KaDzie ventures has been in business trading dealing in a product called Blewuuu for several in Alakple township in the Volta Region. He presented the following statements for the year ended 31st December, 2017

GHc Ghc GHc

Sales 5,400,000

Cost of sales 2,000,000

Gross profit 3,400,000

Add Discount Received 40,000 3,400,000

Less:

Management Salaries 440,000

Repairs 480,000

Entertainment 120,000

Donation 100,000

Legal Fees 115,000

Unrealised Exchange Loss 240,000

Bad Debts 242,000

Loss on sale of Equipment 60,000

Depreciation 470,000

Medical Expenses 640,000

Sundry Expenses 720,000

Advertising. 150,000

Rent. 800,000

Interest on Loan. 180,000. 4,757,000 1,317,000

KaDzie provided you with the following additional information:

i) Assume Capital Allowance of GHC1,340,000

ii) GHC640,000 of the sundry expenses was used to rehabilitate the private resident of his father iii) Bad Debts: Special GhcGHC20,000 000 - General GHC100,000,000

Bad Debts written off GHC122,000,000

iv) Interest on loan is in connection with uncollectible staff loan written-off. The staffs concerned are no longer in the employment of the firm.

v) Medical Expenses: An amount of GHC180,000,000 was spent on the dependants of members of staff. The rest represent the medical bills of Kadzies grandmother.

vi) The amount slated for entertainment is the cost incurred for quarterly get together breakfast meeting with vendors, staff customers and potential customers of the firm.

vii) Management Salaries: The composition is as follows

KaDzie GHC420,000,000 Staff GHC20,000,000

viii) Repairs: This is made up as follows:

Electronic Security Doors GHC100,000,000

Extension to the warehouse GHC250,000,000

Periodic Repairs and maintenance GHC130,000,000

ix) It has been established the rent cost of the business is only 80% of the amount recorded in the business books. The rest was a cover up for an under-hand dealing with the Police.

Required Calculate the amount to be subjected to tax for 2017 year of assessment of KaDzie