Calculate income tax and other applicable items given the following information: (note, the company uses IFRS. Show all supporting calculations)

1) The companys tax rate is 30%. The income statement tax expense is calculated with the taxes payable method. 2) The office and general expense account contains $85,000 in meals and entertainment. 3) There are $175,000 in nondeductible expenses included in the accounting and consulting fees line item on the income statement.

4) There were no capital asset additions or dispositions during the year.

5) The net book value (NBV) and undepreciated capital cost (UCC) for the capital assets are as follows

NBV UCC 2020 2019 2020 2019 Land $ 1,250,000 $ 1,250,000 n/a n/a Buildings 4,500,750 4,650,775 $ 2,767,211 $ 3,255,543 Furniture and fixtures 650,000 693,333 412,533 485,333 Machinery and equipment 12,567,000 13,404,800 7,975,856 9,383,360 Leasehold improvements 2,456,000 2,701,600 1,607,452 1,891,120 $21,423,750 $22,700,508 $12,763,052 $15,015,356 Car Toons Audio Inc. As at December 31, 2020 REVENUE $44,500,740 Cost of goods sold 23,540,891 Gross margin 20,959,849 EXPENSES Accounting and consulting fees $ 175,000 Advertising and promotion 1,575,000 Amortization 1,276,758 Bad debt 87,500 Insurance 85,000 Interest on convertible bonds 80,000 Legal fees 225,500 Office and general expenses 750,850 Rent 325,000 Repairs and maintenance 450,755 Research and development 11,345,000 Travel 133,750 Utilities 333,565 Wages and benefits -325,000 $17,168,678 Earnings for the year before income taxes $ 3,791,170 Income tax expense 1,137,351 Earnings for the year $ 2,653,819 Earnings per share-basic $ 0.13 Earnings per share-diluted $ 0.11 Weighted average shares outstanding-basic 20,550,750* Weighted average shares outstanding-diluted 25,880,750* NBV UCC 2020 2019 2020 2019 Land $ 1,250,000 $ 1,250,000 n/a n/a Buildings 4,500,750 4,650,775 $ 2,767,211 $ 3,255,543 Furniture and fixtures 650,000 693,333 412,533 485,333 Machinery and equipment 12,567,000 13,404,800 7,975,856 9,383,360 Leasehold improvements 2,456,000 2,701,600 1,607,452 1,891,120 $21,423,750 $22,700,508 $12,763,052 $15,015,356 Car Toons Audio Inc. As at December 31, 2020 REVENUE $44,500,740 Cost of goods sold 23,540,891 Gross margin 20,959,849 EXPENSES Accounting and consulting fees $ 175,000 Advertising and promotion 1,575,000 Amortization 1,276,758 Bad debt 87,500 Insurance 85,000 Interest on convertible bonds 80,000 Legal fees 225,500 Office and general expenses 750,850 Rent 325,000 Repairs and maintenance 450,755 Research and development 11,345,000 Travel 133,750 Utilities 333,565 Wages and benefits -325,000 $17,168,678 Earnings for the year before income taxes $ 3,791,170 Income tax expense 1,137,351 Earnings for the year $ 2,653,819 Earnings per share-basic $ 0.13 Earnings per share-diluted $ 0.11 Weighted average shares outstanding-basic 20,550,750* Weighted average shares outstanding-diluted 25,880,750*