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Determine Ava's business income for tax purposes for 2022. Identify any other sources or Required: income that are taxable in the year. PROBLEM EIGHT Greyon

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Determine Ava's business income for tax purposes for 2022. Identify any other sources or Required: income that are taxable in the year. PROBLEM EIGHT Greyon Inc. operates an active business. Financial statements for the year ended Decem. ber 31,2022 , report a net income before taxes of $300,000. The following additional information is provided for 2022. 1. 2. During the year, Greyon completed construction of a new warehouse bullding and ite rost of $600.000 was added to the balance sheet. The cost consists of the fc 3. Greyon's balance sheet includes an amount for goodwill acquired from a previous business acquisition. During the year, a goodwill impairment loss of $30,000 was deducted from the income from business operations. 4. Legal expenses, deducted in arriving at income from business operations, include $2,000 for drafting the mortgage document for the new warehouse, $1,000 to investigate a zoning limitation on the new warehouse site, and $5,000 for the audit fee. 5. A management bonus of $60,000 was announced and accrued in September. The bonus was paid in two equal instalments on January 31 and April 30 of the following year, 2023. 6. Advertising and promotion, deducted in computing income from business operations, includes $20,000 for airing a TV commercial, $30,000 for production of the TV commercial, $5,000 for club memberships in a sports-related facility to enhance business contacts, and $12,000 for acquiring a permanent mailing list for seeking new customers. 7. The income statement includes the following additional expenses: Amortization \begin{tabular}{lr} Architect's fee for desiscounts on purchases & \\ \hline & $41,000 \\ \hline & 6,000 \\ & 13.000 \\ & 25.000 \\ \hline \end{tabular} 8. Capita Required: (b) Determine Greyon's business income for tax purposes for 2022. formula. PROBLEM NINE

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