1. Award: 15.00 points Meadows Enterprises Ltd. is a Canadian corporation located in Regina. The company operates a retail business that has shown consistent profits for several years. Cash generated from those profits has been used to acquire investments. The company prefers two types of investments: real estate and shares in other corporations. Unfortunately, in 2018 the investments resulted in some losses. A summary of the 2018 financial results is given below. Retail sales Cost of sales Gross profit Retail administrative expenses $1,435,000 (1,005,000) 430,000 (254,000) 176,000 Income from operations Other income (osses) Net loss from real estate rentals Net loss on the sale of shares of other corporations (29,000) 170.000) Net loss for the year The real estate investments include several small commercial buildings that are rented to retail tenants. in 2018, one of those tenants ceased operations, and a replacement tenant could not be found until the current year. That is the main reason for the $29,000 loss in real estate rentals. The net loss of $(170,000) on shares of other corporations arose from two sale transactions in 2018, which Sale 2 $ 13,000 (216.000) are summarized below. Sale 1 Selling price Original cost of shares Gain (loss) $96,000 (75.000) 21,000 (203,000) Both investments, which were in public corporations, had been owned for several years. An accountant has just completed Meadows 2018 tax return and has informed the president that Meadows owes income taxes for 2018. The president is upset by this and exclaims, That's impossible! Our company lost 23,000 dollars last year, so it can't owe income taxes! I know that the corporate tax rate for my company is 15%, and 15% of nothing is nothing." Required Calculate how much the company owes for 2018 income taxes Segment Amount Allowed Segment B subtotal Allowed Net Income for tax purposes and Taxable income Taxes Payable