The audited accounts of Wilo Ltd. for the year-end 31^st December 2020, show a loss of $6,800,000 after charging the following:

$

Depreciation 1,750,000

Legal fees1,600,000

Donations2,000,000

Bad debts2,300,000

Foreign travel1,300,000

Other Information:

a)Legal fees are as follows:

Expenses in respect of recovery of debts, $400,000

Expenses related to the increase of share capital, $1,200,000

b)The Bad debt expense is a percentage of debtors at year-end

c)The company made contributions of $800,000 to the University of the Commonwealth Caribbean and $200,000 to a football Club which has not registered under the Charities Act, 2013.

d)Foreign travel expense was a vacation package for the purchasing manager's family.

e)Included in revenue is the item - Refunds from Income Tax- $150,000

f)The capital allowance has been calculated at $600,000

g)The company is a private company with Ordinary paid up shares of $1 each $10 million and 10 % Preference Shares valued at $8 million. This is included in the accounting loss.

h)Net profit on the disposal of fixed assets during the year was $150,000 and is included in income.

i)Interest payable at 31 December 2019 was $200,000 and at the end of the current year is $500,000.

Compute the adjusted profit/loss for tax purposes and the tax liability for 2020 at 25%.