$**$Kindly solve this question and fill the solution and workings in Excel sheet as marked in red. Thanks$**$

Income Statement Overview

Net Sales and Cost of Goods Sold $($COGS$)$

Net Sales: $$7,864,238$

Cost of Goods Sold: $$6,451,133$

Gross Profit: $$1,413,105$

Selling and Administration Expenses

Selling Expenses: $$382,000$

Wages and Salaries: $$308,000$

Rent and Office Expenses: $$276,000$

Amortization Expense: $$50,000$

Other Expenses: $$169,660$

Total Expenses $($Excluding Income Taxes$)$: $$1,185,660$

Other Income

Other Income: $$167,044$

Income Before Taxes

Income Before Taxes: $$394,490$

Balance Sheet Information $($Incomplete$)$

Retained Earnings: $$426,000$

Equipment $($Net of UCC$)$: $$840,000$

Original Cost of Equipment: $$1,153,000$

Class $8$ CCA Rate: $20\%$

Future Income Tax Liability: $$250,003$

Investment in Devon Corp.:

Market Value of Devon Voting Shares: $$2,000,000$

Leduc$$s Ownership $(2\%$ of Market Value$)$: $$40,000$

Other Relevant Information

Taxable Capital Invested in Canada: $$5,000,000$

Business Activity: Importing consumer goods from South Africa and distributing them to retailers in Canada.

You are working with ABCD tax consultant group, new client; Leduc Corporation asks you to help them to identify there tax payables, and they provide you with the following information.

Leduc co$.$ is a Canadian Controlled Private Corporation and the Taxable Capital Invested in Canada $$5,000,000.$ Its business activity importing consumer goods from South Africa, and distribute to different retailers in Canada.

They provide you with there Income statement before taxes for the year ending Dec $31,2023.$ Required:

For Leduc co$,$ taxation year ended Dec $31,2023,$ calculate the following items using Excel worksheets:

Minimum Net Income for Tax Purposes if any

Taxable Income for the Year, if any

Part I federal Tax Payable $($including ART$)$

Part IV Federal Tax Payable

Refundable Dividend Tax On Hand account balance at Dec $31,2023$

The Dividend refund if any

Total $($minimum$)$ Federal Tax Payable

Write a memo $($one to maximum $2$ pages$)$ to Leduc co$.$ The owner explains your work. The memo should include why some amount of income was replaced, some expenses removed

Also, Leduc owners think they should not pay any taxes this year based on losses from prior years.

Maybe after you complete the return you notice they should pay tax, then explain why. In general, explain what you did and justify your numbers.Calculate federal tax abatement $-$ Taxable income earned in Canada $x10\%.$ deduct

Calculate small business deduction $($SBD$)$ for CCPCs $-$ least of the following $19\%.$ deduct

a$.$ Active business income ABI

b$.$ Taxable income

c$.$ Annual business limit $($ $$500,000$ unless associated with corporations$).$

Calculate M&P deductions: $13\%$ of the lesser of: deduct

a$.$ M&P profit reduced by SBD amount.

b$.$ Taxable income reduced by the amount eligible for SBD

Calculate ART $\frac{102}{3}$ of the lessor of $($AII or Taxable Income in excess of amount eligible for

SBD$)$ ADD

Calculate general rate reduction $13\%$ on $($the excess of TI over SBD & M & P & AII$)$ deduct

$=$ Part I tax payable $$$$

Calculate Part IV tax payable $(\frac{381}{3}\%)($With limitations$)$

Calculate dividend refund $(\frac{381}{3}\%)($With limitations$)$

Total Tax Payable $($Part I$+$ Part IV $-$ Dividend Refund$)$