please find ITA reference and explain why

Calculation of Net Income for Tax Purposes - Corporate Example Makolm's Most Excellent Hot Bengal Chutney, Limited INCOME STATEMENT For the Year Ended December 31, 2022 Sales Cost of Sales (nore ?) Gross Profit General and administrative expensesinores 2-7) Selling expenses (note 8) Income from operations Other Income (notes 9+10) Net Income before income taxes Income Taxes Net Income int 3000 $147,840 119,859 $27,981 -12,374 -9311 $6,296 16 $6312 2.528 $3,784 Notes in Ino San 5. A review of the other expense accounts included in general and administrative indicated: Amortization Interest on late payment of minicipal taxes Severance payments to four managers Loss from theft bypccounting clerk Donations to varleds registered charities $4,560,000 900 245,000 4,500 57.000 6. In early November 20xx, M's announced an early retirement package that was made available to employees over the age of 60. In order to provide employees with the time required to assess the offer the deadline for accepting the package has been set at February 15, 20x1. While no formal replies were received as of December 31, 20xx, the personnel manager anticipates a high acceptance rate. She expects that the costs associated with the packages will be 5672,000. This cost has been accrued in the 20xx financial statements. 7. The following information was taken from the various selling expense secounts: Cost of sponsoring presentations at a local theatre company Advertising in a U.S. magazine that is not distributed in Canada Advertising in a Canadian edition of a U.S. magazine Advertising in the European edition of a Canadian magazine Hockey game tickets given to customers Meals and entertainment costs of salespeople Stall Cluistmas party and summer barbecue Cost of sponsoring local little league teams Memberships for salespeople at local golf courses $15,000 4.600 5,300 6,000 8,000 109,500 43.800 5,000 12,700 8. The other income includes a loss on the sale of various fixed assets of $35.900 Calculation of Net Income for Tax Purposes - Corporate Example Makolm's Most Excellent Hot Bengal Chutney, Limited INCOME STATEMENT For the Year Ended December 31, 2022 Sales Cost of Sales (nore ?) Gross Profit General and administrative expensesinores 2-7) Selling expenses (note 8) Income from operations Other Income (notes 9+10) Net Income before income taxes Income Taxes Net Income int 3000 $147,840 119,859 $27,981 -12,374 -9311 $6,296 16 $6312 2.528 $3,784 Notes in Ino San 5. A review of the other expense accounts included in general and administrative indicated: Amortization Interest on late payment of minicipal taxes Severance payments to four managers Loss from theft bypccounting clerk Donations to varleds registered charities $4,560,000 900 245,000 4,500 57.000 6. In early November 20xx, M's announced an early retirement package that was made available to employees over the age of 60. In order to provide employees with the time required to assess the offer the deadline for accepting the package has been set at February 15, 20x1. While no formal replies were received as of December 31, 20xx, the personnel manager anticipates a high acceptance rate. She expects that the costs associated with the packages will be 5672,000. This cost has been accrued in the 20xx financial statements. 7. The following information was taken from the various selling expense secounts: Cost of sponsoring presentations at a local theatre company Advertising in a U.S. magazine that is not distributed in Canada Advertising in a Canadian edition of a U.S. magazine Advertising in the European edition of a Canadian magazine Hockey game tickets given to customers Meals and entertainment costs of salespeople Stall Cluistmas party and summer barbecue Cost of sponsoring local little league teams Memberships for salespeople at local golf courses $15,000 4.600 5,300 6,000 8,000 109,500 43.800 5,000 12,700 8. The other income includes a loss on the sale of various fixed assets of $35.900