Peterson Manufacturing has a December 31st year end. The income statement for the year just ended follows: Peterson Manufacturing Income Statement For the Year Ended December 31, 2020 Sales 7,400,000 Cost of goods sold 5,180,000 Gross margin 2,220,000 Operating expenses Advertising and promotion 215,000 Depreciation 682,000 General and admin 540,000 Other selling expenses 280,000 1,717,000 Operating income 503,000 Gain on sale of land 80,000 Net income 583,000 You have been provided with the following additional information: 1. Included in advertising and promotion is $12,000 for meals with customers and $3,000 for the staff Christmas party. 2. CCA has been correctly calculated to be $845,000. 3. During the year the company expensed $8,000 spent on ads in Manufacturers Digest, a monthly magazine published in the US. The ads target companies across Canada, trying to get them to purchase Peterson products. 4. Peterson provides a three year warranty for every product sold. The warranty liability in 2019 was $42,000 and was $39,000 in 2020. 5. The company sold some idle land during the year. The land was originally purchased for $350,000 five years ago and was sold for $430,000. 6. During the year, the company issued 5,000 common shares to the wife of the principal owner. The cost of issuing the shares was $10,000. The full $10,000 was expensed for accounting purposes. 7. The company has a life insurance policy on the life of the CEO. Total premiums expensed during the year were $1,800. The policy is required by the main creditor of the company. 8. Included in general and admin expenses are $1,500 in penalties for late payment of income taxes and $1,200 in interest on late payment of property taxes. Using the reconciliation method, calculate Peterson Manufacturings Net Income for Tax Purposes.