Mr. Ojwang is employed as the manager in charge of human resource at Fanaka Limited. He has provided the following information relating to his income for the year ended 31 December 2019: 1. Basic salary of Sh.150, 000 per month. (Monthly PAYE was Sh.30, 000). 2. He was given an annual clothing allowance of Sh, 91,000 for purchase of office attire appropriate for his position. He also earned a management monthly allowance of Sh.2,500 for attending meetings from 1 April 2019 to the end of the year. 3. The company provided him with a saloon car of 3,000cc. The car had cost the company Sh.2,500,000 in 2019. Depreciation policy on motor vehicles is at the rate of 100% per annum on cost. 4. He was provided with a company house leased at Sh.25, 000 per month. A nominal rent equivalent to 8/ of his monthly basic salary was deducted by the company to cater for the rent. 5. The education fees for his two daughters amounting to Sh.l00.000 were paid by the company during the year. This amount was charged to the companys income statement. 6. Mr. Ojwangs has a life insurance policy for self and family for which he pays total annual premiums of Sh. 150,000. 7. He is contemplating purchasing a residential house in the near future. During the year he invested Sh.250, 000 in a registered home ownership savings plan from which he earned an interest of Sh. 10,000. 8. He contributed Sh.25, 000 per month towards a registered pension scheme. 9. His private telephone charges averaging Sh.2,500 per month were paid by the company. 10. He earned interest income of Sh,150.000 during the year from his investments in housing development bonds. 11. In the month of November 2019, he received a bonus of Sh.75, 000 from the employer for good performance. 12. Mr. Ojwang reported a gross income of Sh.900, 000 for the year ended 31 December 2019 from his pig rearing farm. This was before deducting the following expenditure:

Sh. Purchase of pig feed 205,000 Wages to farm labourers 80,000 Purchase of a plastic water tank 11,000 Salary for farm manager 150,000 Farmhouse renovation costs 65,000 Required (i) Taxable income of Mr. Ojwang for the year ended 31 December 2019. (ii) Tax liability (if any) from the income computed in above.