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  3. big tiger insurance ltd presented the following in

BIG TIGER Insurance ltd presented the following information relating to its life insurance business for...

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Question

Accounting

BIG TIGER Insurance ltd presented the following information relating to its life insurance business for the year 2023:
Ksh 000
Premiums received
7,610,000
Premiums returned to policyholders
847,000
Premiums received on re-insurance contracts
656,000
Actuarial surplus transferred to shareholders
540,000
Premiums receivable; b/d
112,000
Premiums receivable; c/d
133,000
Bonus utilized in reduction of premiums
64,000
Management expenses
1,674,000
Premiums transferred on re-insurance
107,000
Required:
Calculate the taxable income from the life business of the insurance company.
Question 9Answer
A.
Ksh 740,083,750
B.
Ksh 939,960,000
C.
Ksh 708,828,750
D.
Ksh 937,960,000

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