For the year ending December 31, 2020, the Income Statement of Polytech Ltd., prepared in accordance with generally accepted accounting principles, is as follows:

Revenues $975,000

Other Income 50,000

Expenses:

Cost Of Goods Sold ($250,000)

Selling And Administrative Costs ( 130,000)

Amortization Expense ( 150,000)

Other Expenses ( 140,000) ( 670,000)

Income Before Tax Expense $355,000

Income Tax Expense: (61,000)

Net Income $294,000

Other Information:

1. Cost of Goods Sold includes:

$10,000 reserve for inventory declines

2. Selling and Administrative Costs includes:

$24,000 in business meals and entertainment

$500 in interest on late tax installments

3. Other Expenses includes:

$15,000 in golf club membership dues

$ 2,000 in contributions to registered charities.

$ 1,000 in bond amortization

4. The only assets owned by Polytech Ltd. is manufacturing equipment (class 8) with a total cost of $1,800,000 and a UCC on January 1^st, 2020, of $1,200,000. During 2021 the company sold equipment for $400,000 (original cost $350,000) and replaced it with equipment that cost $600,000.

Required:

Determine Polytech Ltd.s 2020 minimum Net Income For Tax Purposes (NIFTP) and any tax account balances. Explain your adjustments to Net Income.