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

Property Tax of $$600,000$ was paid for the property on which the company's factory is

located; $$300,000$ for the office premises and $$100,000$ for the CEO's home.

The insurance was paid for the factory and office premises.

Loss on disposal of fixed assets $$350,000$

Income Tax Refund of $$700,000$ was included as part of the entity's income.

The bad debt expense includes a general provision of $$10,000$ and a specific provision of

$$30,000.$

The company paid final ordinary dividends totaling $$100,000.$

Repairs and maintenance include $$500,00$ removing the office ceramic floor titles and

replacing it with wooden flooring.

Included in the company's total assessable income is exempt income of $$50,000.$

$$16,500$ relates to expenses incurred in earning this exempt income.

Legal fees include:

$$155,000$ in respect of recovery of commercial debts for New Life Manufacturing.

$$40,000$ in respect of recovery of commercial debts for the head office in Cayman. The

company was reimbursed this amount.

$$415,000$ in respect of recovery of commercial debts for the subsidiary company in the

United States. The company was not reimbursed this amount.

$$500,000$ relating to the purchase of new company that will be located in Barbados.

General expenses include $$72,000$ for the school fees of the CEO's son.

The capital allowances have been calculated at $$1,330,500.$ Based on the items included

in the fixed asset schedule.

There was an increase in wages of $$2,000,000$ which qualifies for Employment Tax

Credit $($all other conditions to qualify for this credit were met$).$

Assume capital allowance rate of $5\%$ p$.$ A for building$/$ leasehold improvements.

All amounts are in Barbadian currency.