Cape Roben Island Limited presented the following Statement of Profit and Loss income of the company for the year ended 31 December 2017: Income Statement for the year ended 31 December 2017 Note 1 Gross Profit Investment income Profit on sale of shares 2 3 Sh. 1,864,000 284.636 216.324 2,364,960 1.020,000 273,000 216.000 158.400 344.760 133.600 2.146,360 218,600 Directors remuneration Interest Audit fees and expenses Bad debts Depreciation Miscellaneous expenses 4 5 Net profit Notes 1. Investment income: Dividends from shares in Wakulima Commercial Bank Ltd Interest on fixed deposit account Interest on Treasury bills Dividends from a subsidiary company Sh. 72.000 58.760 93.878 60.000 284.638 2. Directors remuneration: Directors fees Travelling expenses - directors Payment to directors pension scheme Compensation to a former director for wrongful termination contract Sh. 240,000 400,000 160,000 220,000 1,020,000 3. Interest expenses Interest on bank overdraft Interest on loan from a foreign bank Interest on loan to purchase investment shares Sh. 151,200 50,400 72.000 273,600 4. Audit fees and expenses: Audit fees Tax appeal against assessment Book-keeping fees Audit expense paid in relation to a discontinued business line Sh. 68,000 32.000 48.000 68,000 216,000 5. Bad debts: Embezzlement by staff Insurance compensation on embezzlement Bad debts written off General provision for bad debts Sh. 21.600 (12,000) 28.800 120.000 158,400 6. Miscellaneous expenses: Acquisition of a 100 year lease on business premises Directors Christmas party Subscription to a trade association A.S.K show contribution Donation to a children's home Sh. 28,000 24,000 30,000 10,000 41.600 133,600 Required: Determine the adjusted taxable profit or loss of Cape Roben Island Limited for the year ended 31 December 2017. (20 marks)