M$\text{'}$s had a number of items of invent ory that did not sell well in the current year. ror accounting purposes, the accountant has recorded a reserve for inventory obsolescence. The reserve was calculated based on the carrying value of any inventory item that had not had a sale in the last $180$ days. The reserve at year$-$end was $$1,285,000.$

M$\text{'}$s had a $$3,500$ life insurance policy on the life of the president, the company was the beneficiary. There was no banking or other requirement for the insurance.

$\backslash$table$[[3.$ An analysis of the professional fees for $20$ revealed the following expenses:$],[$Legal and accounting fees related to the issuance of shares,$$29,300$