Q3. BUSINESS INCOME (Net Income for Tax Purposes)

Brisbane Publishing Company had accounting net income of $565,000 for the December 31, 2020 year-end. The following information pertains to the company for 2020:

1. The owners spouse was paid $100,000 to act as a receptionist to the owner/president of the company but did not do anything. Wages expense also includes wages paid to two other receptionist who earned $42,500 each during 2020.
2. Meals and entertainment for the year amounted to $6,800. Included in this amount was $1,000 paid for the company Christmas party.
3. Amortization expense for the year was $17,600.
4. CCA was correctly calculated as $22,000 for 2020.
5. The owner paid $8,000 to take some clients to Fort Lauderdale at a golf club for a week. This amount was deducted as an advertising and promotional expense in 2020.
6. The company sold a piece of land next to the company building for $50,000. The cost of the land was $40,000 and the accounting gain was added to the net income for accounting purposes.
7. Included in the calculation of accounting net income was a deduction for three conventions at a cost of $1,500 each.
8. The company paid $22,000 in landscaping fees during 2020 and the full amount was deducted when coming up with accounting net income.
9. Brisbane Publishing supports the local college writing competition with an annual sponsorship of $1,500 every year. This amount was deducted when coming up with the net income above.
10. The company also donated $5,000 to a local charity and deducted it in the accounting net income.

Required: For Brisbane Publishing Companys 2020 taxation year, determine net income for tax purposes. If any of the above items do not affect the calculation of net income for tax purposes, please enter a description of the item and enter a 0.

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