13 (20 marks) SPACE Limited is a Hong Kong company carrying on a trading business in Hong Kong and all its profits are derived from Hong Kong. The income statement of the company for the year ended March 31, 2016 is as follows: $ $ Gross profit 25,000,000 Dividend received from a subsidiary in Hong Kong 404,000 25,404,000 Less: Audit fee 120,000 Bad debts (note 1) 350,000 Compensation (note 2) 140,000 Depreciation 450,000 Donation made to Community Chest 250,000 Interest (note 3) 155,000 Legal and professional fee (note 4) 70,000 Rent 2,500,000 Salaries and allowances 20,000,000 Staff welfare (note 5) 250,000 Sundries (note 6) Tax (note 7) Travelling (note 8) Net profit 190,000 360,000 350,000 25,185,000 219,000 Notes: 1 Trade debts written off. -customers whose addresses were known -customers whose identities were NOT disclosed 2 Compensation paid to landlord for early termination of lease of the old office 250,000 100,000 350,000 80,000 60,000 140,000 Penalty paid to clients for late delivery of goods 3 Interest paid to: - an individual director 35,000 -the subsidiary in Hong Kong for a loan to finance the purchase of trading stock 120,000 155,000 4 Legal fee paid for lease of new office 30,000 Professional fee paid to the tax representative for the preparation of profits tax return 40,000 70,000 5 Annual dinner Trip to Hong Kong Disneyland for staff 6 All sundry expenses were allowable. 100,000 150,000 250,000 10 7 This was the company's profits tax liability. 8 All traveling expenses were reimbursed to directors for their overseas business trips in attending conferences. 9 The assessor agreed with the company that depreciation allowances for the year of assessment 2015/16 is $1,300,000. Required: Calculate the profits tax payable, if any, by SPACE Limited for the year of assessment 2015/16. Ignore provisional profits tax and tax rebate or reduction, if any