Hi there. I was hoping that somebody could help me with this problem about Morton Forms. Included with the problem is the CCA calculation table, I need help with this as well. Thank you.

\fMonon Forms Morton Forms is a Canadian controlled private corporation speclallzjng in designing and printing custom business forms It is owned by viola Moncn For the taxation year ended December 31, 2017, Ms Morton's daughter, Linda, who works in the business, has calculated a Net Income for Morton Forms ol $576,183 ln calculating this gure, Linda used generally accepted acoounting principles Linda has produced the followlng Income Statement for the year ended December 31, 2017 Morton runns lnc. income statement treat ending necember 3 1, 1017 Sales $ 7.573303 cost or Goods Sold 5,453,752 Gross prorit 2,110,151 Expe rises General and Admin 5 352,000 Amom 13(an Expense 550,000 interest 3,500 1,410,500 0perating income 595,551 0ther Income: loss on Dlsposzl of intangible Assets (17,000) Interest Income 110,532 income belore income taxes 793,133 income Taxes Current 102,000 ruture 3 5,000 217,000 Net lnmme S 576,183 During your review or Linda's work and last years tax return lor the corporation, you have made the lollowrng notes 1 In ttre accounting records, the Allowance tor Doubtrul Accounts was $25,000 at December 31, 2017, and $20,000 at December 31, 2106, During 2017, the company had actual wnteotls or 311,750 As a result, the accounting Bad Debt Expense was $16,750 This amount is included in General and Admin expenses on the lncorne statement A review of the listing o1 receivables (tor tax purposes), indicates that the actual items that may be uncollectible total $15,000 at December 31, 2107 In 2016, the Dompany deducted a reserve lor bad debts o1313,000 tor tax purposes General and Admin Expenses include a) Donations to registered marities 27,000 b) Accrued Bonuses e Accrued Sept 1, 2017 Paid June 15, 2010 70,000 Meals and entertainment costs c) $1,000 per month Ior premium membership at golf club Ior Vlola 12,000 d) $200 per month lor membership at golf club tor salespeople 2,400 6) Meals while entertaining clients 32,000 I) Eood costs foerola's personal chel tor her meals at home 5,000 g) Annual summer BEG ror all sla 6,000 h) Sponsorship or local baseball team where company name is 15,000 prominently displayed on lront ol iersey i) Advertising in a us tmde magazme directed at us clients 100,000 i) New sortmre purchased October 1, 2017 ($13,000 ror applications 30,000 and $25,000 for systems) k) Accounting and legal lees lor amended to the artides or 6,000 incorporation I) Costs to attend annual oonventlon o1 hnger knnters in Thailand 17,000 Whlle at the wnvemlon, Vlola was sure to hand out buslness Cards and talk ICI Dmer aende aboul her buslness wllh the lntenllun OI claiming the convention as a business apense Interest atpense consists ol the lollowmg a) Interest expense , operations 5,000 b) Penalty and lnterej1 for late and insulhcient instalment payments 2,000 c) Interest on late payment o1 municipal property taxes 1 ,500 Travel costs (included in general and admin expenses) include both air travel and travel reimbursement to employees tor business travel, The company policy is to reimburse employees $0 50 per kilometer lor the business use cl their automobiles During the year, seven employees each drove 4,000 on employment related activities and one employee drove 7,500 kilometers None or the kilometer based allowances are required I0 be included in the income ot the employees Maximum CCA has always been taken on all assets The undepleclaled Capllal cost balances at January 1, 2017 were as tollows Class 1 4% $650 000 Class 8 95 000 Class 1 0 1 17 850 Class 14 SE 000 Class 14 1 1a 090 Class 53 135 000 Class 44 65,000 7 There was a loss on disposal at a limited life license to produce copyrighted materials for a maior distributor This license originally cost the company $95,000, and it was sold for $03,000 in 2017 The book value ol the license at the time o1 sale was $30,000 When the license was sold, it was the only asset in 115 CCA class The loss was claimed as a loss 0n disposal ol intangible assets on the Income Statement Purchases and sales or equipment and other capital assets made during 2017 were as lollows (Mole any items discussed in other sections are included in this list as well) a The company purchased land and constructed a new building on ll during the year The building was used 95% for manulactunng and processing The cost ol the land ms $350,000, and the building cost $475,000 to construct b The company purchased a new set or lurntture for the reception area tor $1,200 c Some outdated desks used by the nance department wtth a cost o1 $5,000 were sold tor pmceeds o1 $3,500 d Landscaping or grounds around the new building cost $35,000 This amount was capitalized for accounting purposes e A company car lor use by the president of the company was purchased tor $90,000 This car replaced the only other existing company car, which vas purchased in 2013 tor $95,000 The old car was sold tor $60,000 1 A lence around the new building cost 552,000 g New sotiware was purchased $13,000 tor Applications and $25,0001cr Systems The company sold some shares that had been purchased several years ago The capital gain on these shares was $152,700 Linda didn't know how to account tor the, so she credtted the entire amount to retained earnings Rguired Determine Monon Farnls' minimum Net Income Ior Tax Purposes lor the year ending December 31, 2107 lgnore GST/HSTIPST implications Using the supplied tonnatted Excel spreadsheet, indicate your rationale for the treatment 0f all inlormation given