Frst Gear Inc. is a corporation located in Saint John, New Brunswick that distributes automotive in the Maritime Provinces. It is owned by John Robinson who lives in Saint John. For the year l September 30, 2018, its accounting income statement is as follows ats i $1,225,000 Sales Cost of sales and other expenses including CCA Operating profit Other net income... Net income before taxes . Provision for taxes. Net income after tax . . . .. (725,000) 500,000 208,500 708,500 (200,725) $ 507,775 11ome Introduction to Federal 392 Selected Additional Information (1) Other income includes: $ 85,000 123,500 $208,500 Portfolio dividends from Canadian public corporation Canadian interest income on long-term bonds.. John is confused about how income in his corporation is taxed. He wants to understand it so he can ifferent types of income earned by First make better decisions. He has asked you to explain how the d Gear are taxed. Then he wants you to calculate the corporate tax liability and provide any advice you is appropriate related to the refundable tax. Personally, he is in the top tax bracket. Assume the is 4% on income eligible for the small business deduction and 12% on other provincial corporate tax rate income. You agree that you will: (A) Assess the situation. (B) Identify the issues. (C) Analyze the issues. (D) Advise/recommend