The following purchases and sales were made by Pepo Limited (VAT No. !00012Y) during the first two weeks of January 2006. Prices shown are inclusive of VAT at the standard rate of 16 percent.

PURCHASES

SALES

Unit

Price per

Unit

Price per

Unit

Unit

Sh.

Sh.

January

1

100

1,400

10

1,800

2

20

1,800

5

50

1,800

7

75

1,600

10

20

1,800

12

-

50

2,000

175

150

There were no opening stocks at the beginning of the month.

The physical inventory confirmed that there were 25 units in stock as at 31 January 2006.

calculate the tax payable

a. 16552

b. 2760

c. 19310

d. 20,000