The Inland Revenue Department will only tax the gains on the financial assets when realised. Fines, penalties and entertainment expenses are not deductible for tax purposes. Dividend income received is net of taxes. Assume a tax rate of 28%.

What would be the tax expense?

Revenue 23,200,000.00 Cost of Sales (17,350,000.00) Gross Profit 5,850,000.00 Other Income Rental Income 240,000.00 Dividend Income 200,000.00 Gain on investment shares held for trading 600,000.00 1,040,000.00 Distribution Costs Depreciation on vehicles 75,000.00 Impairment loss on vehicles 5,000.00 80,000.00 Administrative Expenses Directors' Fees 370,000.00 Audit Fees 40,000.00 Salaries and Wages 1,820,000.00 Bad Debts 20,000.00 Doubtful Debts 10,000.00 Depreciation on Buildings 60,000.00 Donation 35,000.00 Depreciation on Plant and Equipment 190,000.00 2,545,000.00 Other Expenses Accounting Fee 40,000.00 Bank Service Charges 10,000.00 Fines and Penalties 11,000.00 Entertainment Expenses 25,000.00 Distribution Expenses 245,000.00 Insurance 40,000.00 Advertising and Sales Promotion 59,000.00 430,000.00 Finance Costs Interest Expense 150,000.00 Profit Before Tax 3,685,000.00 Tax Expense