Grey's Profit and Loss extract presented to Inland Revenue for the year ended 31 Dec 2012 was as follows: $ $ $ Gross Profit 40,000 Rent Received 2,500 Add Owing 450 2,950 Rent Received 3,000 Less Prepayment 1,500 1,500 Income from Tax exempt bonds 700 45,150 Less Expenses Insurance 1,000 Add Owing 200 1,200 Wages 3,000 Telephone 800 Less Prepayment 200 600 Political Donations 1,300 Entertainment Expenses 2,300 Depreciation 1,400 9,800 Net Trading Profit before tax 35,350 ===== Note: i) Inland Revenue's capital allowance is $1,600. ii) Assume a corporation tax rate of 40%. Required: 1. Calculate the taxable profits 2. Calculate the corporation tax 3. Prepare a Statement of profit or loss (extract) for the year ended 31 Dec 2013, assuming that the Net profit before tax for 2013 is $60,000