ABC MFG Kids Inc. is a manufacturer of ABC. The company's headquarters is in Toronto, Ontario. The year-end is December 31, and Mr. Tony ABC, a Canadian resident, wholly owns the company. The company's unaudited income statement is presented below, along with additional information.

ABC MFG Inc. Income Statement for the year ended December 21, 2020. (Unaudited) REVENUE Sales & Other Revenue (see $2,300,000 Note) Cost of goods sold Opening inventory $ 500,000 Purchases 650,000 Ending inventory (252,000) $ 898,000 Gross Margin $ 1,402,000 EXPENSES Rent $ 200,000 Salaries and benefits 500,000 Management salaries 80,000 Employee Benefits 95,000 Interest on late payment of 2,500 income taxes Loss on sale of computer 1,500 equipment (note 2) Business meals & 10,000 entertainment Professional fees 5,000 Repairs and maintenance 22,000 Dues and subscription (note 3) 25.000 Business Insurance 17,000 Office expenses 16,000 Qualified charitable donations 5,000 Marketing Expense 12,000 Depreciation expense (note 1) 25,000 $1,016,000 Net income before tax provision $386,000 Provision for income taxes $50,000 (Cdn and Foreign) Net income $336,000