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Question 3 (35 marks) Impractical Education Limited CIEL'), a Hong Kong incorporated company, provides professional teaching services to variouIS organizations and clients. IEL's statement of profit or loss for the year ended 31 December 2016 is as follows: Note S Income Service income Interest income Profit on disposal of fixed assets 11.250,000 2 27,000 5,000 1.282,000 Expenses 300,000 50,000 90.000 59,000 3,500 20,000 6 (1,000) 19,000 11,000 130.000 Salaries and wages Legal and professional fees Provident fund Insurance Bank charges and interest Exchange gain Travelling costs-overseas Printing and stationery Provision for accounts receivables Donations to Community Chest Sundry expenses 7 859,000 751,000) 531,000 Profit before tax The following notes provide further details of IEL's operations during the year. During the year, IEL gave two seminars in Singapore, for which it received a total remuneration of $150,000. The remuneration covered learning materials, seminar facilitators and other teaching- related equipment. The travel costs from Hong Kong to Singapore for the facilitators totalled $19,000. 1 2 Interest income comprises the following i$20,000 from a USS fixed deposit placed with HSBC, New York branch $2,000 from a HKS savings account placed with HSBC, Hong Kong branch $5,000 from local customers who were late in settlements ii iii Question 3 (35 marks) Impractical Education Limited CIEL'), a Hong Kong incorporated company, provides professional teaching services to variouIS organizations and clients. IEL's statement of profit or loss for the year ended 31 December 2016 is as follows: Note S Income Service income Interest income Profit on disposal of fixed assets 11.250,000 2 27,000 5,000 1.282,000 Expenses 300,000 50,000 90.000 59,000 3,500 20,000 6 (1,000) 19,000 11,000 130.000 Salaries and wages Legal and professional fees Provident fund Insurance Bank charges and interest Exchange gain Travelling costs-overseas Printing and stationery Provision for accounts receivables Donations to Community Chest Sundry expenses 7 859,000 751,000) 531,000 Profit before tax The following notes provide further details of IEL's operations during the year. During the year, IEL gave two seminars in Singapore, for which it received a total remuneration of $150,000. The remuneration covered learning materials, seminar facilitators and other teaching- related equipment. The travel costs from Hong Kong to Singapore for the facilitators totalled $19,000. 1 2 Interest income comprises the following i$20,000 from a USS fixed deposit placed with HSBC, New York branch $2,000 from a HKS savings account placed with HSBC, Hong Kong branch $5,000 from local customers who were late in settlements

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