NET BUSINESS INCOME Morgon Inc. is a proprietorship owned by Helen Morgon. Its taxation year ends on December 31. For the current taxation year, Ms. Morgon's daughter, Summer, who keeps the books for the business, has calculated a Net Income for Morgon Inc. of $193,200. In calculating this figure, Summer used generally accepted accounting principles, Other Information: 1. During the year, Morgon Inc. spent $12,700 for landscaping the grounds around its office. In accordance with generally accepted accounting principles, this amount was treated as a capital expenditure. As the work was done late in the year no amortization was deducted for the current year 2. The following items were included in the accounting expenses Amortization expense 569,300 Golf club membership fees for Helen and Summer 15,000 Cost of sponsoring local soccer teams 7,200 Advertising on a foreign television station Directed at Canadian market 9.600 Business meals and entertainment 22,000 Charitable donations 31,900 Loss from theft 16 200 interest paid on building mortgage 24,200 Interest paid on late income tax instalments 1,400 Appraisal costs on land to be sold 1.200 Damages resulting from breach of contract 3.800 3. Included in the accounting expensentere 14.000 in fees paid to Summers 16 year old son for creating and maintaining the website of Norgon Inc in preing that work. Helen found that it would cost at least 25.000 to obtain the equivalent services from an outside consultant NET BUSINESS INCOME Morgon Inc. is a proprietorship owned by Helen Morgon. Its taxation year ends on December 31. For the current taxation year, Ms. Morgon's daughter, Summer, who keeps the books for the business, has calculated a Net Income for Morgon Inc. of $193,200. In calculating this figure, Summer used generally accepted accounting principles, Other Information: 1. During the year, Morgon Inc. spent $12,700 for landscaping the grounds around its office. In accordance with generally accepted accounting principles, this amount was treated as a capital expenditure. As the work was done late in the year no amortization was deducted for the current year 2. The following items were included in the accounting expenses Amortization expense 569,300 Golf club membership fees for Helen and Summer 15,000 Cost of sponsoring local soccer teams 7,200 Advertising on a foreign television station Directed at Canadian market 9.600 Business meals and entertainment 22,000 Charitable donations 31,900 Loss from theft 16 200 interest paid on building mortgage 24,200 Interest paid on late income tax instalments 1,400 Appraisal costs on land to be sold 1.200 Damages resulting from breach of contract 3.800 3. Included in the accounting expensentere 14.000 in fees paid to Summers 16 year old son for creating and maintaining the website of Norgon Inc in preing that work. Helen found that it would cost at least 25.000 to obtain the equivalent services from an outside consultant