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

Shs. Shs.Sales Revenue 400,000,000Less:

Cost of sales 253,000,000

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Gross profit 147,000,000

Add:Miscellaneous Income 53,000,000

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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)

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Surplus 101,100,000

Additional information:

1.Miscellaneous income includes Shs. 26,000,000 market value of stationery was received from PicfareIndustries as a gift 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.

2.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 Debts:-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 quarter of the costs were sent on purchase of Box files and the balance was sent on purchase of a motor cycle on 20th June, 2022.

Required:

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

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