undefined

Question 4 (answer both parts (a) and (b)): Abacus Limited has the following results for the 14 months to 31 December 2020. 1,150,000 220,000 31,500 Adjusted trading profit before deduction of capital allowances Capital allowance claimed: Year to 31 October 2020 2 months to 30 December 2020 Chargeable gains: Disposal on 16 March 2020 Disposal on 3 October 2020 Bank interest: 17,000 24,300 Received 3,500 4,200 Received Dividends: Received 1 November 2019 20,000 Received 1 November 2020 18,000 Gift Aid donations: Paid 31 August 2020 12,000 Accrued to 31 December 2020 4,000 Accrued bank interest was 3,000 on 31 October 2019, 4,000 on 31 October 2020 and 1,000 on 31 December 2020. Required: (a) Compute the company's total corporation tax liability for the 14-month period ended 31 December 2020, stating when the tax is required to be paid. 15 marks (b) Appraise UK corporation tax with respect to Adam Smith's canon of efficiency. 5 marks (Total marks for question 4: 20 marks) Question 4 (answer both parts (a) and (b)): Abacus Limited has the following results for the 14 months to 31 December 2020. 1,150,000 220,000 31,500 Adjusted trading profit before deduction of capital allowances Capital allowance claimed: Year to 31 October 2020 2 months to 30 December 2020 Chargeable gains: Disposal on 16 March 2020 Disposal on 3 October 2020 Bank interest: 17,000 24,300 Received 3,500 4,200 Received Dividends: Received 1 November 2019 20,000 Received 1 November 2020 18,000 Gift Aid donations: Paid 31 August 2020 12,000 Accrued to 31 December 2020 4,000 Accrued bank interest was 3,000 on 31 October 2019, 4,000 on 31 October 2020 and 1,000 on 31 December 2020. Required: (a) Compute the company's total corporation tax liability for the 14-month period ended 31 December 2020, stating when the tax is required to be paid. 15 marks (b) Appraise UK corporation tax with respect to Adam Smith's canon of efficiency. 5 marks (Total marks for question 4: 20 marks)