High and Low are in partnership sharing profits and losses in the ration 2 to 3 respectively after allowing for partnership salaries of K40, 000 per annum for each. The partnership accounts are prepared annually to 31 December. On 1 April 2022 Middle was admitted to the partnership and with effect from that date, the partnership agreement was changed. Profits and losses and partners annual salaries were to be provided for as given in the table below: HIGH LOW MIDDLE Salaries per annum K32, 000 K30,000 K28,000 Share of balance of profits and losses 5 3 2 The partnerships profit and loss account for the year ended 31 December 2022 was as follows: K K Gross profit 377, 470 Less expenses: Wages and salaries note 1 128, 650 Rent and rates note 2 84, 290 Repairs and renewals note 3 15, 880 Electricity note 4 2, 515 Legal expenses note 5 4, 215 Motor car running expenses note 6 6,250 Depreciation 8,150 Provision for income tax 10,180 Miscellaneous expenses note 7 12,140 (272,270) Net profit 105, 200 Notes to the profit and loss account are as follows: Note 1 Wages and salaries Included in wages and salaries are the partners salaries of K12,000 for High and K5,000 for Low. Note 2 Rent and rates One third of the expenditure on rent and rates relate to rent paid for houses occupied by the three partners and their families. Note 3 Repairs and renewals The charge in the profit and loss account includes K3,000 incurred on fitting fire safety equipment in the factory. Note 4 Electricity The charge for electricity is made up as follows: K Electricity for partners houses 691 Administrative offices 829 Factory 995 Total charge 2, 515 Note 5 Legal expenses These are made up of the following K Defending action in respect of alleged faulty goods 1,150 Costs in connection with acquisition of new 55 year lease 1,200 Defending High in connection with speeding offence 865 Appeal against previous years income tax assessment 1,000 Total 4,215 Note 6 Motor running expenses (see also not 8) The partners use their own private cars in the partnership business. Business mileage as a percentage of total mileage done by each partner together with the total motor car running expenses are as given below: PARTNER BUSINESS MILEAG MOTOR CAR EXPENSES % K High 75 2,210 Low 80 2, 150 Middle 60 1,890 Total 6,250 Note 7 miscellaneous expenses These expenses consist of the following: K Theft of money by employee 3,100 Donation to Mwashala Mweka Democratic party 2, 500 Sundry allowable expenses 6, 540 Total 12, 140 Note 8 Additional information (see note 6 above) He table below provides information about the partners motor cars referred to in note above. PURCHASE COST DATE BROUGHT INTO BUSINESS USE K Highs car 14,000 I October 2020 Lows car 15,000 1 November 2020 Middles car 18,000 1 April 2021 Capital allowances on other assets held by the partnership were K12, 000 for the year ended 31 December 2022. Required a) Calculate the partnerships tax adjusted business profit for the year ended 31 December 2022 before division between the partners. (10 marks) b) Calculate the amount of business profit each partner will be assessed for the year ended 32 December 2022. (10 marks) c) Calculate the tax liability of each partner in the tax year 2022