Company A recorded a profit before tax of $2,500,000 for the year ended 31 December 20x3. The tax rate for 20x3 was 24% while that of 20x2 was 22%. Deferred tax liability as at 31 December 20x2 was $26,400. (a) On 1 January 20x1, Company A purchased plant and machinery costing $120,000. The useful life of the plant and machinery was five years, but the capital allowances were to be claimed over a three-year period. (b) On 1 July 20x2, Company A purchased specialized equipment costing $150,000. The useful life of the equipment was five years from the date of acquisition. However, for tax purposes, capital allowances were claimed in full during 20x2. (c) Company A completed the development phase of a new drug on 1 January 20x2, which amounted to $50,000. The expenditures were not deductible for tax purposes but were deemed to have an economic useful life of five years for accounting purposes. (d) The movement in the provision for impairment losses is as follows: Balance at 1 January. Expense.. Utilization... Balance at 31 December. 31 December 20x3 $55,000 30,000 (50,000) $35,000 Impairment losses were allowable for tax purposes in the period of utilization. (e) Dividends received during 20x3 amounted to $50,000 while dividend income for 20x3 was $60,000. Dividends receivable as at 1 January 20x3 were $20,000. Dividend income was taxed when received. (f) Unearned revenue balance arising from service fees collected in advance as at 31 December 20x3 was $14,000. Cash received during the year in respect of unearned revenue was $32,000. Earned revenue from service fees for 20x3 was $30,000. Service fees were taxable during the year when the proceeds were received. (g) Disallowed items are as follows: Entertainment expenses. Donations to non-qualifying charities Disallowed transport expenses... (h) Tax-exempt income and reliefs granted are as follows: Tax-exempt income. Double-deductions. $ 9,600 9,500 13,000 $14,000 65,000 Required: 1. Prepare the tax computation to determine the tax payable for the year ended 31 December 20x3 based on the above information. 2. Determine the items and amounts of permanent differences for the year ended 31 December 20x3 based on the above information.