Paul Poti is the sole proprietor of Poti Enterprises, a small retail shop selling widgets located in Edmonton, AB. The shop has been in operation for several years. Paul provides you with the Statement of Income for the proprietorship for December 31 of the current year: Poti Enterprises Statement of Income for the Year Ended December 31, 2022 Notes to the above statement of income: 1. Poti Enterprises is a proprietorship operated by Paul Poti. 2. Accounting and legal include legal fees related to Paul's dispute with regards to a personal car accident, in the amount of $2,000. 3. Advertising and promotion include "Meals and Entertainment" costs in the amount of $4,250. 4. Information for capital cost allowance (CCA) purposes-the undepreciated capital cost (UCC) on December 31 of the prior year was as follows: a) The undepreciated capital cost balances on January 1, were Class 1: $200,000; Class 8: $60,000; Class 10: $80,000; Class 13: $37,500; Class 14.1: $0 b) Disposal of property of plant and equipment: sale of the corporation's only Class 1 asset (proceeds: $180,000; original cost in 1996: $300,000 ). The land on which the building was situated was sold for its fair market value, which was equal to its cost in 1996. c) During the year, the corporation made the following purchases: - A new office building was purchased in October for $700,000. In addition, the cost of the related land was $400,000. It costs $20,000 to pave part of the land for use as a parking lot. - New office furniture was purchased for $25,000. This purchase replaced office furniture which was sold for its $4,000 net book value (original cost: $10,000 ) - An unlimited life franchise was purchased for $100,000. - A 10-year patent, class 44 was purchased on July 1 for $20,000 - Improvements on its leased head office premises which were rented in 2020 for four years with two successive options to renew for five years and three years. Improvements had originally been made in 2020 in the amount of $45,000. Additional improvements were made in 2022 at a cost of $28,000. d) During the year, the corporation sold some small tools (each costing less than $500 ) for their net book value of $500. 5. The company has set up an allowance for doubtful accounts based on a review of the Accounts Receivable on December 31 of the current year. This is a procedure that the proprietorship follows every year. 6. Insurance includes life insurance premiums for Paul Poti in the amount of $3,000. This insurance is required as collateral for the business bank loan. 7. Office expenses include the purchase of a computer, on January 15 of the current year, for $1,500 and $300 for an upgrade of accounting software for payroll tax information. 8. Wages and benefits include the club dues/membership fees paid to the Royal Oak Club in the amount of $6,000. The club dues paid are for the five managers who take clients to the Royal Oak Club on a regular basis for business purposes. 9. The following information was taken from various expense accounts: a) Hockey game tickets given to customers, $8,000. b) $3,000 for auto allowance paid to the sole employee. This allowance was calculated as $1 per km for 3,000kms driven by the employee. c) Cost of sponsoring local little league teams, $5,000. d) $8,000 of financing fees incurred in connection with the bank loan. e) On December 1 of the current year, $10,000 was paid to one of the tents to cancel a rental lease agreement because the company required the space for its own business operations. The amount was deducted in the accounting statements. The lease of property had five years remaining at that time. Required: 1. Using the Excel template from D2L, prepare a Reconciliation Schedule to reconcile accounting net income to net business income for tax purposes. 2. Prepare a CCA schedule in good form