Photo Tonight, a film$-$developing and camera$-$repair franchise, began business on January $1,2023.$ In the process of beginning operations, it incurred the

following capital expenditures.

Developing equipment $ $95,000$

Furniture and fixtures $45,000$

Small tools $($under $$500)30,000$

Franchise $($expires in $20$ years$)88,000$

Incorporation costs $8,000$

Pickup truck $18,000$

Leasehold improvements $(10-$year lease$)36,000$

The business was immediately successful and generated substantial profits for the years ended December $31,2023$ and $2024.$

In $2024,$ the truck was traded in for a larger unit costing $ $20,300.$ A value of $ $7,000$ was assigned to the old truck when it was traded in$.$

In $2025,$ the owner was forced to leave the business due to illness. As a result, the assets were valued and sold on December $31,2025,$ for the following values.

Developing equipment $ $75,000$

Furniture and fixtures $15,000$

Small tools $16,000$

Franchise $90,000$

Incorporation costs $0$

Pickup truck $15,000$

Leasehold improvements $15,000$

Goodwill $20,000$

Required:

Complete the table below to calculate the effect of all these transactions on net income for tax purposes for the $2023,2024,$ and $2025$ taxation years. Assume

none of the assets are designated immediate expensing property. $($Use a minus sign $(-)$ when entering numbers that reduce UCC.$)$

Rate

$8$

Furniture

$10$

Truck

$12$

Small Tools

$14$

Franchise

$13$

Leasehold

Improvements

$53$

Manufacturing

Equipment

$14\mathrm{.}1$

Incorporation

costs

GoodWill

Increase

$($Decrease$)$ on

Net income

$2023$

Purchase

CCA

UCC

$2024$

Purchase

Disposal

CCA

UCC

$2025$

Disposal

Recapture $($Terminal Loss$)$

Ending UCC balance

Capital Gains

Taxable Capital gain