Lia Wright is the sole shareholder of Newgardens Ltd. (NGL), a Canadian-controlled private corporation. The corporation holds investments in shares, bonds, and real estate. You have been retained to complete NGL's tax return for the year ended December 31, 2022, and to provide certain other tax advice. It is now February 15, 2023, and you have gathered the information outlined below. 1. The draft income statement for the year ended December 31, 2022, is as follows: Income Interest on bonds and certificates Dividend income $103,800 44,000 Net loss from real estate rentals (19,000) Gain on sale of land (Stoney Lake) 226,300 Share of profits of Rare Products Ltd. 159,700 Less Expenses Legal fees for general corporate affairs Director's fees (1,300) (27,900) Donations-charitable (10,700) Income before income tax $474,900 2. NGL owns a 40% interest in Sharlet (a partnership), which has a June 30, 2022, year end. The partnership's profit for the year was $200,000, which consisted of dividends from taxable Canadian corporations of $106,500 and royalties from mineral rights of $159,700. On December 31, 2022, NGL received $100,000 as its share of a partnership cash distribution. The partnership's results are not reflected in the above income statement. 3. On September 30, 2022, NGL purchased a $100,000 guaranteed investment certificate bearing 6% interest. The company intends to record the interest of $6,000 on September 30, 2023, its one-year anniversary date. 4. The dividend income of $44,000 consists of the following: Canadian Public corporations Turner Inc.-an American corporation-net of a 10% U.S. withholding tax $24,200 19,800 Not included in the above is a dividend received from Rare Products Ltd. of $40,000. NGL owns 50% of its voting shares and records the investment using the equity method of accounting. Rare earned business income of $240,000 in the current year. 5. During the year, NGL received 100 shares of Herford Ltd. (a public corporation) as a stock dividend. Herford increased its paid-up capital by $45 for each stock dividend share issued. NGL did not record the receipt of the stock dividend. 6. In January 2022, NGL purchased three hectares of land on Stoney Lake for $173,000. The land was then rezoned and subdivided into six building lots. The entire subdivision was immediately sold to a building contractor for $399,300. The payment terms called for no cash down, but payments of $66,550 are required as the contractor completes construction on each lot. By December 31, 2022, one payment of $66,550 had been received. 7. In 2021, NGL had purchased two rental properties as follows: