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’000 ...............................................GHc’000
Sales ................................................5,400,000
Cost of sales ....................................2,000,000
Gross profit ......................................3,400,000
Add Discount Received .......................40,000
.........................................................3,440,000
Less:
Management Salaries .....................540,000
Repairs ...............................................480,000
Entertainment ....................................120,000
Donation ..............................................100,000
Legal Fees ............................................115,000
Unrealised Exchange Loss ................240,000
Bad Debts ............................................240,200
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 .............4,850,700
...........................................................1,417000

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 - GHC20,000 000

- 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 Kadzie’s 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.