The details for the period to year ended December $31$st$,2020$ are as below:

Net Profit after adding back all disallowed expenditures $($save for the ones mentioned in the notes below!$)$ is $$15,000,000.$

$1.$ Capital allowances and charges were computed as follows: Annual Allowances, $$1,000,000,$ Balancing Allowances, $$900,000,$ and Balancing Charges, $$500,000$

These amounts do not include any allowances on assets acquired in the year unless so stated.

$2.$ The Company is developing a process which it hopes to patent in a few years. It has commenced intense Research and Development activities. The capitalized cost of such activities for the current year amounted to $$1,750,000$ million and was charged to Insurance.

$3.$ The Company$$s directors declared a dividend of $$0\mathrm{.}10$ per ordinary share in March $2020$ and paid a dividend on its ordinary shares of $$0\mathrm{.}09$ per share for the year. The amount of this dividend was included in Miscellaneous expenses. The Company has $8,000,000$ fully paid shares.

$4.$ Tax deducted from Interest Income amounted to $$375,000.$

$5.$ Miscellaneous expenses include estimated tax of $$550,000,$ paid with respect for the current year of assessment.

$6.$ The Company had plant and equipment which it purchased four years ago at a cost of $$1,000,000,$ depreciating it at $10\%($straight line basis$)$ for all of its useful life. The asset was sold after four years, that is$,$ in the current year of assessment, for $$250,000.$ The amount gained$/$lost on this disposal was correctly treated from an accounting perspective. The current depreciation charge and relevant capital allowances have already been included.

$7.$ The Company has a main, large contractor who specializes in construction among its clientele. The Company earned $$10,000,000$ under contracts for services with this contractor. This amount is included in the gross operating income. Two Towers has the certificate of tax suffered on the $$10,000,000.$

$8.$ Depreciation includes $$850,000$ being the cost of plant and equipment acquired in the year and used for the manufacture of goods. This amount was already added back correctly to the profit.

$9.$ It was decided that the aesthetic appeal of the accounting office would be enhanced by installing decorative, moveable partitions made of solid, oaken wood, a similar material to the rest of the office building and with a similar expected useful life for tax purposes. The partitions cost $$605,000$ and this amount was included in General Expenses.

$10.$ Capital Allowance rates are as per the provided table below. None of the items acquired in the year would have their capital allowances included in the amounts provided at note $1$ above. In all cases, depreciation on these assets so acquired is to be ignored.

Required:

$($a$)$ Prepare the Adjusted Accounting Profit and Loss Statement for Y$/$A $2020.(15$ marks$)$

$($b$)$ Calculate the tax liability and tax payable of the Company for Y$/$A $2020.(10$ marks$)$

$($c$)$ Prepare the capital allowances schedule for the assets acquired in the year ended December $31$st $2020,$ using a tabular format. $(10$ marks$)$

APPENDIX for Company Taxation Question

NB: Annual Allowances are to be calculated on the straight line basis.

Plant & Machinery:

Initial All.

Annual All.

Machinery directly used in the production of primary products or the manufacture or automated packaging of goods

$25\%$

$12\mathrm{.}5\%$

Automatic data processing equipment, calculators, cash registers and other equipment falling within $($Tariff Headings $84\mathrm{.}70$ and $84\mathrm{.}71),$ as well as parts$/$accessories thereof

$25\%$

$20\%$

Equipment falling with Tariff Headings $84\mathrm{.}69,84\mathrm{.}72,$ as well as parts$/$accessories thereof. Telephones and other equipment falling within Tariff Heading $85\mathrm{.}17,$ as well as parts and accessories thereof

$0\%$

$20\%$

Other plant & machinery $($excluding Motor Vehicles$)$

$0\%$

$12\mathrm{.}5\%$

Motor Vehicles:

a$)$ Private motor vehicle based on a cap of US$$35,000$

$0\%$

$12\mathrm{.}5\%$

b$)$ Trade vehicle

$0\%$

$20\%$

Buildings:

Initial All.

Annual All.

Initial Allowance:

Industrial buildings

$20\%$

See below

Non$-$industrial buildings

$0\%$

See below

Annual allowance $$ All Commercial Bldngs$.$

a$)$ Buildings & structures primarily constructed of concrete, steel, brick, stone, cement or similar materials

$0\%$

$4\%$

b$)$ Buildings & structures primarily constructed of other inorganic materials such as galvanized iron, corrugated metal or similar materials

$0\%$

$10\%$

c$)$ Buildings & structures primarily constructed of wood or other organic materials

$0\%$

$12\mathrm{.}5\%$

Initial Allowance

Annual Allowance

Research & Development:

n$/$a

$20\%$