Alpha Gamma sole proprietor business has been in the business of financial advisory since year 2010 For the year ended 31 12 2021, its profit and loss account is as follows RM '000 RM '000 Service fees 3,750 Less Expenses Operating expenses 2,530 Payroll cost 320 Directors ' remunerations 142 Freig...

To compute the adjusted income for Alpha Gamma sole proprietor business for YA2021 we n ...

Alpha Gamma sole proprietor business has been in the business of financial advisory since year 2010.For the

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Question:

Alpha Gamma sole proprietor business has been in the business of financial advisory since year 2010.For the year ended 31.12.2021, its profit and loss account is as follows:

	RM'000	RM'000
Service fees		3,750
Less: Expenses:
Operating expenses	2,530
Payroll cost	320
Directors' remunerations	142
Freight and insurances	40
Utilities expenses	62
Depreciation	89
Entertainment of clients (related wholly to sales	15
	-----------	(3,198)
Net profit before taxation		------------ 552 ======

Additional information:

Freight and insurance:

Included in the above expenses is an amount of RM5,000 paid to Security Insurance Bhd, a company incorporated in Malaysia for insuring books imported from U.K. The tax authorities confirmed that this amount is eligible for double deduction.

Required:

Compute the adjusted income for the company for YA2021.