Grand Canyon ltd which listed 24% of its issued share capital at the Nairobi Securities Exchange (NSE) in the year 2016 has presented the following summary income statement items for the year 2022:

	Ksh.000	Ksh.000
Sales		1,280,000
Opening stock	70,400
Purchases	612,500
Closing stock		53,100
Discount received		18,500
Specific bad debts recovered		14,800
Insurance recovery- Lorry written off after an accident		13,500
Dividends from Uzima ltd listed at NSE (gross)		5,700
Interest on fixed deposit account held at Citi Bank (net)		51,000
Interest from a bond issued by Wuyii China ltd-in China		74,500
Operating expenses	442,500
Net profit	385,700
	1,511,100	1,511,100

Additional information:

1. The opening has been undervalued by 22% and the closing stock has been overvalued by 18%

2. Operating expenses include depreciation amounting to ksh 48,000,000.

3. The operating expenses exclude discount allowed of ksh 34,000

Required:

Calculate the tax payable by the company for the year 2022

Answer rating: 100% (QA)

To calculate the tax payable by the company for the year 2022 we need to first determine the taxable ... View the full answer