Problem 1 - 2? Points available The controller of Martinez Power Tool Corporation Ltd. has reached out to us, requesting that we calculate the minimum income from business or property of the company for the year ended December 31, 2020 under the provisions of the Income Tax Act. She would like us to indicate, briey, the reasons for making any necessary adjustments to financial accounting profits (provide an ITA reference). She would, also, like us to indicate reasons for not considering an item in our computation, so that all items are accounted for in our work. The corporation has carried on business in Canada since its incorporation under the Canada Business Corporations Act in 1924. Its net income for the year ended December 31, 2020, as determined under generally accepted accounting principles, is as follows: Martinez Power Tool Corporation Limited INCOME STATEI'IvaN'I' For the Year ended December 31, 2020 Sales ............................................................................... $8,500,000 Cost of goods sold: Inventory, January 1, 2020 ................... . $ 800,000 Purchases ............................................... . m $2,800,000 Inventory, December 31, 2020 ................. . 511114111111 Cost of goods sold ........................................................ LEW Gross prot... .$1, 300, 000 Selling expenses ...................................... --$ 500, 000\" General and administrative expenses ........ . 100,000 $011,991]; $ 200,000 Other income . . . 511,111,111 33 760,000 Provision for income taxes ............................................. .m Net income .................................................................... . 5350,0011 Included in this summary of the financial results of Martinez Power Tool Corporation Ltd. are the following details: (1} Closing inventory was written down, for a possible future in1pairment of fair market value below cost, by $40,000 in 2020 and $25,000 in 2019. (2} Selling expenses include