Comprehensive Business Income (Sections 4.1 and 4.2) Barnes Industries Ltd. Is a Canadian private company located in Nova Scotia. Mike Barnes, the majority shareholder of the Company, devotes all of his time to managing the operations of this enterprise. Over the years, the business has consistently shown a profit and for the taxation year ending DECEMBER 31, 2020, Mike has determined that the Company's Net Income after Income Taxes is $340,000. In determining this income figure, Mike has used generally accepted accounting principles. Other information with respect to the determination of accounting income before taxes for 2020 is as follows: 1. The Income Tax Expense deducted by Barnes industries Ltd. For the year is $86,000. 2. During the year, the company has deducted donations to various registered charities in the amount of $3,500 3. The company recorded amortization expense for the year of $241,000. 4. The maximum CCA for the year has been correctly determined to be $389,000. 5. After attending a seminar on the tax advantages of income splitting among family members, Mike hires his unemployed cousin to do the filing in the office. She proves to be totally incapable of doing the job and is asked to leave after only one day. In the interests of family harmony, he pays her $10,000, which is deducted in the accounting records of the Company 6. The Company has deducted $23,000 for advertising in newspapers in the New England states. The advertising is directed towards selling the Company's products in that region. 7. In January, 2020, the Company paid landscaping costs of $11,000 that were expected to have a useful life of 10 years. These costs were capitalized for accounting purposes and are being amortized on a straight line basis over a period of ten years. (This amortization is included in the amortization expense of $241,000 listed in 3 above.) 8. As a result of Mike's business travel, the Company incurred costs for meals and entertainment in the amount of $13,500. All of these costs were deducted in the determination of accounting income. 9. On January 1, 2020, the Company leases a Mercedes for five years for Mike to use in his business travels. The total 2020 lease payments amounted to $1,100 per month. Required: For Barnes Industries Ltd.'s 2020 taxation year, determine Net Income for Tax Purposes. Indicate why you have not included any of the preceding items in your calculations. Comprehensive Business Income (Sections 4.1 and 4.2) Barnes Industries Ltd. Is a Canadian private company located in Nova Scotia. Mike Barnes, the majority shareholder of the Company, devotes all of his time to managing the operations of this enterprise. Over the years, the business has consistently shown a profit and for the taxation year ending DECEMBER 31, 2020, Mike has determined that the Company's Net Income after Income Taxes is $340,000. In determining this income figure, Mike has used generally accepted accounting principles. Other information with respect to the determination of accounting income before taxes for 2020 is as follows: 1. The Income Tax Expense deducted by Barnes industries Ltd. For the year is $86,000. 2. During the year, the company has deducted donations to various registered charities in the amount of $3,500 3. The company recorded amortization expense for the year of $241,000. 4. The maximum CCA for the year has been correctly determined to be $389,000. 5. After attending a seminar on the tax advantages of income splitting among family members, Mike hires his unemployed cousin to do the filing in the office. She proves to be totally incapable of doing the job and is asked to leave after only one day. In the interests of family harmony, he pays her $10,000, which is deducted in the accounting records of the Company 6. The Company has deducted $23,000 for advertising in newspapers in the New England states. The advertising is directed towards selling the Company's products in that region. 7. In January, 2020, the Company paid landscaping costs of $11,000 that were expected to have a useful life of 10 years. These costs were capitalized for accounting purposes and are being amortized on a straight line basis over a period of ten years. (This amortization is included in the amortization expense of $241,000 listed in 3 above.) 8. As a result of Mike's business travel, the Company incurred costs for meals and entertainment in the amount of $13,500. All of these costs were deducted in the determination of accounting income. 9. On January 1, 2020, the Company leases a Mercedes for five years for Mike to use in his business travels. The total 2020 lease payments amounted to $1,100 per month. Required: For Barnes Industries Ltd.'s 2020 taxation year, determine Net Income for Tax Purposes. Indicate why you have not included any of the preceding items in your calculations