Business A has produced the following income statement and miscellaneousfinancial information for taxation year ending December $31,2023,$ and needs yourhelp

$1.$ In the accounting records, the allowance for doubtful accounts was $$25,000$ atDecember $31,2023,$ and $$20,000$ at December $31,2022.$ In $2023,$ the company hadwrite$-$offs of $$11,750.$ As a result, the accounting bad debt expense was $$16,750[$$$11,750$ bad debts $+$ the increase in the doubtful debts of $$5,000$ from $2022$ to $2023].$This amount is included in general and administrative expenses on the incomestatement.

A review of the listing of receivables $($for income tax purposes$)$ indicates that the actualitems that may be doubtful of collection total $$15,000$ at December $31,2023.$ In $2022,$the company deducted a reserve for doubtful debts of $$13,000$ for income taxpurposes$\mathrm{.}2.$ General and administrative expenses include: $$ Donations to registered charities $ $27,000$ Accrued bonuses$$Accrued September $1,2023,$ paid June $15,2024$ $ $78,000$ Costs to attend annual convention held in Toronto, Ontario.

No amounts for meals are included in the convention fees. $ $17,000$ Meals and entertainment expenses: $$ $$1,000$ per month for premium membership at golf club $ $12,000$ $$200$ per month for memberships at golf club for salespeople $ $2,400$ $$32,000$ for meals while entertaining clients $$32,000$ $$5,000$ in food costs for owner$$s personal chef for her meals at home $ $5,000$ $$6,000$ for annual summer BBQ for all employees $ $6,000$ Sponsorship of various local small businesses $ $100,000$ Advertising in a U$.$S$.$ magazine directed at U$.$S$.$ clients $ $15,000$ New software purchased October $1,2023($$$13,000$ for applications

software and $$25,000$ for systems software$)$ $ $38,000$ Accounting and legal fees for amendments to articles of incorporation $ $6,0003.$ Interest expense consists of the following: $$ Interest expense$$Operations $$5,000$ Penalty and interest for late and insufficient instalment payments $ $2,000$ Interest on late payment of municipal property tax $ $1,5004.$ Travel expenses $($included in general and administrative expenses$)$ include both air travel and travel reimbursement to employees for business travel. The company policy is to reimburse employees $$0\mathrm{.}69$ per kilometre for the business use of their

automobiles. During the year, seven employees each drove $4,000$ kilometres on

employment$-$related activities, and one employee drove $7,500$ kilometres.

None of the kilometre$-$based allowances are required to be included in the income of the employees.

$5.$ A colleague calculated CCA for the year to be $$265,393.$

$6.$ In $2023,$ the accounting loss on a depreciable asset totalled $$17,000.$

$7.$ Landscaping on the grounds around the building cost $$35,000$ and was paid in $2023.$ This amount was capitalized for accounting purposes.

$8.$ The company sold some investments purchased several years ago. The capital gain on these shares was $$152,708.$ Business A forgot to include this amount in the income statement.

Instructions:

$1.$ Determine Business A$$s $2023$ Business Income $($for tax purposes$)$