Question Three:

Matendo Properties Ltd owns the following residential houses rented out to various persons. T he following information was reported for the year end 30th June 2020

Property location	Monthly rent per unit	Monthly expenses per unit	No. of units
Plot 7 Nasser road	400,000	151,000	6
Plot 6 Jinja road	350,000	172,000	4
Plot 7 Wilson road	200,000	62,000	3
Plot 4 William street	250,000	76,000	8

During the year, the following transactions took place; -

2 units in Plot 4 William Street were vacated for three months.

A donation from rents of shs. 600,000/= was made to Glad foundation, which takes care of street children.

Security costs of shs. 500,000/= for the property for the year was not included in the total expenses for the year.

Provisional tax payment of 2 installments each shs. 156,000 had been made.

Required:

(a) Compute Matendo Properties Ltd taxabl e income and tax liability for the year ended 30th June 2020. (1 5 Marks)

(b) Assuming the above information was for Matendo Juliet the Accountant of Matendo Properties Ltd would her tax liability be of any difference? Justify. (10 Marks)