Afro Insurance Lid. underwrites three classes of insurance. The management has provided you with the details shown below on their operations for the year ended 31 December 2001 : Class of insurance Fire Motor Theft Kshs .00 Vehicle Kshs .000 0 Kishs .00 Gross premium written 23,088 24,664 9,780 Reinsurance ceded 14,747 15.007 4,822 Unearned premium brought forward 4,205 6,293 1,466 Unearned premium carried forward 2,035 9,259 668 Claims paid 2,216 5,538 1,215 Claims outstanding brought forward 2,781 10,325 4,532 Claims outstanding carried forward 2,755 9,416 8,756 Legal expenses on claims 645 420 125 Depreciation 60 125 65 Gain on sale of m. vehicles previously written off 50 Specific bad debts 80 35 62 Management expenses 1,606 2,350 876 Commissions net 255 1,546 890 Additional information L. Wear and tear allowances have been agreed with the Income Tax Department at Kishs. 454,000 2 The company invested surplus funds and earned investment income as follows : Kshs . Interest from Treasury bills (net) 2,040,000 Interest from fixed deposits in s in local bank (net ) 762,450 Gross dividends from Zim-Re of Zimbabwe (a foreign 450,000 Company ) 912,000 Dividends from KELP Ltd. 3. The company paid Kshs. 745,000 to ABC Investment Management Services, their fund managers for professional services for the year ended 31 December 2001 . 4. The company owns Afro House which houses its offices. Part of the office space is rented out to other tenants. In the year to 31 December 2001, the company received Kishs. 2,200,000 net rental income from their estate agents. Property management fees amounting to Kishs . 2,400,000 for the year to 31 December 2001 had been deducted Afro Insurance Lid . owns 80 % of the ordinary shares in KELP Ltd . a locally incorporated company- Required: (a) Compute the taxable profit or loss for Afro Insurance Lid. for the year ended 31 December 2001