Question
FULL TAX CO The audited accounts of Full Tax Co. for year-end August 31, 2014 show a profit of $2,300,000 after charging the following: $
FULL TAX CO
The audited accounts of Full Tax Co. for year-end August 31, 2014 show a profit of $2,300,000 after charging the following:
$ Depreciation 430,000
Legal fees 1,100,000
Donations 190,000
Bad debts 336,000
Foreign Travel 365,000
Other Information
a. Legal fees are as follows: Expenses in respect of recovery of debts, $100,000 Expenses related to the increase private share capital, $1,000,000 of a subsidiary company located in Barbados.
b. Full Tax Co. donated $90,000 to UTEC University and $100,000 to a HELP a private charity which registered and got approval under the Charities Act, on August 30, 2014 and was placed on the Commissioner of Taxes approved list on September 1, 2014.
c. The bad debt expense is a percentage of debtors at year-end
d. Foreign travel expense was a vacation package for the purchasing of marketing managers (who met with companys clients) and his family plane tickets.
e. Included in revenue is the item Refunds from Income Tax of $68,000
f. The capital allowances have been calculated at $1,352,500
1. Calculate the Corporation Tax Liability of Full Tax Co. for Y/A: 2014
Note: Show all workingd
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