pls explain why and ITA references

i just need tax ITA references for each income statement note

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, 20xx Sales Cost of Sales (note 1) Gross Profit General and administrative expenses notes 2-7) Selling expenses(note 8) Income from operations Other Income (notes 9+10) Net Income before income taxes Income Taxes Net Income in 8000's $147,840 -1 19.859 $27,981 -12,374 -9,311 S6,296 16 $6.312 -2,528 $3,784 Notes to Income Statement: 1. M's had a number of items of inventory that did not sell well in the current year. For accounting purposes, the accountant has recorded a reserve for inventory obsolescence. The reserve was calculated based on the carrying sale of any inventory tem that had not had a sale in the Est 180 days. The reserve at year-end was $1,285,000. 2. M's had a $3.500 life insurance policy on the life of the president, the company was the beneficiary. There was no banking or other requirement for the insurance. 3. An analysis of the professional fees for 20xx revealed the following expenses Legal and accounting fees related to the issuance of shares Legal fees related to amending the articles of corporation Costs incurred regarding the renegotiating of bank loans Costs incurred to defend the company against wrongful dismissal charge Costs related to the structuring of an agreement for the purchase of equipment from a foreign company Appraisal costs to determine value of equipment for bank loans $29,300 2.300 46.100 59,600 38,700 5,100 14. During the year, there were substantal repairs completed to the outside of the building Afer the repairs some on the landscaping had to be redone. The total costs were $139,000 onlus, $23.500 relates to the landscaping costs The S139.000 was included in general and administrative expenses