The following is the statement of comprehensive income of a farmer rambo who commenced farming

on $25$ August $2021.$

R

INCOME

Livestock sales $831000$

Grazing fees $21000$

Produce sales $($wool and fruit$)114220$

Dividends received from South African companies $6000$

Fee for letting of machine $9600$

Interest received $1920$

EXPENDITURE

Development expenditure: New irrigation equipment $25000$

Dams and boreholes $12360$

Establishment of orchards $13600$

New fencing $3420$

Road$-$making $15340$

Soil$-$erosion works $7500$

Fertilizers and manures $5250$

Food for livestock $9360$

General farming expenses $($all allowable$)13960$

Interest payable $6340$

Livestock purchases $34200$

Repair of damaged fencing $3900$

Seeds $2980$

Wages and rations..... $21556$

Wear$-$and$-$tear and s $12$B allowance $($all allowable$)14800$

Net profit $794174$

Notes:

$1.$ When he commenced farming, the executors of the estate of his late father handed over to him $1800$

ewes, $200$ rams and $400$ lambs. The current market value of these animals at the date of his father$$s death

was R$650000,$ and this was the fair market price on $25$ August $2021.$ The standard value of this livestock

would have been R$12800.$

$2.$ On $26$ November $2021$ he 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$200000.$ The standard value would have been

R$4200.$

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

$4.$ During the year he$,$ his wife and his family consumed produce at an estimated cost of R$3500.$

$5.24$ ewes and $12$ rams were donated to charitable institutions during the year. These animals were

acquired at a cost of R$6700,$ but at the date of donation their fair market value was R$10800$

$6.$ At $28$ February $2022$ the numbers of livestock on hand were as follows:

R

Ewes $1500$

Rams $250$

Lambs $400$

$7.$ The estimated cost of production of wool and fruit on hand at $28$ February $2022$ was R$9100.$

YOU ARE REQUIRED TO calculate the taxable income of the farmer for the year of assessment ended $28$

February $2022?$