1. The directors of Apex Company Limited presented the following Profit and Loss for the year ended 31 December 2020:

	Sh.
Revenues Sales Interest on Government Securities (Gross) Expenses: Purchases Wages Carriage inwards Rent Insurance Trade expenses Repairs: Building Machinery Advertising Legal charges Audit fees Depreciation Provision for doubtful debts Debenture interest Interim dividend Proposed dividend Net Loss	30,780,000 50,000 30,830,000 24,000,000 2,320,000 370,000 300,000 190,000 100,000 300,000 56,000 254,000 80,000 70,000 3,017,000 104,000 600,000 400,000 731,300 32,892,300 2,062,300

The following additional information is provided:

1.	Purchase returns and sales returns were Sh.500,000 and Sh.700,000 respectively. These were left out while preparing the trial balance.
2.	Wages include Sh.25,000 per month paid to a consultant who helps the company whenever there is a problem with the VAT department. VAT of Sh.560,000 remains unpaid and the consultant promises to find a way of getting it written off. Full PAYE is deducted from his salary.
3.	Trade expenses include an amount of Sh.60,000 travel expenses to Korea for the Director as part of the National Chamber of Commerce Trade and Industry promotion tour.
4.	Repairs to machinery include small loose tools written off by Sh.10,000
5.	Bad debts which are specifically bad are Sh.74,000
6.	Capital allowances have been agreed at Sh.2,000,000.

Required:

(a) Taxable profits for the year of income 2020 and tax payable if any (12 marks)