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JPC Ltd. is in the business of processing snack packs. For the year end December 31,2023 JPC L has a Profit before tax is $8.5

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JPC Ltd. is in the business of processing snack packs. For the year end December 31,2023 JPC L has a Profit before tax is $8.5 Million after charging/crediting the following: Additional information: a) Legal Fees include the following items: - Expenses related to the cost of acquiring fixed assets - $400,000 - Expenses in respect of the recovery of debts - $500,000 b) Bad debts are as follows: - A loan of $75,000 to a salesman who left without repaying it Required: Compute the company's income tax liability for the year of assessment 2023, as well as the tax payable by the company.(The company is a regulated company) (40 marks) $43,000 owed by Stan's Supermarket which sent confirmation that they went into bankruptcy. - The balance of $197,000 is a percentage of receivables at year end which is deemed to be bad. c) Interest payable at 31st December 2022 was $225,000 and at the end of 2023 is $140,000. d) Capital allowances: the disposal resulted in balancing charge of $60,000; other capital allowances for the year have been computed at $360,000. e) Tax deducted at source from Interest Income during the year was to $25,000. f) The company made an unused tax adjusted loss of $5,867,250 for the previous year of assessment and has been agreed with the Commissioner. g) Estimated Tax paid for year ended December 2023 amounted to $450,000. h) Included in foreign travel is $105,500 for the Managing Director's family. i) The company is a private company with Ordinary paid up shares of $1 each $4 million and 5% Preference Shares valued at $6 million. This is not included in the accounting profit. j) The company sold an asset for $500,000 and made a net profit on the disposal of fixed asset of $50,000. The amount is included in income. k) The company paid statutory payroll taxes of $500,000 on time and in full. JPC Ltd. is in the business of processing snack packs. For the year end December 31,2023 JPC L has a Profit before tax is $8.5 Million after charging/crediting the following: Additional information: a) Legal Fees include the following items: - Expenses related to the cost of acquiring fixed assets - $400,000 - Expenses in respect of the recovery of debts - $500,000 b) Bad debts are as follows: - A loan of $75,000 to a salesman who left without repaying it Required: Compute the company's income tax liability for the year of assessment 2023, as well as the tax payable by the company.(The company is a regulated company) (40 marks) $43,000 owed by Stan's Supermarket which sent confirmation that they went into bankruptcy. - The balance of $197,000 is a percentage of receivables at year end which is deemed to be bad. c) Interest payable at 31st December 2022 was $225,000 and at the end of 2023 is $140,000. d) Capital allowances: the disposal resulted in balancing charge of $60,000; other capital allowances for the year have been computed at $360,000. e) Tax deducted at source from Interest Income during the year was to $25,000. f) The company made an unused tax adjusted loss of $5,867,250 for the previous year of assessment and has been agreed with the Commissioner. g) Estimated Tax paid for year ended December 2023 amounted to $450,000. h) Included in foreign travel is $105,500 for the Managing Director's family. i) The company is a private company with Ordinary paid up shares of $1 each $4 million and 5% Preference Shares valued at $6 million. This is not included in the accounting profit. j) The company sold an asset for $500,000 and made a net profit on the disposal of fixed asset of $50,000. The amount is included in income. k) The company paid statutory payroll taxes of $500,000 on time and in full

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