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 $$600,000$ was paid for the property on which the company$$s factory is

located; $$300,000$ for the office premises and $$100,000$ for the CEO$$s 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 $$700,000$ was included as part of the entity$$s 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 company$$s total assessable income is exempt income of $$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 $$72,000$ for the school fees of the CEO$$s 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.