For each "question", provide the effect on the reconciliation of Net Loss for Accounting Purposes to minimum Net Business Income/Loss for Tax Purposes.

• Additions to Net Loss for Accounting Purposes should be entered in the box as a positive number.
• Deductions from Net Loss for Accounting Purposes should be entered in the box as a negative number.
• If the item would have no effect on the reconciliation, enter the number 0 in the box.

Important:

• Round all answers to the nearest dollar where applicable.
• Be sure about the sign of your answer. Items will be marked as incorrect if they have the wrong sign.

1) At the end of 2020, the Company had a separate Class 1 UCC balance of $2,936,000 for a factory that they own. This building is eligible for the enhanced Class 1 rate of 10% for Manufacturing and Processing Buildings. The original capital cost of the building was $4,874,000. There are no substantial changes to the factory building during 2021.

2) The Company has a Class 10.1 UCC balance of $14,700 at the beginning of the year. This balance relates to a passenger vehicle that was purchased for an executive several years ago at a price of $39,000. The vehicle was sold during the year for $8,700. Ignore any accounting loss that would result from this transaction.

3) As the Company changed property and casualty insurers during the year, all of its assets had to be appraised. The cost of this appraisal was $3,640, with the entire amount being expensed in the year.

4) The Company expensed $127,700 in Depreciation and Amortization during the year.

5) The company deducted Bad Debt Expense in the amount of $6,600 on their Income Statement. This amount was the total of actual bad debt write-offs for the year. They did not set up an Allowance for Doubtful Accounts for accounting purposes. For tax purposes, the Company deducted a reserve of $4,000 for the taxation year ending December 31, 2020. A reasonable estimate of doubtful debts for the year ending December 31, 2021, is $7,200.

6) The company spent $9,600 on advertising in a foreign magazine. The ads were targeting Canadian customers in an ethnic neighborhood where the foreign magazine is very popular.

7) The Company has a separate Class 1 balance of $1,667,000 at the end of 2020. This balance relates to a single office building that was purchased in a prior year for $3,023,000. During the year, the company renovated the building at a cost of $120,000. This building is eligible for the enhanced Class 1 rate of 6%.

8) The company spent $5,000 on advertising on a US TV station. The ad was meant to attract American customers to use ABC's online offerings.

9) The Company was forced to pay damages in the amount of $8,100 for failure to perform a service contract. The amount was paid when the client threatened to bring action for breach of contract. The $8,100 was expensed in the current year.

10) The Company's expenses include donations to registered charities of $3,200.

11) The Company's expenses include costs of new landscaping at their administration building in the amount of $5,300 all of which was paid in the year. For accounting purposes, this was treated as an asset and was amortized accordingly.

12) The Company's expenses included a total amount of $11,400 for business meals and entertainment.

13) During 2021, the Company acquired a competing business at a price that included goodwill of $45,100. For accounting purposes, there has been no impairment or write-down of the goodwill since its purchase. The Company does not own any other intangible property.

8) The Company has a balance in Class 13 that relates to a single lease that commenced on January 1, 2020. The lease term is 3 years (s) with no renewal options specified. Expenditures on this leasehold were $10,300 in 2020. There have not been any further expenditures. The write-off of these expenditures for accounting purposes is included in the Amortization Expense.