The published accounts of a United Kingdom manufacturing company for a particular

year showed the following:

(a) operating profit of 5,000,000

(b) 10% depreciation on assets valued at 1.5 million

(c) interest of 5% on a loan stock with a nominal value of 2 million

(d) entertainment expenses of 300,000

(d) net investment income of 180,000 from dividends on ordinary shares of other

United Kingdom companies.

Assuming that:

1. the tax authority calculated that the capital allowances for the year came to

400,000

2. the tax authority judged that only half of the company's entertainment expenses

were "allowable"

3. the first of the accounting year fell into a financial year in which corporation tax

was 31%, and the remainder into a financial year in which corporation tax was

30%,

calculate the company's total corporation tax bill for that accounting year.

Ehcample 2.3.3. A certain US. life ofce conducted an investigation into the mortality of the holders of its "smoker\" and \"nonsmoker\" life assurance policim. The following figures refer to medically er-camined lives (males and females combined). smokers nonsmokers actual expected actual expected deaths deaths deaths deaths The \"expected deaths\" were obtained on the basis of the 1955313 Select Basic Table; that is1 the expected deaths in respect of a given sea:1 age and duration were obtained by multiplying the central exposed to risk by the appropriate central death rate {according to the standard table}.| and then aggregating over all smokers and nonsmokers respectively. Assume that the force of mortality of smokers is 1'11 times the force of mortality of the standard table (for the same age and duration)1 and that the corresponding factor for nonsmokers is 1'12. {i} Using a 5% signicance level1 tat the null hypothesis that oil = :22. {ii} Calculate the p-value of the test-statistic used in (i). {iii} Find estimated standard deviations of 21 and d2. {iv} Find an approximate 95% condence interval for {11 1'12. Example 2.7.1. {i} Dene the term Area. Comparability Factor. {ii} {a} The following table shows the population enumerated at a census on 39th June 1932 in a certain country which conducts censuses every ten years, and also in a certain district, B, within that country, together with the numbers of deaths during the census year for the whole country. Age-group COUNTRY DIETHICT B {age last No. of birthday} Population deaths Population 5, 1'99 ,999 599,999 10,500,000 1,000,000 5,500,000 550,000 2,010,000 250,000 25,000,000 305,010 2,500,000 The National Health Service of the country distributes money for 1939 to the various districts in proportion to the quantity FszSMR where P denotes the total estimated mid-year population in the district in 1933 and 3MB denotes the estimated 3MB of the district in 1933, using the whole country in the most recent census year as the standard population. Tb estimate the SMR of each district in non-census years, the National Health Service uses Area Comparability Factors. Show that F is proportional to HKAUF where H is the total number of deaths in the district in 1933, and ASP is the Area, Camparabiiity Factor of the district