Corp Tax driving me mental

Prezatch

I'v been staring at this question for over an hour now and can't understand a few parts of it. And of course the workings are missing from the solution (cheers ms. lecturer)

The pdf solution is here -

I'v no idea how the chargeable gain was calculated or the case V 'rental surplus'.
Also why aren't the staff part of lunches left as a deduction for staff entertainment expense? They are added back along with general customer entertainment in the solution. Big thanks to anyone who can solve it :pac:

Trading loss…………………(63,000) Note 1
Interest received (net amount)……………1,200 Note 2
Irish rental income…………………………8,000 Note 3
Capital allowances relating to a rented industrial building....(14,000) Note 3
UK rental income……………………………………………27,000 Note 4
Dividends from Irish resident companies (gross)……………26,300
Profit on disposal of investments………………………22,000 Note 5


(1)The trading loss has been computed having deducted the following expenses:

(i)Cost of taking suppliers to lunch (including € 1,500 for the company’s own staff).
3,200

(ii)Ordinary annual pension contributions for directors paid on 16th February 2009.
30,000

(iii)Gross amount of rents paid directly to a UK resident landlord in respect of a property occupied by the company.
9,000

(iv)Foreign exchange losses arising on trading transactions.
47,400

(v)The holiday costs of a shareholder – John O’Donnell – who is neither a director nor an employee of the company. The costs were paid on 12th April 2008.
12,000

(2)The interest was received on a €30,000 advance made to Charles O’Donnell (a 10% shareholder) on 1st January 2008 for a 5 year period at an annual interest rate of 5%.
(3)The Irish rental income is prior to adjusting for capital allowances and after claiming relief on bank interest of € 5,000 incurred prior to letting the industrial building for the first time.
(4)UK tax was not deducted from the rental income.
(5)On 1st June 2008 CRAFTS disposed of Government securities that cost € 12,000 in July 2000 for €15,000.
CRAFTS holds shares in MEGA Ltd., an Irish resident company, since January 1998 when the shareholding was acquired for €10,000. The shares are worthless since 2001 and on 1st July 2008 CRAFTS wrote down the investment to nil. During 2008 CRAFTS made a claim for loss relief and satisfied the Revenue Commissioners that the value of the shares had become negligible.
On 1st August 2008 CRAFTS disposed of Irish quoted shares for € 60,000. The shares had cost €31,000 when purchased by the company on 31st May 1997.
(6)CRAFTS paid gross amounts of dividends as follows:

1st March 2008 – out of profits of the year ended 31st December 2007 20,000
1st March 2009 – out of profits of the year ended 31st December 2008 5,000

(7)CRAFTS had no losses forward at 31st December 2007.
(8)The Corporation Tax liability of CRAFTS for the year ended 31st December 2007 was € 110,000.

Prezatch

Ok I figured this question out today with a clear head. If any of the other CAP2'ers have problems on this one just let me know