Cheese-Man Ltd. operates an active business. Financial statements for the year ended December 31, 2016 report a net income before taxes of $335,000. The following additional information is provided: 1. Cheese-Mans net income is summarized as follows:

Income from business operations $304,500

Gain on sale of capital assets 26,500

Interest on a bond investment 4,000

Total $335,000

2. The income statement for the year ended December 31, 2016 included the following items: Amortization $44,100

Charitable donations 6,300

Meals and entertainment costs 14,800

Architects fee for design of new storage facility 27,000

Audit Fee 5,500 3. A management bonus of $65,000 was announced and accrued in November 2016. The bonus was paid in two equal installments on January 31 and July 31, 2017. 4. During the year, Cheese-Man Ltd. completed construction of a new storage facility as a result of increased sales experienced in the last few years requiring expansion. Consequently, the following costs were added to the balance sheet in 2016:

Building construction (financed by bank loan) $525000

Heating and cooling systems (paid in cash) 84,000

Landscaping of grounds (paid in cash) 21,000

Total $630,000 5. The following expenses were additional costs were incurred relating to the construction of the new storage facility and were deducted in determining income from business operations: Legal expenses of $3,500 for drafting the mortgage document for the new storage facility, and $1,400 to investigate a zoning limitation on the storage facility site. 6. Advertising and promotion costs incurred during the year included $24,000 for TV and radio commercials, $5,300 for club memberships in a sports-related facility to enhance business contacts and $12,600 for advertising in a U.S. magazine with the ads targeted towards the companys Canadian clients. 7. Capital cost allowance has been correctly calculated as $62,000.

Required: Determine Cheese-Man Ltd.s net income from business for tax purposes for the 2016 taxation year. If an item requires no adjustment, provide an explanation as to why.