- + A' Read aloud Draw Highlight Erase Question 4 (11 marks) Adventure Place Inc. had the following accounting income for the year ended December 31, 2019: Revenue Cost of goods sold Gross profit Operating expenses Amortization Miscellaneous expenses Operating income Gain on sale of investments Accounting income $1,725,000 1,185,000 540,000 (265,000) (98,000) (76.000) 101,000 23.000 $ 124,000 Included in operating expenses are: $9,500 in meals and entertainment expenses related to client marketing $7,800 for membership in a local golf club, which is used to bring in clients $20,000 in corporate income tax instalment payments Included in miscellaneous expenses are: $4,800 in legal costs paid as part of a working capital loan obtained during the year $5,600 for donations to charities $1,400 in interest and penalties on late income taxes $700 in interest on late municipal tax payments At the beginning of 2019, Adventure Place Inc. had undepreciated capital cost balances of: At the beginning of 2019, Adventure Place Inc. had undepreciated capital cost balances of: Class 1 building used more than 90% for office space, acquired in 2009 $348,670 Class 8 small tools and equipment - $267,780 Class 10 vehicles - $98,413 During the year, $25,600 in small tools were purchased for use in regular operations. Two Class 10 vehicles were disposed of during the year for proceeds of $17,500 each. Each of the vehicles had an original cost of $30,000. Investments with a cost of $60,000 were sold during the year for $83,000. Adventure Place Inc. had a net capital loss carryforward balance of $52,400 at the beginning of the year. Required: Beginning with accounting income, and adjusting as needed, calculate the minimum net income for tax purposes and taxable income for Adventure Place Inc. for 2019. (11 marks)