The directors of Total engineering Company Limited presented the following Profit and Loss for the year ended 31 December 2022:

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. 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.10,0005.Bad debts which are specifically bad are Sh.74,0006.

Capital allowances have been agreed at Sh.2, 000,000.

Required

(a)Taxable profits for the year of income 2022

(b)Tax payable if any for 2022 Comment on the results.

( c) The company intends to give the Director a company car in 2022. What are the tax implications?