Question 1 (23 marks) Pine Ltd is a Hong Kong incorporated company engaged in the buying and selling of natural wood furniture that are sourced globally. The accounts of Pine Ltd are made up to 31 March. The drafted trading and profit and loss accounts of Pine Ltd for the year ended 31 March 2022 is as follows: Sales $ 5,620,000 Less: Cost of goods sold Gross profit Add: Dividends received from share investments (note 1) Profit from trading of shares (note 2) 3.372,000 2,248,000 180,000 125,000 Interest received (note 3) Recovery of bad debts Less: Expenses 52,000 41,000 2,646,000 Loss on disposal of office furniture (note 4) 10,000 Donation to the Community Chest of Hong Kong 150,000 Depreciation 237,000 Legal fee (note 5) 60,000 Purchase of office furniture 140,000 Office refurbishment 210,000 Other allowable expenses 380,000 Profit for the year 1.459.000 Note 1 Dividends received from share investments Dividends from shares quoted on the Hong Kong stock Exchange Dividends from shares quoted on the London stock Exchange S 80,000 100,000 180,000 Note 2 Profits from trading of shares $ Profits from trading of listed shares on the Hong Kong Stock Exchange Profits from trading of listed shares on the London Stock Exchange 30,000 95.000 125,000 Note 3 Interest received S Interest on USS deposit placed with the Hang Seng Bank in Hong Kong Interest on Tax Reserve Certificate 44,000 8.000 52,000