Question 1 (25 marks) ABC Club Limited owns a club house in Causeway Bay, which is used by members of the club as well as by non-members. It also provides many club activities. The following is a summary of its income and expenditure accourt for the year ended 31 March 2019: HK$ HK$ 14,800 40,000 54,800 60,000 Income Members' subscriptions: Voting members Non-voting members Entrance fees from voting members Receipts from bar and dining room: Voting members Non-voting members Non-members Sports facilities usage: Voting members Non-voting members Non-members Sauna facilities usage: Voting members Non-voting members Non-members 70,000 70,000 14.000 154,000 1,000 500 300 1,800 5,000 25,000 16.000 36,000 306,600 Expenditure Cost of annual dinner Repairs to club house Rates Administration expenses (deductible) Depreciation 8,000 25,000 8,000 100,000 100,000 Surplus 241.000 65.600 REQUIRED: (a) Briefly explain whether ABC Club Limited is liable to pay profits tax. (20 marks) (b) If ABC Club Limited is liable to pay profits tax, calculate the tax liability of ABC Club Limited for the year of assessment 2018/19