Problem 10 - 3: The Income Statement with selective notes thereon of XYZ Ltd for the year ended on December 31, 2018 is as under: XYZ Ltd Income Statement For the year ended on December 31, 2018 Taka Net Sales 10,000,000 Less: Cost of Goods Sold 6,800,000 Gross Profit 3,200,000 Add: Gain on Sale of Building (Note 1) 1,200,000 4,400,000 Less: Administrative and Selling & Distribution Expenses (Note 2) 3,400,000 Net Profit 1.000.000 Other information: (1) The Cost of the Building was Taka 8,000,000 and the amount of accumulated depreciation up to the date of sale was Taka 2,700,000 and sold for Taka 6,500,000. (2) Administrative and Selling & Distribution Expenses total Tk. 3,400,000 includes: Salaries and Wages Tk. 1,562,000 Provision for Bad and Doubtful Debt Tk. 60,000 Fines and Penalties 125,000 Underwriting Commission 120,000 Rents, Rates & Taxes 80,000 Overseas Traveling Expense 1,100,000 Legal Charges 37,000 Cost of Issuing Shares 100,000 Incentive Bonuses 40,000 Depreciation Expense 116,000 Audit Fees 60,000 (3) Salary and wages includes Taka 180,000 as payment to employees for the year who failed to submit return within tax day and Taka 520,000 as payment classified as perquisites. (4) The fines and penalties are charged by a local court for involvement in illegal business transactions. (5) Oversees travelling expenses incurred for providing services to government where oversees travelling was a key requirement for the service. (6) Legal charges have been incurred for defending a suit for alleged breach of a trading contract. (7) Tax depreciation amounts to be Taka 80,000. Required: Compute the income from business or profession for the year ended December 31, 2018