Question $3($CALCULATION OF TAXABLE INCOME OF A FARMER$][40$ marks$]$

Nhlakanipho Buthelezi, aged $39,$ a resident of the republic farms on the KwaZulu Natal South Coast. The farming activities sugar can produce, bananas and livestock. The details of the receipts and expenditure for $2024$ year of assessment are as follows

Receipts and accruals.

$\backslash$table$[[$Produce Sales $($wool and fruit$),$R$456880],[$Livestock Sales,R$3324000],[$Interest received,R$7680],[$Grazing fees,R$84000],[$Fee for letting of machine,R$38400],[$Local SA dividend,R$24000]]$

Expenditure incurred

$\backslash$table$[[$New Irrigation Equipment,R$100000],[$Dams and boreholes,R$49440],[$Establishment of orchards,R$54400],[$New fencing,R$13680],[$Road$-$making,R$61360],[$Soil$-$erosion works,R$30000],[$Fertilizer and manures,R$21000],[$Food for livestock,R$37440],[$General Farming Expenses $($All allowable$),$R$55840],[$Interest Payable,R$25360],[$Livestock purchases,R$136800],[$Repair of damaged fencing,R$15600],[$Seeds$,$R$11920],[$Wages and rations Paid,R$86224],[$Wear and tear and S$12$B Allowable $($all allowable$),$R$59200]]$

Additional information

$(1)$ When Nhlakanipho commenced farming, the executors of the estate of his late Uncle handedover to him $1800$ ewes, $200$ rams and $400$ lambs. The current market value of these animals at the date of his uncle's death was R$2600000,$ and this was the fairmarket price on $25$ August $2023.$ The standard value of the livestock would have been R$51200.$

$(2)$ On the $7^{th}$ of August $2023$ Nhlakanipho also received by way of donation from his uncle $600$ ewes and $100$ rams. At the date of donation, the fair market value of these animals was R$800000.$ The standard value would have been R$16800.$

$(3)$ He has elected the standard values fixed by the regulation.

$(4)$ During the year Nhlakanipho's family consumed produce at an estimated cost of R$14000.$

$(5)24$ ewes and $12$ rams were donated to charitable institutions during the year. These animals were acquired at a cost of R$26800,$ but at the date of the donation the fair market value was $R43200.$

$(6)$ At $28$ February $2024,$ the number of livestock on hand were as follows ;

$\backslash$table$[[$Ewes$.,1500$ @ R$24$ per ewe$],[$Rams$,250$ @ $24$ per ram$],[$Lambs$...,400$ @$]]$

$(7)$ The estimated cost of production of wool and fruit on hand at $28$ February $2024$ was R$36400.$

Required

Calculate the Nhlakanipho's taxable income for the year of assessment ended $28$

February $2024$

$[40$ marks$]$