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The audited financial statements for New Life Manufacturing for year - end December 3 1 , 2 0 2 2 , show an accounting profit

The audited financial statements for New Life Manufacturing for year-end December 31,2022,
show an accounting profit after tax of $16,500,000 after charging the following:
Depreciation $2,500,000`
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
1. Property Tax of $600,000 was paid for the property on which the companys factory is
located; $300,000 for the office premises and $100,000 for the CEOs home.
2. The insurance was paid for the factory and office premises.
3. Loss on disposal of fixed assets $350,000
4. Income Tax Refund of $700,000 was included as part of the entitys income.
5. The bad debt expense includes a general provision of $10,000 and a specific provision of
$30,000.
6. The company paid final ordinary dividends totaling $100,000.
7. Repairs and maintenance include $500,00 removing the office ceramic floor titles and
replacing it with wooden flooring.
8. Included in the companys total assessable income is exempt income of $50,000.
$16,500 relates to expenses incurred in earning this exempt income.
9. 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.
10. General expenses include $72,000 for the school fees of the CEOs son.
11. The capital allowances have been calculated at $1,330,500. Based on the items included
in the fixed asset schedule.
12. 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).
13. Assume capital allowance rate of 5% p. A for building/ leasehold improvements.
14. All amounts are in Barbadian currency.
Required
Calculate the Corporation Tax Payable for New Life using the Barbados Income Tax Act, or any
other relevant document explain the treatment of the items included or omitted from the
income tax computation. Your answer should include the reasons for all adjustments made.

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