Part A Full Tax Co. is incorporated and tax resident in Barbados. The audited financial statements for Full Tax Co. for year-end December 31, 2022, show an accounting profit after tax of $5,500,000 after charging the following: Depreciation $1,500,000` Tax for the year $500,000 Property Tax $1,000,000 Interest expense $15,000 Preference dividends of $40,000 Legal fees $1,110,000 Insurance of $750,000 Bad debts $40,000 Foreign Travel $20,000 Repairs and Maintenance $1,500,000 General expenses $600,000 Other Information 1. Property Tax of $600,000 was paid for the property on which the companys factory is located; $300,000 for the office premises and $100,000 for the directors home. 2. The insurance was paid for the factory and office premises. 3. The bad debt expense includes a general provision of $10,000 and a specific provision of $30,000. 4. The company paid interim ordinarily dividends totaling $100,000. 5. Repairs and Maintenance include for $500,000 removing the office ceramic floor titles and replacing it with wooden flooring. 6. Included in the companys total assessable income is exempt income of $50,000. $16,500 relates to expenses incurred in earning this exempt income. 7. Legal fees include: - $40,0000 in respect of recovery of commercial debts for Full Tax Co. - $10,000 in respect of recovery of commercial debts for Half Tax Co. The company was reimbursed this amount. - $15,000 in respect of recovery of commercial debts for One-Third Tax Co. The company was not reimbursed this amount. - $50,000 relating to the purchase of new subsidiary - $400,000 to increase the share capital of the company 8. General expenses include $72,000 for the school fees of the directors son. 9. The capital allowances have been calculated at $130,550. Based on the items included in the fixed asset schedule. 10. There was an increase in wages of $1,000,000 which qualifies for Employment Tax Credit (all other conditions to qualify for this credit was met). 11. The tax rates for general Barbados as follows: 12. Assume capital allowance rate of 5 % p. A for building/ leasehold improvements. 13. All amounts are in Barbadian currency. 14. As at the 31 December 2020, the company has prior years tax losses as follows: 2013 - $300,000 2015 - $5,000,000 2020 - $4,000,000 Tax losses can be carried forward for a maximum of 7 years and is restricted to 50% of the tax income in the current year.

Calculate the Corporation Tax Payable for Full Tax Co. for Y/A: 2022. Using the Barbados Income Tax Act or any other relevant document explain the treatment of the items included or omitted from the income tax computation. (20 marks)