1 2 2 2. Harold is a sole trader and runs a business as a newsagent. He has prepared his accounts to 31st March 2020 as follows: Note Gross Trading Profit 150,000 Bank interest received 2,000 152,000 Less Staff wages and NI 26,000 Rent 20,000 Premises Heat, Light and Insurance 5,000 Motoring Expenses 12,000 Repairs to Shop 3,000 Depreciation 10,000 Harold's Tax and NIC 6,000 Other expenses 3,000 Total expenses 85,000 Net Profit per Accounts 67,000 Note: 1. The interest was credited to Harold's business bank account on 31 December 2019. 2. Harold and his family live on the premises and it has been agreed that 1/5 of the cost of rent, insurance, light and heat relate to private use. 3. It has been agreed with HMRC that 1/4 of the motoring expenses relate to private motoring by Harold 4. Other Expenses were Educational course for Harold 900 Entertaining customers 600 Sponsoring of local charity 300 Gift aid payment to charity (gross; May 2019) 1,200 Harold has taken goods from the business for personal use. The goods taken cost 500 and the gross profit percentage on such goods was 25%. No payment has been made for these goods Required: Compute Harold's taxable trading income before Capital allowances for the period to 31st March 2020