Notes:
a. Legal fees are as follows:
i. Expenses in respect of recovery of debts \( \$ 100,000 \)
ii. Expenses related to the director's personal matter. \( \$ 1,000,000 \)
b. Full Tax Co donated \( \$ 90,000 \) to Dominica Infirmary and \( \$ 100,000 \) to Operation Youth Quake which are registered and approved under the Charities List.
c. The bad debt expense is a percentage of debtors at the end of year
d. Foreign travel expense was a vacation package for marketing manager' family plane tickets
e. Included in revenue is the item - Refunds from Income Tax of \( \$ 68,000 \)
f. The capital allowances have been calculated at \( \$ 1,352,500 \)
Required
1. Calculate the corporation tax liability for Full Tax Co for year ended 2024. Show all workings
Question 4 - [30 marks]
Financial Data for XYZ Ltd.:
1. Revenue:
- Sales: \( \$ 250,000 \)
- Returns and Allowances: \$5,000
2. Cost of Goods Sold (COGS):
- Beginning Inventory: \( \$ 30,000 \)
- Purchases: \$120,000
- Ending Inventory: \( \$ 25,000 \)
3. Operating Expenses:
- Salaries and Wages: \( \$ 50,000 \)
- Rent: \$15,000
- Utilities: \( \$ 3,000 \)
- Depreciation: \( \$ 10,000 \)
- Miscellaneous Expenses: \$2,000
4. Other Income and Expenses:
- Interest Income: \( \$ 1,000 \)
- Interest Expense: \( \$ 2,000 \)
5. Assets:
- Cash: \( \$ 20,000 \)
- Accounts Receivable: \( \$ 25,000 \)
- Inventory: \$25,000
- Equipment (Net of Depreciation): \$50,000
6. Liabilities:
