Kip and Ltd. is a Kenyan incorporated company. The following statement of comprehensive income of the company for the year of income 2019 Sh. 000 Sh. 000 Gross profit 59,000 Less: Depreciation 4,872 Legal expenses 508 Loan Interest 819 Electricity 378 Salaries & wages 9,387 Telephone 357 Patent royalties paid 756 Travel expenses 785 17,862 41358 Other Income Patent Royalties Received 2,772 Loan interest received 193 Dividend received from Shamba Ltd 5,628 8,593 Net Income 49,951 Additional Information i. Loan Interest paid included the following: Interest of sh.285,000 relating to a loan used to acquire shares of Shamba Ltd Interest of sh.258,000 relating to a loan to purchase office equipment ii. Salaries and wages include passage of sh.1,008,000 paid to a director who relocated to another country iii. Travel expenses include sh.155,000 paid to a new employee hired from a foreign country iv. Loan interest received relates to a loan issued to an employee of the company to purchase a residential house v. Not included in the other income was received of sh.1,638,000 from one lease, gross of loss of 397,000 made on another lease vi. Operating loss of sh.189,000 had been carried forward for the previous eight years. The loss was included in the salaries and wages expense as of 31 December 2019 vii. Royalties of sh.145,000 were due for the receipt as of 31 December 2019 but had not been recorded in the books viii. Legal expenses included. Sh.176,000 paid on disposal of some property and equipment Sh.48,000 incurred on debt collection Sh.78,000incurred on defending the company against a claim for breach of contract ix. Patent royalties received were from Shamba Ltd. while those paid were to a Malawi company x. Capital allowances for the year ended 31 December 2019 were agreed with the commissioner at sh.1,932,000 Required Explain the tax treatment of each item in the additional information regarding the income tax act CAP 470. (10 Marks)