Mercado Adventure Sports has prepared the following Income Statement in accordance with generally accepted accounting principles. Mercado Adventure Sports Income Statement January 1, 2017 to December 31, 2017 Sales Less: Cost of Goods Sold Gross Profit Less: Advertising Expense Club Dues Expense Convention Expenses Depreciation Expense Entertainment of Clients Interest Expense Miscellaneous Expenses Rent Expense (Building) Salaries Expense Utilities Expense Net Income before Extra Ordinary Items Gain (Loss) on Disposal of Building Net Income Before Taxes Less: Provision for Income Taxes Net Income for Accounting Purposes $933,181 292,860 $640,321 $18,522 2,200 2,583 20,000 9,573 3,900 2,782 47,000 201,709 8,192 $316,461 $323,860 51,362 $375,222 64,772 $310,450 Additional information: The Club Dues relate to annual membership fees at Divot Golf and Country Club. Mercado Adventure Sports on a regular and continuous basis uses this facility to maintain relationships with existing clients as well as meet new customers. Advertising Expense includes $5,000 paid to a US Broadcaster to entice customers to purchase our products and services: The target of the advertising is the: Foreign_Market Interest Expense related to a line of credit used for business activities. Included in the Miscellaneous Expenses was a speeding ticket incurred while delivering goods to a client. $22 Convention Expenses related to the companies owner attending a four day sales convention in Charlottetown, PEI, related to our products and services. The convention expense didn't break out an amount for meals and the entire invoice was recorded as "Convention Expenses" in the accounting records. Salaries expense includes $ 10,000 in bonuses declared on December 31, 2017 that were paid on: December 9, 2018 Assume Mercado Adventure Sports wants to claim the maximum CCA Deduction they are entitled to and have done so in all prior years as well. CEC - Balance on December 31, 2016: In 2017 Mercado Adventure Sports purchased a Client List for: UCC Balances for January 1, 2017 are as follows: 13,393 $21,626 Class 1 (4%) Class 8 (20%) $142,592 (Consisting of One Building Only) 142,574 There was only one depreciable asset disposed of during the year (Building). The accounting journal entry was as follows (Class 1): Cash 208,213 (Net Proceeds on Sale) Loss on Disposal of Building Accumulated Dep'n - Building Building Gain on Disposal of Building 0 21,389 178,240 (Cost of Building) 51,362 During the year, the company acquired the following capital assets: Class 8 (20%) Class 10 (30%) $19,978 $27,964 Mercado Adventure Sports signed a lease for a building on January 1, 2017. Since the original layout didn't work for our operations, we incurred expenses to remodel the building. The lease details are as follows: Cost of Renovations: $76,992 Lease Term - Yrs: 23 First Renewal Option - Yrs: Second Renewal Option - Yrs: 2 2 Required: Using the information below, determine the Net Income for Tax Purposes for Mercado Adventure Sports. Show all calculations and prepare a complete CCA schedule for each class