Combo Limited is a trading company, and has been selling LCD monitors to computer stores in Hong Kong and Taiwan for many years. Combo's profits and loss account for the year ended 31 March 2022 was as follows: Gross trading profits Add: Compensation received Interest income $ $ 7,270,000 380,000 150,000 7,800,000 Less: Expenses Bad debts 155,000 Copyright purchased from the parent company 800,000 Cash donation to Community Chest 550,000 Depreciation charge 600,000 Exchange differences General expenses 760,000 1,800,000 Repairs Taxation Net profit 520,000 680,000 (5,865,000) 1,935,000 Combo also provides you with the following additional information: (i) Compensation received: Compensation for permanent loss of trading stock Compensation for permanent damage to machinery 300,000 80.000 380.000 Interest income: Interest on HKSAR Government bond 30,000 Interest on Taiwanese dollars deposit with Bank of East Asia 120,000 150.000 (iii) Bad debts comprise: General provision for doubtful trade debt Loan to directors written off $ 35,000 30,000 Trade debt written off 90,000 155,000