ered Amani, Kigen and Morris are in a partnership of selling imported clothes, handbags and shoes. They have provided the following information for the year of income 2018: of Sh. tion (2.080,000) 180,000 Net loss after deducting the following: Rent Legal costs Salaries and wages 75.000 300.000 50.000 Donations: Turkana Food Relief Fund 35.000 65.000 Electricity and water Repairs to business premises Stationery 12.000 90.000 Vehicle expenses 24.000 65.000 Audit and accountancy Advertising Depreciation: 10.000 10.000 Car Building 33.000 240.000 Salaries Kigen 240.000 Morris Amani 360.000 80,000 Interest on capital Kigen 80,000 Morris Amani 120,000 40,000 Bad debts 8,000 Loss on sale of shares 6,000 5,000 Political party membership: Kigen Withdrawals by Morris Dresses taken by Amani for her own use School fees paid for Amani's children 12,000 55,000 Additional information: 1. Wear and tear deductions were estimated at Sh.16,000. 2. Fifty per cent of vehicle expenses was for personal use. 3. Salaries and wages include Sh.30,000 paid to Amani's daughter for assisting in the business during the school holidays. 4. Rent analysis: Payment for Partners residence Sh. 80,000 Business Sh.100,000 5. Legal costs included a payment of Sh.15,000 paid to an arbitrator to settle a personal dispute between Kigen and Morris. 6. Sh. 10,000 Bad debt analysis: General provision Specific provision Written-off 12.000 8,000 Amani's son (defaulter) 10.000 40,000 7. Sh. 28,000 Advertising: Advertising campaign Cost of new sign board Sale of clothes Amani's birthday expenses 5,000 9,000 23,000 65,000 Sh. 8. 19,000 Other incomes (included in trading profit) Dividends from shares KCB Ltd. Rental income: sub-letting business premises Gain on sale of furniture 22.000 13,000 54,000 Required: (a) Taxable income (loss) for the partnership business and distribution among the partners for 2018 if they share profits and losses in the ratio 2:1:1. (b) Determine the taxable income of each partner. B. 1 ered Amani, Kigen and Morris are in a partnership of selling imported clothes, handbags and shoes. They have provided the following information for the year of income 2018: of Sh. tion (2.080,000) 180,000 Net loss after deducting the following: Rent Legal costs Salaries and wages 75.000 300.000 50.000 Donations: Turkana Food Relief Fund 35.000 65.000 Electricity and water Repairs to business premises Stationery 12.000 90.000 Vehicle expenses 24.000 65.000 Audit and accountancy Advertising Depreciation: 10.000 10.000 Car Building 33.000 240.000 Salaries Kigen 240.000 Morris Amani 360.000 80,000 Interest on capital Kigen 80,000 Morris Amani 120,000 40,000 Bad debts 8,000 Loss on sale of shares 6,000 5,000 Political party membership: Kigen Withdrawals by Morris Dresses taken by Amani for her own use School fees paid for Amani's children 12,000 55,000 Additional information: 1. Wear and tear deductions were estimated at Sh.16,000. 2. Fifty per cent of vehicle expenses was for personal use. 3. Salaries and wages include Sh.30,000 paid to Amani's daughter for assisting in the business during the school holidays. 4. Rent analysis: Payment for Partners residence Sh. 80,000 Business Sh.100,000 5. Legal costs included a payment of Sh.15,000 paid to an arbitrator to settle a personal dispute between Kigen and Morris. 6. Sh. 10,000 Bad debt analysis: General provision Specific provision Written-off 12.000 8,000 Amani's son (defaulter) 10.000 40,000 7. Sh. 28,000 Advertising: Advertising campaign Cost of new sign board Sale of clothes Amani's birthday expenses 5,000 9,000 23,000 65,000 Sh. 8. 19,000 Other incomes (included in trading profit) Dividends from shares KCB Ltd. Rental income: sub-letting business premises Gain on sale of furniture 22.000 13,000 54,000 Required: (a) Taxable income (loss) for the partnership business and distribution among the partners for 2018 if they share profits and losses in the ratio 2:1:1. (b) Determine the taxable income of each partner. B. 1