a. You a trainee accountant; working in a tax department and havebeen asked to correct a corporation tax computation. The computationhas been prepared by the director of Kraken Ltd for the year ended 31March 2020 and contains a substantial number of errors. Kraken Ltd Corporation Tax Computation for the year ended 31stMarch 2020. Trading Profit (w1) 403,500 Interest received on loan (w2) 34,500 438,000 Corporation tax (438,000 at 19%) 83,220 Workings 1. Trading Profit Operating profit before interest and taxation 291,450 Depreciation 17,860 Donations to a political party 300 Qualifying charitable donations 1,200 Accounting fees 2,750 Legal fees (issue of loan used to finance tradingactivities) 6,600 Entertaining suppliers 3,010 Entertaining employees 1,475 Gifts to customers (mugs printed with Kraken Ltd) 680 Gifts to customers (fruit gift baskets) 1,750 Capital allowances (w3) 76,425 Trading Profit 403,500 2. Loan interest received Loan interest receivable 35,500 Accrued at 1st April 2019 11,500 Accrued at 31st March 2020 (12,500) Loan interest received 34,500 The loan was made for non-trading purposes.

3. Capital allowances Main Pool Motor Car SpecialRate Pool Allowances WDV b/f 14,600 15,200 Additions Machinery 48,200 Motor car (1) 16,750 Motor car (2) 17,500 79,550 AIA (79,550) 79,550 Disposal proceeds (10,500) 4,700 Balancingallowance (4,700) (4,700) WDA 18% (3,150) X 50% 1,575 WDA c/f 0 14,350 76,425 Total Allowances 1. Motor car (1) has a CO2 emission rate of 90 grams perkilometre. 2. Motor car (2) has a CO2 emission rate of 120 grams perkilometre. The event manager uses the motor car, and 40% ofthe mileage is for private journeys. 3. All the items included in the special rate pool as of 1st April2019 were sold for 10,500 during the year ended March 2020.The original cost of the items was 18,200. Prepare a corrected version of Kraken Ltds corporation tax for the yearended 31st March 2020. Note. Your calculations should start with the operating profit before interestand taxation figure of 291,450, and you should indicate by the use ofzero (0) any items in the computation of the trading profit for whichthere is no adjustment required.