QUESTION $5[20$ MARKS$]$

Serobe $($Pty$)$ Ltd$,$ a manufacturing company in Botswana has the following income for the tax year ended $31$ March $2023$:

P

Income

Gross Profit $5,000,000$

Dividends received from local companies $40,500$

Profit from sale of noncurrent assets $80,000$

Decrease in provision for bad debts $20,000$

Interest from the bank $56,000$

$5,196,500$

Expenditure

Administration costs $1,250,000$

Bad debts $($Note $1)350,000$

Depreciation $550,000$

Salaries and wages $1,500,000$

Approved training expenditure $400,000$

$4,050,000$

Net Profit $1,146,000$

Additional information

$1.$ Bad debts are made up as follows:

Provision for general bad debts P$220,000$

Provision for specific bad debts P$230,000$

P$350,000$

$2.$ Total capital allowances P$250,000$

$3.$ Assessed loss from previous year P$320,000$

$4.$ Balancing allowance P$40,000$

Required:

Compute the tax liability of the company. $[20$ Marks$]$