1) Growth Ltd.s Statement of Income for accounting purposes reflects a deduction of $26,000 for professional fees during its December 31, 2020 taxation year. This amount is comprised of the following:

Legal fees for a 10-year bank loan $11,000

Legal fees to defend a lawsuit for a failure to deliver goods on a timely basis 8,100

Legal fees related to the purchase of equipment 6,900

Given only this limited information, by what amount is Growth Ltd.s net income after tax (NIAT) for accounting purposes INCREASED to determine its income from a business (profit) for income tax purposes for its December 31, 2020 taxation year,? (2005 CPAO)

(a) $17,900

(b) $16,800

(c) $15,700

(d) $ 8,800