Review 1. Polytech Inc. calculated its Net Income for its Dec. Slst, 2019, year-end as follows: Revenues $1,000,000 Other income 100,000 A Expenses: Cost Of Goods Sold ($300,000) B Selling And Administrative Costs ( 150,000) C Amortization Expense ( 175,000) D Other Expenses ( 125,000) {750,000} E Income Before Tax Expense $350,000 Income Tax Expense: (75,000) Net Income $275,000 Other Information: A. Other income consists of a capital gain. B. Cost of Goods Sold includes: $ 15,000 in lower of cost or market adjustment C. Selling and Administrative Costs includes: 35 30,000 in club memberships for senior management $ 1,000 in interest on late tax installments D. Polytech Inc. amortizes the following assets: 0 Building, 95% manufacturing use, 5% office use, with an ACB of $1.5 million and a UCC of $1.2 million on Jan. 1, 2019. 0 Warehouse leased in 2014 for a 10-year term with an option for two 5-year renewals. Leaseholds improvements were made in 2014 for $100,000 and 2016 for $40,000. 0 Manufacturing equipment (class 8) with a cost of $200,000 and a UCC on Jan. 15', 2019, of $140,000. In December the company sold equipment for $500,000 which was originally purchased for $400,000. Replacement equipment was also purchased in December for $650,000. E. Other Expenses include: $ 4,000 in 2019 year-end bonuses, paid on July 15', 2020 $ 2,000 in bond amortization $ 4,000 in incorporation costs A. Calculate minimum Net Income For Tax Purposes for the year ended Dec. 31, 2019; B. End of year tax account balances; and, C. Explain adjustments to GAAP income and any amounts that are unadjusted. 2020 Marc Kampschuur Page 1 of 4