ABC Co. is a Canadian controlled private corporation owned by Ms. A. Ms. A is the president of the company. Its taxation year ends on December 31. For the current year, Ms. A has calculated ABC Co.s Net accounting income (after Income tax expense) of $250,000 using generally accepted accounting principles.

In preparation of a reconciliation to calculate ABC Co.'s net business income for tax purposes, indicate each of the following items effect as follows:

• An addition to or inclusion in Business income should be entered in the box as a number (e.g., 1000, do not use any other signs).

• A deduction from Business income should be entered in the box as a negative number (e.g, -1000, do not use any other signs/brackets).

• If the item would have no effect on the calculation of Business income, enter the number 0 in the box (e.g., do not use any other signs/words).

1. The following expenses were included in the companys accounting expenses of the current year:

Income tax expense......................	$32,000	..
Golf club membership fees..............................	14,000	..
Amortization expense...........................	55,000	..
Business meals and entertainment...............................	28,000	..
Financing fees to issue shares (show its net effect)...............................	10,000	..
Advertising on a US television station (Directed at New York market)......	17,000	..
Loss from theft (Not uncommon in this business)..................................	8,000	..
Purchase of furniture for business............................	26,000	..
Legal fees for likely lawsuit.........................	40,000	..
Interest paid on late income tax instalments...................................	2,800	..

Additional information:

2. Ms. A has correctly calculated capital cost allowance (CCA) for the year in the amount of $63,000...

3. The company spent $16,000 on new Landscaping Costs during the year. In accordance with GAAP, these costs were capitalized and amortized in the accounting records. .....

4. The company paid $1,500 to GBC Insurance for the presidents term life insurance policy as it was required by the bank as collateral for $200,000 loan. ABC Co. plans to pay off this loan in next 2 years.....