Mr. Capello is a marketing executive with Pelican ltd, a local Company and was a resident of Kenya for the whole of the year 2021. The following extracts related to information about his income and related benefits for 2021. 1. Basic salary from the company was at the rate of Ksh.230, 000 per month up to 31 July 2021. It was however increased to ksh. 275, 000 with effect form 1 August 2021 and backdated to 1st January 2021. 2. The company made the following payments to him per month: i) Home to office car allowance - ksh. 88,000 ii) House allowance ksh 60,000 iii) Ksh. 50,000 allowance for making sales-check trips. 3. He was paid an end of year bonus of ksh 150,000. 4. The company has a medical scheme that covers all employees in the management group. During the year Mr. Capello enjoyed medical benefit amounting to ksh. 350,000. 5. The company paid insurance premium for his life with ALICO (TZ) ltd that operates in Tanzania amounting to ksh 340,000. The cover secures a capital sum payable to Capello in Tz shillings upon maturity. 6. The company has a generous pension scheme into which ksh 28,000 is contributed for him every month. He also contributes a similar amount into the scheme. 7. The Company gave him a soft loan amounting to ksh 2,800,000 at an interest rate of only 2% pa. 8. He enjoyed free meals at the work place amounting to ksh 124,000 for the year. 9. He was given a gift worth ksh 68,000 during the year. 10. He used his money and bought personal protective equipment (PPE) amounting to ksh 260,000 which he needed in some of his sales check trips since some locations were in high risk places due to Covid-19 Required: a) Compute Mr. Capellos taxable income for the year 2021 (16 Marks) b) Tax payable for the year (4 Marks) (Total: 20 Marks)