AP $12-3($Corporate Net Income and Taxable Income$)$

Vertin Ltd$.$ is a Canadian public company that has always used a calendar$-$based taxation year

$($January $1$ to December $31).$ However, as December is a very busy time for their business, it has

requested a change in their taxation year end to July $31$ as required by ITA $249\mathrm{.}1(7),$ a date at

which their business activity is at the lowest point in the year. The CRA has approved the request.

The change will be implemented beginning with the $2023$ taxation year, resulting in a short taxation

year of January $1$ to July $31,2023.$ The company$$s income statement, prepared in accordance with