The following is the statement of comprehensive income of a farmer (Mr Xoli Zulu) who commenced farming on 25 August 2021. R INCOME Livestock sales 831 000 Grazing fees 21 000 Produce sales (wool and fruit) 114 220 Dividends received from South African companies 6 000 Fee for letting of machine 9 600 Interest received 1 920 EXPENDITURE Development expenditure: New irrigation equipment 25 000 Dams and boreholes 12 360 Establishment of orchards 13 600 New fencing 3 420 Road-making 15 340 Soil-erosion works 7 500 Fertilizers and manures 5 250 Food for livestock 9 360 General farming expenses (all allowable) 13 960 Interest payable 6 340 Livestock purchases 34 200 Repair of damaged fencing 3 900 Seeds 2 980 Wages and rations..... 21 556 Wear-and-tear and s 12B allowance (all allowable) 14 800 Net profit 794 174 Notes: 1. When he commenced farming, the executors of the estate of his late father handed over to him 1 800 ewes, 200 rams and 400 lambs. The current market value of these animals at the date of his fathers death was R650 000, and this was the fair market price on 25 August 2021. The standard value of this livestock would have been R12 800. 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 R200 000. The standard value would have been R4 200. 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 R3 500. 5. 24 ewes and 12 rams were donated to charitable institutions during the year. These animals were acquired at a cost of R6 700, but at the date of donation their fair market value was R10 800 6. At 28 February 2022 the numbers of livestock on hand were as follows: R Ewes 1 500 Rams 250 Lambs 400 7. The estimated cost of production of wool and fruit on hand at 28 February 2022 was R9 100. YOU ARE REQUIRED TO calculate the taxable income of the farmer for the year of assessment ended 28 February 2022