Ava Miller has just completed the second year of operating her veterinary clinic. You have been retained by Ava for tax assistance and advice. At a recent meeting you gathered Information on her practice, which is presented below. For the year ended December 31, 2020, the clinic showed a profit of $149700, as follows: Professional service Gross profit from surgical Instrument sales Administration and other expenses $399,400 33.900 $422,300 276 200) 146.100 3.800 $149.700 Interest Income Net Income Included in the above is depreciation amortization expense of $27.800 on fixed assets and amortization of development costs of $5.300. Additional Information for 2020 Is Outllned below. 1 On February 28. Ava purchased a competitor's business and merged it with her own. The following assets were acquired: Truck Equipment $21.900 60.500 During the year. Ava designed and patented a new surgical Instrument. On July 1, a legal fee of $4,800 was paid for the patent life of 20 years) registration, this amount is included in administration expenses. In October, $19,400 was spent on consultants to research metal alloys, and this cost is being amortized as development costs in the financial statement 3. Professional services revenue Includes the value of unbilled services complled from a work-in-progress ille. At December 31, unbilled services amounted to $19,400. compared with $2,500 at the same time last year. In 2019. Ava had made an election under section 34 of the Income Tax Act to exclude work in progress from Income Some of the items included under administrative and other expenses are as follows: Group life insurance for office staff Christmas gifts to staff (under $200 each) Dues to golf club (for employee Meals and drinks for Cilents Books (15.volume set on veterinary medicine) Interest on car loan (six months) Finder's fee for a loan to finance equipment $1,300 1.700 1.400 400 3.600 2.500 1200 5. The Income statement Includes a cost of $3.900 for attending three conventions during the year. Convention 1 ($900) was in July. Conventions #2 ($1,700) and 3 ($1.300) were both in December. Each convention includes a cost of ($140) for meals. For each of the December conventions, the airfare of ($290) was included in accounts payable at the end of the year. 6. Vehicle costs Include operating costs of $2,900 for the automobile (Including $400 for car parking). The automobile was driven 24.000 km. Of this. 12,000 km was for customer travel, 2000 km was for travel between her home and the clinic, and 10,000 km was for personal travel 7. Ava expects that a number of the new manufactured surgical Instruments will be returned for modification, which she will do at no extra cost to the customer. The Income statement includes a $2,400 deduction based on her estimate of the returns. As of December 31, $1.000 of costs were incurred for returned Items. 8. Ava moved from rented premises to new rented premises on February 28, with 20 months remaining on the old lease. The landlord accepted a payment of $9,700 in exchange for cancelling the lease. The accounting records have amortized this cost over the remainder of the lease term and accordingly have deducted $4.850 as rent expense. Capital cost allowance (CCA) for tax purposes has been correctly calculated as $18,200. Required: Amortization of development costs Books (15-volume set on veterinary Medicine) Capital Cost Allowance Car loan interest expense Car operating expense Christmas gifts to staff (under $200 each) Convention #1 Convention 2 Convention =3 Convention Airfare Convention Meals Depreciation of Fixed Assets Dues to golf club Finders fee for a loan to finance equipment Group life insurance for office staff Interest Income Legal fees for Patent registration Meals and drinks for clients Net Income per financial statements Rent Expense Research and development - actual Retur sales - Actual Reserve for Return Sales Ava Miller has just completed the second year of operating her veterinary clinic. You have been retained by Ava for tax assistance and advice. At a recent meeting you gathered Information on her practice, which is presented below. For the year ended December 31, 2020, the clinic showed a profit of $149700, as follows: Professional service Gross profit from surgical Instrument sales Administration and other expenses $399,400 33.900 $422,300 276 200) 146.100 3.800 $149.700 Interest Income Net Income Included in the above is depreciation amortization expense of $27.800 on fixed assets and amortization of development costs of $5.300. Additional Information for 2020 Is Outllned below. 1 On February 28. Ava purchased a competitor's business and merged it with her own. The following assets were acquired: Truck Equipment $21.900 60.500 During the year. Ava designed and patented a new surgical Instrument. On July 1, a legal fee of $4,800 was paid for the patent life of 20 years) registration, this amount is included in administration expenses. In October, $19,400 was spent on consultants to research metal alloys, and this cost is being amortized as development costs in the financial statement 3. Professional services revenue Includes the value of unbilled services complled from a work-in-progress ille. At December 31, unbilled services amounted to $19,400. compared with $2,500 at the same time last year. In 2019. Ava had made an election under section 34 of the Income Tax Act to exclude work in progress from Income Some of the items included under administrative and other expenses are as follows: Group life insurance for office staff Christmas gifts to staff (under $200 each) Dues to golf club (for employee Meals and drinks for Cilents Books (15.volume set on veterinary medicine) Interest on car loan (six months) Finder's fee for a loan to finance equipment $1,300 1.700 1.400 400 3.600 2.500 1200 5. The Income statement Includes a cost of $3.900 for attending three conventions during the year. Convention 1 ($900) was in July. Conventions #2 ($1,700) and 3 ($1.300) were both in December. Each convention includes a cost of ($140) for meals. For each of the December conventions, the airfare of ($290) was included in accounts payable at the end of the year. 6. Vehicle costs Include operating costs of $2,900 for the automobile (Including $400 for car parking). The automobile was driven 24.000 km. Of this. 12,000 km was for customer travel, 2000 km was for travel between her home and the clinic, and 10,000 km was for personal travel 7. Ava expects that a number of the new manufactured surgical Instruments will be returned for modification, which she will do at no extra cost to the customer. The Income statement includes a $2,400 deduction based on her estimate of the returns. As of December 31, $1.000 of costs were incurred for returned Items. 8. Ava moved from rented premises to new rented premises on February 28, with 20 months remaining on the old lease. The landlord accepted a payment of $9,700 in exchange for cancelling the lease. The accounting records have amortized this cost over the remainder of the lease term and accordingly have deducted $4.850 as rent expense. Capital cost allowance (CCA) for tax purposes has been correctly calculated as $18,200. Required: Amortization of development costs Books (15-volume set on veterinary Medicine) Capital Cost Allowance Car loan interest expense Car operating expense Christmas gifts to staff (under $200 each) Convention #1 Convention 2 Convention =3 Convention Airfare Convention Meals Depreciation of Fixed Assets Dues to golf club Finders fee for a loan to finance equipment Group life insurance for office staff Interest Income Legal fees for Patent registration Meals and drinks for clients Net Income per financial statements Rent Expense Research and development - actual Retur sales - Actual Reserve for Return Sales