Assignment No. 7 Question 1: Profits Tax Computation: Chargeable income and exemption Question 2: Badges of trade Question 1 Coral Limited carries on a manufacturing business in Hong Kong whose profits are chargeable to Hong Kong profits tax. For the financial year ended 31 March 2022, it reported an accounting profit of $7,530,000. This accounting profit was arrived at after taking into account the following income: Required: Compile the Hong Kong profits tax computation of Coral Limited for the year of assessment 2021/22 by using profits tax computation format below. Explain whether there are any profits tax adjustments on the income as shown in Notes 1 and 2 in the accounts of Coral Limited. [Note: For Assignment No. 7 -Ignore the profits tax adjustments on expenses/deductions] Question 1: Profits Tax Computation: Chargeable income and exemption Question 2: Badges of trade Question 2 Please explain the 'badges of trade' for determining whether a person carries on a trade in Hong Kong. Assignment No. 7 Question 1: Profits Tax Computation: Chargeable income and exemption Question 2: Badges of trade Question 1 Coral Limited carries on a manufacturing business in Hong Kong whose profits are chargeable to Hong Kong profits tax. For the financial year ended 31 March 2022, it reported an accounting profit of $7,530,000. This accounting profit was arrived at after taking into account the following income: Required: Compile the Hong Kong profits tax computation of Coral Limited for the year of assessment 2021/22 by using profits tax computation format below. Explain whether there are any profits tax adjustments on the income as shown in Notes 1 and 2 in the accounts of Coral Limited. [Note: For Assignment No. 7 -Ignore the profits tax adjustments on expenses/deductions] Question 1: Profits Tax Computation: Chargeable income and exemption Question 2: Badges of trade Question 2 Please explain the 'badges of trade' for determining whether a person carries on a trade in Hong Kong