Amani Kazungu has just learned that he is required to prepare tax returns after concluding his first year in Business. His book keeper has generated a highly summarized income statement as given below

Sh.

Sh.

Sales ( before discounts)

8,000,000

Purchases

3,000,000

Salaries

1,200,000

Bad debts and provisions

320,000

Advertising

150,000

Donations

240,000

Entertainment and meals

120,000

Legal costs

210,000

Premises refurbishment costs

920,000

Tax related costs

360,000

As a tax expert, explain to Mr Kazungu the details that has to be provided for each item above clearly indicating why the details are important in taxation. Your explanations should be based on the income tax act Chapter 470 laws of Kenya (10 Marks)