The Directors of Total engineering Company Limited presented the following Profit and Loss for the year ended 31 December 2019: Kshs.

Revenues

Expenses:
Purchases
Wages
Carriage inwards
Rent
Insurance
Trade expenses
Repairs:
Building
Machinery
Advertising
Legal charges
Audit fees
Depreciation
Provision for doubtful debts
Debenture interest
Interim dividend
Proposed dividend
Net loss

30,780,000

24,000,000
2,320,000
370,000
300,000
190,000
100,000

300,000
56,000
254,000
80,000
70,000
3,017,000
104,000
600,000
400,000
731,000
2,112,000

The following additional information is provided:
1. Purchase returns and sales returns were Kshs.500, 000 and Kshs.700, 000 respectively. These were left out while preparing the trial balance.
2. Wages include Kshs.25, 000 per month paid to a “consultant” who helps the company whenever there is a problem with the VAT department. VAT of Kshs.560, 000 remains unpaid and the “consultant” promises to find a way of getting it written off. Full PAYE is deducted from his salary.
3. Trade expenses include an amount of Kshs.60, 000 travel expenses to Korea for the Director as part of the National Chamber of Commerce Trade and Industry promotion tour.
4. Repairs to machinery include small loose tools written off by Kshs.10,000
5. Bad debts which are specifically bad are Kshs.74,000
6. Capital allowances have been agreed at Kshs.2, 000,000.

Required: Compute the;
(a) Taxable profits for the year of income 2019. (13 Marks).
(b) Tax payable if any for 2019. Comment on the results. (4 Marks).
(c) The company intends to give the Director a company car in 2020. What are the tax implications?