Charlie's Dinner Inc., a pet store, was incorporated on January 1, 2021. The following information about Charlie's accounting and taxable income for the year ended December 31, 2021 follows:

Accounting income before taxes $250,000 Items included in accounting income before taxes: Dividends received from another Canadian company 50,000 Golf club membership dues 5,000 Meals and entertainment expenses 12,000 Depreciation expense 90,000 Warranty expense 25,000 Deductions available for taxes CCA 100,000 Warranty costs incurred 20,000

The company purchased $900,000 of depreciable assets at the beginning of 2021, and uses straight-line depreciation over 10 years useful life.

The company has a corporate tax rate of 18%.