11 1 pts The income statement for Carew Ltd shows the following for the year ended 31 December 2020. Gross profit 2,750,000 from trading Interest income Rental 2,000 25,000 income 3,900,000 Depreciation 89.000 Entertaining and promotional 7,420 gifts (note 1) Research and development 126,500 (note 2) Warehousing and 227.900 distribution Motor 57,900 expenses Miscellaneous 12,000 (note 3) tax 3,225,280 Note 1: Entertaining includes 6,250 for a client Christmas party with 50 attendees Note 2: all R&D expenditure is eligible for RDEC Note 3: includes a 5,500 QCD Note 4: included in profit before tax is an amount remitted from an overseas branch of 25,000 which has had 5,000 of local tax deducted. The finance director considers that DTR could be claimed. Carew Ltd had a tax written down value of its general pool of 164,500 at 1 January 2020 and made purchases of plant and machinery of 68,500 during the year. Included within that is an amount for 12,500 for a piece of machinery that has a lifespan of two years. Required: 1. Prepare the capital allowances for the year ended 31 December 2020 (4 marks) 2. Prepare a corporation tax computation for Carew Ltd for the year ended 31 December 2020 (6 marks) 3. Explain how a thinly capitalised company must seek to reduce its Corporation Tax payable (2 marks)