is 8% for the period 1 March 2019 to 31 July 2019 (Five months) and 7.75 from 1 August 2019 (seven months)