2. Selling expenses includes: a) $10,000 for an advertisement in a US newspaper distributed exclusively to Canadian customers. b) $18,000 for entertaining clients. c) $22,000 for yacht club dues for sales employees. Several BCCC clients are members of the local yacht club and sales are often negotiated there. d) $20,000 for tax-free automobile allowances paid to two sales employees. The first employee drove 6,000 employment kilometers. The second employee drove 20,000 employment kilometers. e) $70,000 in accrued bonuses. The bonuses were awarded for performance during the 2023 fiscal year. $40,000 of the bonuses will be paid on January 31 , 2024 and the remaining $30,000 will be paid on May 31, 2024. 3. Other expenses includes: a) $33,000 paid for landscaping around the office building. b) $6,000 in interest on a loan used to purchase new equipment. c) $2,900 in interest paid to the Canada Revenue Agency (CRA for late income tax instalments. d) $25,000 in interest and property taxes on vacant land that BCCC owns. The land is currently producing no income of its own. e) $100,000 reserve for a pending lawsuit. A former employee sued the company for wrongful dismissal in the 2023 fiscal year. The company's legal team has determined it is likely that the employee will win the lawsuit and $100,000 will be paid. Thus, the reserve has been accrued to cover the lawsuit damages. f) Loss on disposal of assets of $150,000. 4. The UCC balances as at October 1, 2022 were: a) Class 83,200,000 b) Class 10$780,000 c) Class 13 - $3,750,000 d) Class 53 - NIL 5. BCCC had the following capital asset additions and disposals during the year: a) Manufacturing equipment having a cost of $630,000 was sold for $55,000. b) The Class 13 balance relates to a long-term lease on a warehouse for 5 years with an option to renew for a further 5 years. The original cost of the leasehold improvements two years ago, when the lease was entered into, was $5,000,000. In 2023, BCCC made additional improvements of $800,000. For accounting purposes this cost was capitalized (not expensed in the income statement). c) BCCC began outsourcing its deliveries to third parties as a means of cost reduction. This resulted in the entire fleet being sold off for proceeds of $370,000. The trucks originally cost $900,000 and there are no other assets remaining in the relevant CCA class. d) BCCC acquired $500,000 new furniture and fixtures for its retail locations. Old fixtures originally costing $220,000 were sold for $180,000. e) The company purchased the Chief Operating Officer an automobile for $70,000 plus 13% HST to enable her to travel between the BCCC's retail locations, its office, and its warehouse. Required: For the year ended September 30, 2023, determine business income for tax purposes for Bean Counter Coffee Co. Provide a list of items which were not included in your calculation because the tax treatment is the same as that provided in the income statement. The following financial information has been provided for Bean Counter Coffee Co. (BCCC, a Canadian public corporation) for its September 30, 2023 year-end. Additional Information and transactions during 2023: 1. General and Administrative expenses includes the following items: a) $15,000 in political contributions. b) $60,000 for the cost of food and entertainment for the annual Holiday party. All employees are invited to the party. The cost is less than $100 per employee and, therefore, is not included as a taxable benefit for the employee. c) $20,000 for private health services plans for employees. d) $1,500 for premiums for life insurance on the life of the CEO. BCCC is the beneficiary of the policy. The policy required as collateral for the company's operating line of credit and the policy is assigned to the bank. e) $20,000 in legal, accounting, and printing costs with respect to the issue of a new class of preferred shares. f) $8,000 in legal fees for preparing contracts in relation to the sale of inventory. g) $700 in legal fees for making annual corporate filings. h) $50,000 in accounting fees for the annual audit. i) $43,000 of Bad Debts Expense, $32,000 relates to an increase in the allowance for doubtful accounts balance from September 30, 2022 to September 30, 2023 and $11,000 relates to specific uncollectable accounts that were written off at year end. j) \$6,000 in appraisal fees to determine the replacement cost of the business' assets. The appraisal was conducted as part of BCCC's annual fire and theft insurance requirements