a. A company has share capital of KSh. 100 million and is planning to invest an additional fund of KSh 8,000,000 towards its expansion programme Suggest the best option from the following from tax planning point of view. (10mks) . . To issue share capital of KSh 8,000,000. To borrow KSh 2,000,000 @ 18% pa, and to issue debentures of KSh. 2,000,000 @ 11%pa and the balance amount be collected by issuing shares in the public To issue debentures for KSh 5,000,000 @ 11% pa and the balance be collected by Issuing shares in the public. Rate of return is 30% before paying any interest and tax Rate of tax is 30% b) X Ltd. a domestic company has two businesses A and B. For the last two years business A has been running into a loss wiping out the entire profits of business's. At the end of financial year 2015 there are brought forward tosses of KSh 800,000 and unabsorbed depreciation Ksh 500,000. In the financial year 2016 onwards it is expected that business B will eam a profit of KSh. 500.000 annually and if business A is continued at a minimum level there will be an annual loss of KSh 100,000 Required Please suggest to the management of the company regarding i. Whether business A should be continued or shut down (7mks) If continued for how many year Omks)