Accounts of XYZ LTD for the year 2021 Gross Profit Less Expenses: Salaries and Wages Donations Rent and Rates 425,000 62,500 40,000 25,000 Hospitality 47,500 Medical Expenses 21,000 Legal Expenses 72,500 Travelling and Transport 25,000 Insurance 12,500 Depreciation 10,000 Taxes Paid 19,000 Repairs and Maintenance 95,000 Office Expenses 60,000 Total Expenses Net Loss 540.000 115,000 Additional Information 1. After a tax audit carried out by officials of the Ghana Revenue Authority, it was detected that the accountant committed a casting error which resulted in the overstatement of the total expenses. Total expenses should have been GH490,000 instead of the GH540,000 stated. 2. Salaries and Wages include a monthly of GH3,000 paid to the Managing Director's son who just completed his MBA programme. Other senior members of staff with the same qualification and experience are paid monthly salaries of GH1,750. 3. Donations is made up of the following: UPSA Scholarship Fund - GH10,000; Korle Bu Children's ward - GH7,500; Upper Manya Krobo District Assembly Liberty Football Club - GH10,000 GH12,500, Page 1 of 2 4. Only 50% of the premises is used for the business operations, the rest is for private activities of the Managing Director. 5. The accountant confessed that 40% of the hospitality expenses were used for providing lunch for the Managing Director. 6. GH22,500 of the legal expenses was paid to a lawyer to defend the company for late payment of tax. 7. The gross profit includes an amount of GH6,000 net dividend received 8. Capital allowance granted for the year amounts to GH7,500 9. Half of the office expenses were spent on customer loyalty promotions; one quarter was used to purchase office stationery and the rest was spent on entertainment of private guests of the Managing Director. Required: Determine the net tax liability of Baba Ltd for the 2021 year of Assessment