Solutions Ltd. completed its fiscal year end December 31, 2018 and incurred a $140,000 Net Loss Before Taxes and Amortization Expense. Solutions Ltd. provided the following information that was used in the computation of the 2018 net loss for accounting purposes:

1. Solutions Ltd. had to pay damages of $11,000 for failure to perform a service contract; Solutions Ltd. paid the amount when the client threatened to sue re breach of contract. Solutions Ltd. expensed the $11,000 amount in 2018 and charged that amount to Rent Expense.

2. Solutions Ltd.s Property Tax Expense included an amount of $2,000 that was paid to a municipality in which Solutions Ltd. maintains a fishing lodge for its employees.

3. Solutions Ltd.s General Expense included $15,000 contributions to registered charities, and $9,000 in sponsoring a local high schools football team.

4. Solutions Ltd.s Office Expense included $10,000 costs re landscaping for its administration building.

5. Solutions Ltd.s Employee Benefits Expense included a $14,000 loss resulting from a theft by one of its clerical employees.

6. Effective December 31, 2017, resulting from a change in its distribution system, Solutions Ltd. had to cancel a tenants lease that would have been in force until December 31, 2027. During the 2018 taxation year, Solutions Ltd. agreed to pay, and expensed, $20,000 damages. It was charged to Miscellaneous Expense. On December 31, 2018, $ 7,000 of this amount had not been paid.

7. Salaries Expense included a $25,000 bonus payable to Solutions Ltd.s president. The bonus will be paid on February 01, 2019.

8. Insurance Expense included a $12,000 premium on a whole life policy on the life of the presidents wife. This was not a group life policy and the proceeds were payable to Solutions Ltd.

9. All of Solutions Ltd.s assets had to be appraised, because Solutions Ltd. changed its insurers during 2018. The cost of the appraisal was $6,500 and Solutions Ltd. charged that amount to Appraisal Expense.

10. Solutions Ltd.s Management Expense included $65,000 in management bonuses that will not be paid until April 30, 2019. Also, $40,000 in bonuses, which were deducted for both tax and accounting purposes in 2017, were paid in March, 2018.

11. Bad Debt Expense amounted to $18,000.

12. Solutions Ltd. purchased shares in 2015 for a cost of $155,000; in 2018, Solutions Ltd. sold those shares for $375,000. The capital gain on these shares was $220,000 and Solutions Ltd. credited the capital gain to retained earnings.

13. The president and his wife attended a conference, which cost $9,000. Solutions Ltd. charged that amount to Travel Expense. $4,000 of that amount was incurred by the presidents wife, who chose to accompany him on this trip.

14. Solutions Ltd.s Interest Expense included $1,100 bond discount amortization.

15. Solutions Ltd. incurred the following amounts, which were charged to Legal Expense:

    • Cost of amending the companys articles of incorporation	$ 4,000
      Legal fees related to income tax reassessment	5,000
      Legal fees re breach of contract (see item 1)	3,000

16. Solutions Ltd. expensed $18,000 re business meals and entertainment.

Required

Calculate Solutions Ltd.s Net Income For Tax Purposes Before CCA, for the year ending December 31, 2018. Explain why you have not included any of the preceding items in your calculations.