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The Income Statement that has been prepared by Margo Ltd's accountant for the year ending December 31, 2020, is as follows: $925.000 1717,000) $200,000 Sales

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The Income Statement that has been prepared by Margo Ltd's accountant for the year ending December 31, 2020, is as follows: $925.000 1717,000) $200,000 Sales Revenue Cost Of Goods Sold (Note 1) Gross Profit Operating Expenses: Salaries And Wages Rents Property Taxes (Note 2) Amortization Expense Write Down Of Goodwill (Note 3) Charitable Donations Legal Fees (Note 4) Bad Debt Expense (Note 5) Warranty Provision Note 6) Social Club Membership Fees Other Operating Expenses Operating Income Other Revenues (Expenses): Gain On Sale Of Investments (Note 77 Interest Revenue Interest On Late Income Tax Instalments Investment Counsellor Fees Foreign Interest Income Note 8) Dividends From Taxable Canadian Corporations Income Before Taxes {$40,2001 (22.200) (8,8001 (35,600) (1,7001 (19.800) (2,2201 (7.1001 5,500) 72103 ( 39,870) (190,200) $ 12800 $ 9,500 2,110 1.0201 (500) 1.530 3.000 I 14,620 $ 32,420 Notes And Other Information: The calculation of Cost Of Goods Sold was based on an opening inventory of $225,000 and closing inventory of $199,600. In addition, the closing inventory was reduced by $15,000 for a reserve for future declines in value. This is the first year the company has used an inventory reserve 2. Property Taxes include $1,200 for tax paid on vacant land. The company has held this land for five years in anticipation of relocating its head office 3. As the result of a business combination on January 15, 2020, Margo Ltd recorded $34,000 in goodwill. As of December 31, 2020, this goodwill was found to be impaired and a good- will impairment loss of $1,700 was recorded. 4. The maximum CCA for the current year is $79,785. This includes the appropriate write-off of the goodwill described in Item 3 5. The legal fees are made up of $1,200 paid to appeal an income tax assessment and $1,020 paid for general corporate matters. 6. The company bases its accounting Bad Debt Expense on the values used for tax purposes. 7. This is the first year that the company has deducted a provision for estimated warranties. 8. The gain on the sale of investments involved marketable securities with a cost of $21,000. The securities were sold for $30,500. 9. The gross foreign interest income of $1,800 was received net of $270 in foreign tax I withholdings. Required: Determine the minimum Net Income For Tax Purposes and Taxable income of Margo Ltd., for the year ending December 31, 2020

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