The controller of Cinesphere Inc.,a Canadian public corporation,has prepared the accounting income statement for the year ended March 31, 2019:

Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................................... .$995000

Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . $523,000

Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185,000 (708,000)

Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $287,000

Other income and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,000

$342,000

Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (102,000)

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $240,000

Other Information

(1) Included in the calculation of Administrative expenses:

(a) Interest on late income tax payments . . . . . . . . . . . . . . . . . . . . . . . . . $ 435

(b) Amortization (maximum capital cost allowance of $149,500(1)) .................. 104,900

(c) Club dues for the local Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . 1,750

(d) Federal political contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500

(e) Donations toregistered charities.................................................................... 22,500

(f) Property tax with respect to vacant land not being used in the course of the business . . . . . . . . . . . . . . . . . . . . . . . ..3,000

(g) Life insurance premium with respect to the president (the company is the beneficiary; not required for financing) .$1,950

(2) Included in the calculation of Other income and expenses:

(a) Landscaping of ground around new premise . . . . . . . . . . . . . . . . . . . . 4,800

(b) Fees paid with respect to the investigation of a suitable site for the companys manufacturing plant . . . . . . . . . . . ..$ 5,500

(c) DividendsreceivedfromtaxableCanadiancorporation................................... 42,800

(d) Gain from the sale of another piece of land, used in the business, sold for $200,000 in March (purchased for $73,800)

..$ 126,200

(e) Loss on sale of investments held as capital property purchased for $85,000 and soldfor $75,000 ....................... 10,000

(3) Loss carryforwards from 2018 are:

(a) Non-capital losses........................................................................................... 73,800

(b) Net capital losses(realized in 2013)................................................................ 60,000

(1) Maximum CCA has been correctly calculated to include the accelerated incentive investment introduced in the March 2019 budget

. Required:

You have been asked to prepare a schedule reconciling the accounting net income to income for tax purposes and taxable income, . Indicate the appropriate statutory reference for each inclusions or exclusions (i.e. Automobile mileage rates are covered under 18(1)(r) in the Income Tax Act).