Sivuu TICIVO UCCI Palu. (11 Marks) TOTAL: 15 MARKS QUESTION THREE Mr Mulimi is a farmer based in the Mkushi Farm bloc and prepares his financials to September each year. For the tax year 2019/20, he incurred the following capital expenditure. Constructed the farm dwelling for employees 210,000 Bought a Tractor 860,000 Bought office furniture 107,000 Bought a Toyota Hilux Single Cab 665,000 41 Page 80,000 Stumping expenditure Digging a well Fencing the farm 6,500 48,500 TOTAL 1,977,000 The tax adjusted profit before deducting Capital Allowances for the tax year 2019/20 amounted to K1.1 Million. The profit was after charging depreciation for the year amounting to K201,500. Required. i. Calculate the final taxable farming profit chargeable on Mr Mulimi (12 MARKS) ii. Calculate the tax for the year 2019/20 (3 MARKS) TOTAL: 15 MARKS Sivuu TICIVO UCCI Palu. (11 Marks) TOTAL: 15 MARKS QUESTION THREE Mr Mulimi is a farmer based in the Mkushi Farm bloc and prepares his financials to September each year. For the tax year 2019/20, he incurred the following capital expenditure. Constructed the farm dwelling for employees 210,000 Bought a Tractor 860,000 Bought office furniture 107,000 Bought a Toyota Hilux Single Cab 665,000 41 Page 80,000 Stumping expenditure Digging a well Fencing the farm 6,500 48,500 TOTAL 1,977,000 The tax adjusted profit before deducting Capital Allowances for the tax year 2019/20 amounted to K1.1 Million. The profit was after charging depreciation for the year amounting to K201,500. Required. i. Calculate the final taxable farming profit chargeable on Mr Mulimi (12 MARKS) ii. Calculate the tax for the year 2019/20 (3 MARKS) TOTAL: 15 MARKS