Part B 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. Required Calculate the Corporation Tax Payable for New Life using the Barbados Income Tax Act, or any other relevant document explain the treatment of the items included or omitted from the income tax computation. Your answer should include the reasons for all adjustments made. Explain the treatment of tax losses in Barbados.