$($b$)$ Ann Mwajuma runs a small business in Thika town. The revenue authority has asked her to submit a self assessment transfer for the year ended $31$ December $2023$

However, Ann Mwajuma did not maintain complete account records for the year ended $31$ December $2023$ She has therefore requested you to assist her and has provided you with the following information:

$1.$ Opening and closing balances of assets and liabilities were as follows for the year ended $31$ December $2023$:

$1$ January $202331$ December $2023$

Sh$.$ Sh$.$

Stock in trade $258,000504,000$

Debtors $($for sales$)117,000129,000$

Creditors $($for purchases$)222,000267,000$

Rent prepaid $9,00012,600$

Electricity expense accred $6,3004,800$

Bank balance $69,00049,500$

Cash in hand $10,8009,900$

Furniture and equipment $50,000160,000$

$2.$ All cash collections were banked after deducting the following payments for the year:

Sh$.$

Cash drawings $240,000$

Casual labour wages $36,000$

Purchases of goods for sale $54,000$

General expenses $343,000$

Lease preparation expense $($five year lease$)12,000$

$3.$ Payments from the bank account for the year ended $31$ December $2023$ have been summarized as follows:

Sh$.$

Purchases of goods for sale $3,045,000$

Rent $151,200$

Electricity expense $41,700$

Seling and distribution costs $90,000$

Casual labour wages $198,600$

Staff contract costs $8,000$

Donations to a childrens home $20,000$

Purchase of furniture and equipment $120,000$

Municipal council rates $3,000$

$4.$ Gross profit mark$-$up was $331/3\%.$

$5.$ Goods withdrawn from business during the year for personal use amounted to Sh$.18,000.$

$6.$ The general expenses paid for the year which amounted to Sh$.343,000$ included the following:

Legal fees incurred in arranging for a business loan Sh$.75,000$

Medical expenses for self Sh$.40,000.$

Painting of a residential houses Sh$.40,000$

School fees for her daughter Sh$.100,000$

Parking meter fines Sh$.3,000$

Debt collection costs Sh$.20,000$

Trading licences Sh$.25,000.$

Ignore turnover tax

Required:

i$)$ Taxable income $($if any$)$ of Ann Mwajuma for the year ended $31$ December $2023(10$ marks$)$

ii$)$ Kra had issued an estimated tax assessment of ksh: $250,000.$ As a tax practitioner advise Ann Mwajuma how to deal with the assessment $(2$ marks$)$

$($Total: $15$ marks$)$