For the year ending December 31, 2017, the Income Statement of Markham Ltd., prepared in accordance with generally accepted accounting principles, is as follows:

Revenues$973,000

Expenses:

Cost Of Goods Sold($272,000)

Selling And Administrative Costs(132,000)

Amortization Expense(156,000)

Other Expenses(137,000)(697,000)

Income Before Tax Expense$276,000

Income Tax Expense:

Current($ 97,000)

Future(32,000)(129,000)

Net Income$147,000

Other Information:

1.The Company spent $6,000 during the year on landscaping for its new building.For accounting purposes this was treated as an asset.The Company will not amortize this balance as it believes the work has an unlimited life.

2.Selling And Administrative Costs include $15,000 in business meals and entertainment.

3.Other Expenses include contributions to registered charities of $3,700.

4.As the Company expects to issue more shares during 2018, it made a number of amendments to its articles of incorporation in 2017 and included the legal costs in Other Expenses.These costs totalled $6,000.

5.During 2016, Markham Ltd. acquired a competing business at a price that included goodwill of $70,000.For accounting purposes, there is no impairment or write-down of the goodwill purchased in either year.

6.Other Expenses includes bond discount amortization of $2,500.

7.Selling And Administrative Costs include membership fees for several employees in a local golf and country club.These fees total $3,400.

Required:

Based on the foregoing information, Compute the net incomefor tax purposes for MarkhamLtd.'sfor its 2017 fiscal year.

NoteYour answer should incude the following.

1. The reason for any items omitted from the calculation.

2.Income Tax Act(ITA)section, subsection and paragraph (where applicable) references in order to support your answer to question.

3. Follow the sequence of information given above 1 to 8

4. State your assumptions if any

5.Show all calculations whether or not they seem relevant to the final answer.