WM Inc., a Canadian-controlled private corporation, was incorporated in 2018 and selected a December 31 taxation year-end. The company is primarily involved in the manufacturing of wooden pallets. You have been asked to prepare the corporate tax returns for 2022. The following information is provided to you:

Question 1 (25 Marks): WM Inc., a Canadian-controlled private corporation, was incorporated in 2018 and selected a December 31 taxation year-end. The company is primarily involved in the manufacturing of wooden pallets. You have been asked to prepare the corporate tax returns for 2022 . The following information is provided to you: A. Net income for accounting purposes is $2,400,000 after deducting $325,000 of current income tax expenses and $75,000 for future income tax expenses. B. Other amounts either deducted or added in the determination of net income for accounting purposes are as follows: 1. Bond premium amortization 2. Amortization expenses 3. Deducted Loss from employee theft $8,800 ( 60% of this amount was recovered through insurance later on) 4. Deducted 10% of landscaping cost (total cost was $58,000 ) 615,000 4,750 5. Deducted pre-paid advertising for 24 months (covers May 1 , 2022, to April 30, 3034) 6. Donation to registered charities 7. Business meals and entertainment 8. Life insurance premium on the life of the president for the year 5,800 (this policy was offered as collateral to the bank for 6 months) 9. Added capital dividend received from an associated company 10. Added eligible dividend received from a public company 11. Added profit on the sale of capital property 12. Deducted all of the construction cost of adding two new offices 13. Penalties on late income tax instalments 14. Interest paid on late municipal tax payment 37,200 17,400 62,500 22,000 15. Received from a supplier a court-ordered damage award for breach of contract. 16. Deducted legal expenses incurred related to the above transaction 40,000 10,000 30,000 112,000 2,900 1,835 17. Golf club membership fee paid for the president to entertain the clients 33,500 21,000 18. Reserve for estimated warranty expenses 19,300 19. Reserve for bad debts 16,275 12,000 20. Deducted all of the operating costs for an automobile for the president who uses it 60% of the time for the company business 11,700 C. Company also provided you with the following information: - In late 2018, WM Inc. acquired a 25\% shareholding of Jan Ltd., an arm's length "small business corporation," for $125,000. WM had plans to acquire a controlling interest and combine the two companies eventually. Due to market conditions, the Jan market value started declining, and WM managed to sell the shares to an arm's length investor for $10,000 on July 2022 , three months before the company declared bankruptcy. Selling costs were $1,600. WM has not recorded this loss yet. - WM had non-capital losses of $55,000 in 2020 and experienced a net capital loss of $25,000 in 2019 on the sale of some capital assets. - Company calculated a Capital Cost Allowance of $500,000 for 2022. Required: Calculate the minimum Net Income for Tax Purposes and Taxable Income for WM Inc for 2022