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Problem 5-8 Greyon Inc Greyon Inc operates an active business. Financial statements for the year ended December 31, 2020 report a net income before taxes

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Problem 5-8 Greyon Inc Greyon Inc operates an active business. Financial statements for the year ended December 31, 2020 report a net income before taxes of $300,000. The following additional Information is provided: 1 Greyon's net income is summarized as follows: Income from business operations $308,000 Gain on sale of capital assets 16,500 Interest on a bond Investment 5,500 Income from Financial Statements $330,000 2 During the year Greyon completed construction of a new warehouse building and its cost of $600,000 was added to the balance sheet. The cost consists of the following: Building construction $550,000 Heating and cooling systems 88,000 Landscaping of grounds 22.000 $660.000 3. Legal expenses include $2.200 for drafting the mortgage document for the new warehouse, $1100 to Investigate a zoning limitation on the new warehouse she, and $5,500 for the audit for 4. The balance sheet of Greyon includes an amount for goodwill acquired from a previous business acquisition. During the year, a goodwill impairment loss of $33,000 as deducted from the Income from business operations 5. A management bonus of $66,000 was announced and accrued in September. The bonus was paid in two equal installments on January 31 and April 30 of the following year , 2021 6. The Income statement for the year ended December 31, 2020 includes the following items: h Amortization $45,100 Charitable donations 6,600 Volume rebates and discounts on purchases 14,300 Architect's foe for design of new Warehouse building 27,500 7 Advertising and promotion includes $22.000 for airing a TV commercial. $33,000 for production of the TV commercial, $5,500 for club memberships in a sport-related facility to enhance business contacts and 513,200 for acquiring a permanent mailing list for cooking now 7. Advertising and promotion Includes $22,000 for alring a TV commercial, $33,000 for production of the TV commercial. $5,500 for club memberships in a sports-related facility to enhance business contacts and $13.200 for acquiring a permanent mailing list for seeking new customers 8. Capital cost allowance has been correctly calculated as $63,800 Required: 1. Determine Greyon's Net Income from Business for tax purposes for the 2020 taxation year 2. Determine Greyon's Net Income for Tax Purposes for the 2020 taxation year Net Income From Business $ Segment A Income Subtotal $ 0 Net Income for Tax purposes 5 0

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