The income statement has been prepared by Daisy Ltd's accountant for the current year ending December 31, 2022 is as follow: Notes: 1. 2. 3. 4. Sales Cost of goods sold Gross Profit Operating Expenses Operating Income Other Income and expense: Interest Income Loss on disposal of limited life licence Income before income tax expense Income tax expense Net Income General and administrative expense (Note 1) Meal and Entertainment(Note 2) Interest expense (Note 3) Repairs and Maintenance Amortization expense (Note 4) Meals and entertainment expenses: a. Interest expese paid to CRA due to late payment of tax owing Interest expense paid to Enmax due to late payment of January's bill b. General and administrative expense include: Donations to registered charities Accrued bonues (Accrued June 1, 2022, paid January 16, 2023) Tax filing services for 2021, paid in March 15, 2022 Payroll Expenses New software purchases on October 1, 2022 ($13,000 for application software and $25,000 for systems software) Accounting and legal fees for amendments to articles of incorporation C. d. Premium membership at golf club for Daisy Memberships at golf club for salespeople Meals while enteretaining clients Annual summer BBQ for all staff (211,000) (31,000) (1,650) (62,000) (150,000) Class 8 Class 14 Class 14.1 Class 10.1 8,000,000 5,400,000 2,600,000 95,000 68,000 (455,650) 2,144,350 Maximum CCA has always been taken on all depreciable property. The UCC balances at January 1, 2022 are as follows: 13,090 110,532 (17,000) 2,237,882 (170,000) 2,067,882 27,000 78,000 2,000 60,000 38,000 6,000 6,000 2,000 17,000 6,000 1,500 150 Requirement: PARTI: (24 points) Using an Excel workbook to prepare the Capital Cost Allowance (CCA) schedule and the UCC (Undepreciated Capital Cost) balance for Daisy Ltd,. In 2022, a limited life licence to produce costumes based on a popular theme park was sold for $63,000. The original cost of this licence was $95,000 and its carrying value at the time of sale was $80,000. The licence was the only property in class 14 Daisy Ltd purchases land and constructed a new building on it during the year. The building will be used 95% for manufacuring and processing. An election was made to include the building in a separate class 1. The cost of the land was $350,000, and the building cost $475,000 to construct. New furnitures for the receiption area were purchased for $1,200, and some outdated desks used by the finance department with a cost of $5,000 were sold for $3,500 Daisy purchased a fuel car worth $50,000 for one of the salespersons to use for employment purposes. PART II: (14 points) Using an Excel workbook preapre a reconciliation schedule for Daisy Ltd. Calculate the minimum net income for the 2022 taxation year for Daisy Ltd,. Provide a brief description of the items that are not included in your calculation.

The income statement has been prepared by Daisy Lids actountart tor the current year ending December 31 , 2022 is as follow: Ne 2. Meals and entertainment expenses: Premium membernhp at golf club for Dasy Uemberships at goif cub for salespeopie Meals while entereasining clients 6.000 Annual summer 830 for al staf? 2000 17.000 6.000 3. Interest expese paid to CRA due to late payment of tar poing 1,500 150 4. Masmum CCA has always been taken on all depeciatie propery. The UCC baiances at January 1. 2622 are as folows In 20e2. a timhed ite licence to pioduce costumes bases on a popular theme park was soid tor a. $63.000 The original cost of this licence was $55,060 and its carrying value at the time of sale was 580,000 . The licence was the only pracerty in class 14 Doisy Lte purthases ind and consiructes a new bulding on 4 during the yoar. The bulding will b. be used 95% for renufbcuring and protessing. An election was made to include the buicing in a separate class 1. The cost of the land was 5350.000 , and the bulding cost 5475.000 to construct c. New Numtures for the reseiplien ares were purchased for 51.250 . and some cutcaled desks used by the finance depanmert wh a cost of 55.000 were sold for $3.500 d. Dasy purchased a fuel car worth $50,000 tor one of the saseapersons to use for employment purposes. Requirement: PART I : (24 polnts ) Using an Excel workbosk to prepste the Captai Cont Alowanct (CCA) schecule and the UCC (Undepreciated Captal Cost) bolance for Daisy Lu. PART I: (14 points) Using an Excel workbogk preape a recencillatige achedule for Daisy LAd. Calculate the minimum net income for the 2022 taration year for Dalsy Lid, Provide b brte' oescription of the tems Fot are not included in your caiculation