head office in London, Ontario, The company is a manufacturer of high end custom costumes Angie's Amazing Getups Incorporated is a Canadian controlled private corporation with a The company started in business in 2016 when the sole shareholder, Angela Q Snodgrass, was and makeup used in movie and theatre productions with sales in Canada and the U.S. nd makeup used in movie and theatre productions with sales in Canada and tbst photographed oy the paparazzi after a particularly enthusiastic night of partying W Angela saw herself on the front page of every tablold newspaper the next day, she knew thy fame was not for her. Since Angela was a highly trained clothing designer and makeup antis the felt she would be able to use those skills to start her own business and keep out of the limelight. During your review of Angela's work and last year's tax return for the corporation, you have General And Administrative Expenses (5852,000 November, 2019, fter discovering that her bookkesper, Ponzi Madott had been hauding her, Angela fired him and took over the bookheeping sponsibilities hensell, pte having a limited knowledge of accounting She han produced the following Income Seement and miscellaneous financial information for the year ended December 31, 2019 Assignment Patlems needs your help. Angie's Amaring Getups Incerporated Income Statement Year Ending December 31, 2019 Sales Cost Of Goods Sold Gross profit Expenses: $7.578903 5,468,752 $2.110,151 Amortization Expense Interest (550,000 8,500 Operating Income Other Income: Loss On Disposal Of Limited Life Licence (1,410,s00 $699651 Interest Income Income Before Income Taxes 17,000) 110,532 Income Taxes Current $ 793,183 (5182,000) ( 35,000) Future Net Income 217,000) 5 576.183 made the following notes. da the accounting records, the Allowance For Doubtful Accounts was $25,000 at necember 31, 2019, and $20,000 at December 31, 2018. During 2019, the company Detual write-offs of $11,750. As a result, the accounting Bad Debt Expense was 16 750, This amount is included in General and Administrative Expenses on the Income Statement. A review of the listing of receivables (for tax purposes), indicates that the actual items that may be uncollectible total $15,000 at December 31, 2019. In 2018, the company deducted a reserve for bad debts of $13,000 for tax purposes. 2 General And Administrative Expenses include: Donations To Registered Charities Accrued Bonuses - Accrued September 1, 2019, Paid June 15, 2020 $ 27,000 78,000 Meals And Entertainment Costs: $1,000 Per Month For Premium Membership At Golf Club For Angie $200 Per Month For Memberships At Golf Club For Salespeople $32,000 For Meals While Entertaining Clients $5,000 In Food Costs For Angie's Personal Chef For Her Meals At Home $6,000 For Annual Summer BBQ For All Staff 12,000 2,400 32,000 5,000 6,000 100,000 15,000 Sponsorship Of Various Theatre Productions That Use Angie's Costumes Advertising In A U.S. Theatre Magazine Directed At U.S. Clients New Software Purchased October 1, 2019 ($13,000 For Applications And $25,000 For Systems) Accounting And Legal Fees For Amended Articles Of Incorporation Costs To Attend Annual Convention Of Costume Designers Held In Thailand 17,000 38,000 6,000 mel eimburment to employees for business travel. The company policy s to re at the time of sale was $80,000. The licence was the only asset in Class 14. ad one employne drove 7,500 kilometers. None of the kilometer based allowances the year even employees each drove 4,000 kilometers on employment related activit was sold for S63,000. The original cost of this licence was $95,000 and its net book value 7 Purchases and sales of equipment and other capital assets made during 2019 were as The undepreciated capial bue employees S0.62 per kilometer for the business use of their automobiles. Duie 4Thvel cty ncloded in Ceneral and Administrative costs) include both wie trve n The building will be used 95% for manufacturing and processing. The cost of the land follows inote: some items are discussed in other sections of this problem). All amounts 2 The company purchased land and constructed a new building on it during the year. 6 During 2019, a limited life licence to produce costumes based on a popular theme park b. The company purchased a new set of furniture for the reception area for $1,200, C Some outdated desks used by the finance department with a cost of $5,000 were sold d. Landscaping of the grounds around the new building cost $35,000. This amount was e A company car for use by the president of the company was purchased for $90,000. AND Chapter AsgmPo t Epese Operats alances at January 1, 2019 were as follows Clas1 (4 Class8 Class 10.1 Class 14 Class 14.1 Class 44 Class 53 $650,000 95,000 17,850 68,000 Nil 65,000 135,000 were capitalized for accounting purposes: was $350,000, and the building cost $475,000 to construct. for proceeds of $3,500. capitalized for accounting purposes. This car replaced the only other existing company car, which was purchased in 2017 for $95,000. The old car was sold for $60,000. L A fence around the new building, high enough to prevent the paparazzi from taking pictures of Angela while she was at the office cost $52,000. 8. The company sold some shares that had been purchased several years ago. The capital gain on these shares was $152,708. Angela didn't know how to account for this, so she credited the entire amount to retained earnings. Required: Determine Angie's Amazing Getups Incorporated's minimum Net Income For Tax Purposes for the year ending December 31, 2019. Ignore GST/HST/PST implications.