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7. Mr. Delroy Morgan is a supplier of marl and a haulage contractor who operates his business from premises which he owns in Waltham Park Road (he does not live on the premises). In the day to day running of the business Mr. Morgan's son, John, is employed full-time and receives a monthly salary of $95,000 which the CIT has agreed is commensurate with the services rendered. Mr. Morgan's summarised profit and loss statement at 31st December 2013 is as follows: ther Information Salaries: In addition to the information given above concerning Mr Morgan's son, also included in the salaries figure is $720,000 drawings for the year taken from the business by Mr. Morgan. Vehicle Repairs: The amount includes $800,000 on repairs to a front-end loader which Mr. Morgan bought second-hand in April at a cost of $2.5 million. After the repairs the equipment was put into service in July. c) Repairs to premises $1,300,000 is made up as follows: (i) The cost of demolishing a wall and extending the office space, approximately $500,000 (labour $280,000, materials $220,000 ) (ii) Extending the parking area for the vehicles, $400,000 (labour, 280,000 , materials 120,000 ) 7. Mr. Delroy Morgan is a supplier of marl and a haulage contractor who operates his business from premises which he owns in Waltham Park Road (he does not live on the premises). In the day to day running of the business Mr. Morgan's son, John, is employed full-time and receives a monthly salary of $95,000 which the CIT has agreed is commensurate with the services rendered. Mr. Morgan's summarised profit and loss statement at 31st December 2013 is as follows: ther Information Salaries: In addition to the information given above concerning Mr Morgan's son, also included in the salaries figure is $720,000 drawings for the year taken from the business by Mr. Morgan. Vehicle Repairs: The amount includes $800,000 on repairs to a front-end loader which Mr. Morgan bought second-hand in April at a cost of $2.5 million. After the repairs the equipment was put into service in July. c) Repairs to premises $1,300,000 is made up as follows: (i) The cost of demolishing a wall and extending the office space, approximately $500,000 (labour $280,000, materials $220,000 ) (ii) Extending the parking area for the vehicles, $400,000 (labour, 280,000 , materials 120,000 )