You are a Tax Consultant for Freddy $($Pty$)$ Ltd$.$ The Company has provided you with the following information for the year ended $31$ October $2017.$

P P

Gross Profit $2,800,000$

Interest income $536,000$

Local dividends $220,000$

BSB Interest received $40,000796,000$

$3,596,000$

Depreciation $625,000$

Expenses $1,800,000$

Wages and Salaries $945,7703,370,770$

Net Profit $225,230$

Included in the expenses are the following:

P

General provision for bad debts $860,000$

Traffic fines $10,155$

End of year Staff Christmas party $40,000$

Donation to a political party $150,000$

Gifts of Calenders to customers $18,000$

Specific provisions for bad debts $159,105$

Registration of trade mark $100,540$

Legal fees $$ land territorial rights dispute $45,350$

Interest for late payment of VAT $10,350$

Application for a new Trading license $6,500$

Sundry Expenses $400,000$

a$.$ The capital allowances on plant and machinery have already been calculated at P$560,000.$

b$.$ The company received the BSB interest from the money invested in its BSB account.

c$.$ Tax of P$43,028$ was withheld from local bank interest received of P$436282.$

d$.$ The director uses the company$$s luxury Mazda $6$ for $100\%$ of his private journeys.

Required

a$)$ Calculate the trading chargeable income and the tax payable for the financial year ended $31$ October $2017.(20$ marks$)$