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Baygon ltd has presented the following income particulars for the year 2 0 2 2 ; Ksh 0 0 0 Sales 1 , 9 4

Baygon ltd has presented the following income particulars for the year 2022;
Ksh 000
Sales
1,942,000
Purchases
840,500
Closing stock
150,000
Cost of sales
612,000
Interest from bonds held in Ghana
32,400
Discount received
26,750
Dividend from Limuru Tea ltd (net)
134,000
Operating expenses allowable
920,000
Depreciation
60,000
Finance cost
98,000
Additional information:
1. The company had a policy of maintaining a closing stock thats twice the value of the opening stock.
2. The closing stock above is undervalued by 20%
Required:
Calculate the taxable income for Baygon ltd for the year 2022. The Tax laws for 2022 apply accordingly.
A.
Ksh 211,400
B.
Ksh 202,000
C.
Ksh 283,250
D.
Ksh 203,800
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Yutong (K) ltd which is a micro-enterprise has presented the following income particulars for the year 2022;
Ksh 000
Sales
7,379,600
Purchases
3,193,900
Closing stock
570,000
Interest from Loan Stocks held in Singapore
123,120
Discount received
101,650
Dividend from EABL (K) ltd
509,200
Operating expenses allowable
3,496,000
Depreciation
228,000
Finance cost
372,400
Additional information:
1. The closing stock above is undervalued by 20%. The opening stock was ksh.285,000
Required:
Calculate the taxable income for company for the year 2022.
A.
Ksh 704,600
B.
Ksh 853,195
C.
Ksh 912,425
D.
Ksh 803,320
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BIG TIGER Insurance ltd presented the following information relating to its general insurance business for the year 2022:
Ksh 000
Premiums received
7,610,000
Premiums returned to policyholders
847,000
Premiums received on re-insurance contracts
656,000
Premiums receivable; b/d
112,000
Premiums receivable; c/d
133,000
Bonus utilized in reduction of premiums
64,000
Premiums transferred on re-insurance
107,000
Required:
Calculate the maximum amount of allowed management expenses for the company.
A.
1,299,187,500
B.
Ksh 1,211,337,500
C.
1,391,800,000
D.
Ksh 1,111,237,500
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BIG TIGER Insurance ltd presented the following information relating to its life insurance business for the year 2022:
Ksh 000
Premiums received
7,610,000
Premiums returned to policyholders
847,000
Premiums received on re-insurance contracts
656,000
Actuarial surplus transferred to shareholders
540,000
Premiums receivable; b/d
112,000
Premiums receivable; c/d
133,000
Bonus utilized in reduction of premiums
64,000
Management expenses
1,674,000
Premiums transferred on re-insurance
107,000
Required:
Calculate the taxable income from the life business of the insurance company.
A.
Ksh 708,828,750
B.
Ksh 937,743,750
C.
Ksh 939,960,000
D.
Ksh 740,083,750
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Grand Canyon ltd which listed 24% of its issued share capital at the Nairobi Securities Exchange (NSE) in the year 2016 has presented the following summary income statement items for the year 2022:
Ksh.000
Ksh.000
Sales
1,280,000
Opening stock
70,400
Purchases
612,500
Closing stock
53,100
Discount received
18,500
Specific bad debts recovered
14,800
Insurance recovery- Lorry written off after an accident
13,500
Dividends from Uzima ltd listed at NSE (gross)
5,700
Interest on fixed deposit account held at Citi Bank (net)
51,000
Interest from a bond issued by Wuyii China ltd-in China
74,500
Operating expenses
442,500
Net profit
385,700
1,511,100
1,511,100
Additional information:
1. The opening has been undervalued by 22% and the closing stock has been overvalued by 18%
2. Operating expenses include depreciation amounting to ksh 48,000,000.
3. The operating expenses exclude discount allowed of ksh 34,000
Required:
Calculate the tax payable by the company for the year 2022
A.
Ksh 96,460,000
B.
Ksh 88,190,000
C.
Ksh 80,190,000
D.
Ksh 75,460,000
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Wajumbe Sacco (k) ltd has presented has presented the following information on their financial

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