Kill me quick investment Ltd is a company dealing in online marketing and sale of electrical located in Kampala Capital City. The Company started operations on July 02 2021. Fo r the year ended 30th June 2022, the following financial report was extracted by the Accountant:

Shs.		Shs.
Sales Revenue		400,000,000
Less: cost of sales		253,000,000
Gross profit		147,000,000
Add: miscellaneous income		53,000,000
Gross profit		200,000,000
Less: Operating expenses
Rent of office space	6,000,000
Electricity	3,200,000
Staff salaries & wages	2,000,000
Telephone and meals	7,000,000
Repairs	2,600,000
Sales promotions	3,600,000
Depreciation	10,000,000
Consultancy fees	5,000,000
Bad debts	7,500,000
Donations	22,000,000	(98,900,000)
Surplus		101,100,000

Additional information:

Miscellaneous income includes:

Shs. 26,000,000 market value of stationery was received from Picfare Industries as a gi ft in respect of prospective business with Kill me Quick Investment Ltd. According to the Accountant Shs. 500,000 was sent to transport the gift to Company premises.

Telephone and Meals Shs. 7,000,000:

- Telephone constitutes 75% of the above expenses. However, half (50%) of the telephone expenses relate to expenses paid for shareholders domestic consumption.

- All the meals were availed to employees on equal basis during working hours. However, the values of benefits were not included in employees taxable income.

3. Donations:

- Donations to African Reach the Aged (a charity NGO) 1,000,000

- Donations to NRM Party (Bye Elections) 19,000,000

- Unaccounted for Donations 2,000,000

4. Bad Debt s:

- General bad debts estimated by Chief Accountant 6,000,000

- Bad debts (Sky Line a leading customer) 500,000

- Bad debts to employees 1,000,000

5. Repairs Shs. 2,600,000:

- A q quarter of the costs were sent on purchase of Box files and the balance was sent on purchase of a motor cycle on 20 ^thJune, 2022.

Required:

i) Compute Kill me Quick Investment Ltd taxable income for the year ended 30th June 2022 (20 Marks)

(ii) Compute its tax liability for the same period. (05 Marks)