Please provide detail explanation.

Marigold Services has provided the following information for use in determining its income tax obligations related to the year ended December 31, 2017 Marigold Services Income Statement For the Year Ended December 31, 2017 Revenue Service Revenue Dividend Revenue Received Life Insurance Proceeds Received $854,000 44,000 96,000 Total Revenue $994,000 Operating Expenses Office Expenses Depreciation Expense Advertising Expense Meals and Entertainment Expense Rent Expense Litigation Expense Life Insurance Premiums Paid Salaries and Wages Expense Warranty Expense 22,000 91,000 22,000 17,000 39,000 24,000 7,800 344,000 51,000 617,800 $376,200 Total Operating Expense Incoem From Operations Additional Information 1, 2. 3. Marigold is publicly owned, and uses IFRS. It has an income tax rate of 25%. During the year warranty expense of $51,000 was accrued. 10,200 of this amount was paid in cash during 2017. This is the first year Marigold offers warranties on services rendered. Property, plant, and equipment was purchased for $546,000 on January 1, 2016. These assets are being depreciated on a straight line basis over six years with no residual value. For tax purposes the assets are classified as Class 8, 2090, [The half-year rule was used for 2016 .] 4. Marigold pays for life insurance policies for its top executives. During 2017, one of the executives died, and the company received a payment of $96,000 from the life insurance company. 5. On July 1, Marigold was sued by a competitor. Although the lawsuit has not been finalized, management believes that it is probable that a settlement will eventually be reached for $24,000. 6. On November 15, $31,000 was received from a customer for three months of service, beginning on November 15. One half of this amount was included in revenue for 2017 Marigold Services has provided the following information for use in determining its income tax obligations related to the year ended December 31, 2017 Marigold Services Income Statement For the Year Ended December 31, 2017 Revenue Service Revenue Dividend Revenue Received Life Insurance Proceeds Received $854,000 44,000 96,000 Total Revenue $994,000 Operating Expenses Office Expenses Depreciation Expense Advertising Expense Meals and Entertainment Expense Rent Expense Litigation Expense Life Insurance Premiums Paid Salaries and Wages Expense Warranty Expense 22,000 91,000 22,000 17,000 39,000 24,000 7,800 344,000 51,000 617,800 $376,200 Total Operating Expense Incoem From Operations Additional Information 1, 2. 3. Marigold is publicly owned, and uses IFRS. It has an income tax rate of 25%. During the year warranty expense of $51,000 was accrued. 10,200 of this amount was paid in cash during 2017. This is the first year Marigold offers warranties on services rendered. Property, plant, and equipment was purchased for $546,000 on January 1, 2016. These assets are being depreciated on a straight line basis over six years with no residual value. For tax purposes the assets are classified as Class 8, 2090, [The half-year rule was used for 2016 .] 4. Marigold pays for life insurance policies for its top executives. During 2017, one of the executives died, and the company received a payment of $96,000 from the life insurance company. 5. On July 1, Marigold was sued by a competitor. Although the lawsuit has not been finalized, management believes that it is probable that a settlement will eventually be reached for $24,000. 6. On November 15, $31,000 was received from a customer for three months of service, beginning on November 15. One half of this amount was included in revenue for 2017