Question $2$ Morgon Inc, carries on a business and uses a taxation year ending December $31.$ The sole shareholder of the Company is Helen Morgon. For the current taxation year, Ms$.$ Morgon's daughter, Summer, who maintains the books and records of the Company, has calculated $2022$ net income of $$193,200.$ In determining net income Summer begins with accounting income applying ASPE. Other Information: $1.$ During the year, Morgon Inc. spent $$12,700$for landscaping the grounds around its office. In accordance with ASPE, this amount was treated as a capital expenditure. As the work was done late in the year, no amortization was claimed for the current year. $2.$ The following items were included in the expenses claimed for accounting purposes: $2.$ The following items were included in the expenses claimed for accounting purposes:

Amortization expense $$69,300$

Golf club membership fees for Helen and Summer $15,000$

Cost of sponsoring local soccer teams $7,200$

Advertising on a foreign television station

$($Directed at Canadian market$)9,600$

Advertising circulars $($Only one$-$quarter distributed$)12,400$

Business meals and entertainment $22,000$

Charitable donations $31,900$

Loss from theft $16,200$

Interest paid on building mortgage $24,200$

Interest paid on late income tax instalments $1,400$

Appraisal costs on land to be sold $4,200$

Damages received resulting from breach of contract$3,8003.$Included in the accounting expenses were $$14,000$in fees paid to Summer's $16$ year old son for creating and maintaining the web site of Morgon Inc. In determining the fee, Helen found that it would cost at least $$25,000$to obtain the equivalent services from an outside consultant. $4.$ Maximum CCA has been determined to be $$94,200$for the current taxation year. $5.$ Had the contract in which damages were paid been completed, it would have increased business income, Required: Calculate Morgan Inc.s$\text{'}2022$ business income for tax purposes. Explain the reason for excluding any of the amounts.