Question 1 (12%)+ REQUIRED:++ Calculate the Assessable profits of King's Company for the year of assessment 2020/21. < + + A proprietor Mr. Wong operated a trading business called King's Company in Hong Kong. The profit and loss account of the company for the year ended 31 March 2021 was as follows:+ $ Gross profit from trading business $2,200,000 + Dividend income 15,000 Foreign exchange gain (Note 1) 35,000 Interest income (Note ii) Less: Accounting fee 63.000 113,000+ 2,313,000+ 30,000 Business registration fee 2,250 Commission (Note iii) 45,000 Depreciation 220,000 Interest expenses (Note iv) 135,000 Overseas trips (Note v) 80,000 Rent (Note vi) 240,000 Salaries (Note vii) 1,080,000 Sundry expenses (Note viii) Tax (Note ix) Net profit 56,000 121,800 2,010.050+ 302.950 (viii) All Sundry expenses are tax deductible. < (ix) Tax + Profits tax of the company Salaries tax of Mrs. Wong (x) Depreciation allowance for 2019/20 carried forward < Motor Vehicles Office Furniture (30%) $160,667 (20%) $137,677 Air Conditioning (10%)+ $170,366+ Foreign exchange gain on Gain on conversion of bank deposit at year-end Loss on settlement of overseas' customers + $40,000+ ($5.000) $35.000+ + + " + " (ii) Interest income received + on Hong Kong dollar stand-alone deposit in a bank in Hong Kong on foreign currency deposit in an Australian Bank $37,000+ " $26,000+ $63.000+ " Commission made to Hong Kong agents $20,000+ $15,000+ + Commission made to overseas agents Commissions made without details of recipients (iv) Interest paid to A local bank for a business bank loan Mr. Wong for his personal loan $10,000+ $45.000 $65,000+ $70,000+ $135.000+ (v) Overseas trips + Mr. Wong's private trip to Europe A sales manager's business trips to Australia $36,000+ $44.000 + $80,000+ (vi) Rent of $240,000 was paid to an overseas company for using the property as the business premises. 2 (vii) Salaries paid to Mr. Wong Staff $350,000+ $730,000+ $1,080,000+ + + $87,000+ $34,800+ $121.800+ The following transactions existed during its accounting year ended 31 March 2021- Air conditioning sold for $30,000 (cost $65,000) < Bought desks and chairs for $50,000+ Motor vehicle sold for $80,000 (cost $75,000)