X Inc. has just completed its 2020 taxation year ending December 31, 2020. Using ASPE, the accountant has determined that the Company has net accounting income in the amount of $185,000. In order to prepare the income tax return for the Company, the accountant has compiled the following information.

Instructions: For each "question", provide the effect on the reconciliation of Net Loss for Accounting Purposes to minimum Net Business Income/Loss for Tax Purposes.

Additions to Net Inocome for Accounting Purposes should be entered in the box as a positive number.

Deductions from Net Income for Accounting Purposes should be entered in the box as a negative number.

If the item would nave no effect on the reconciliation, enter the number 0 in the box.

Important:

Round all answers to the nearest dollar where applicable.

Be sure about the sign of your answer. Items will be marked as incorrect if they have the wrong sign.

QUESTION 1 The Company was forced to pay damages in the amount of $15,300 for failure to perform a service contract. The amount was paid when the client threatened to bring action for breach of contract. The $15,300 was expensed in the current year.

QUESTION 2 The Company's expenses included a total amount of $12,700 for business meals and entertainment.

QUESTION 3 The Company's expenses include costs of new landscaping at their administration building in the amount of $11,800 all of which was paid in the year. For accounting purposes this was treated as an asset and was amortized accordingly.

QUESTION 4 The Company's expenses include donations to registered charities of $4,600.

QUESTION 5 The Company expensed $5,000 for country club memberships for their top executives.

QUESTION 6 During the year, the Company acquired a competing business at a price that included goodwill of $16,100. For accounting purposes, there has been no impairment or write-down of the goodwill since its purchase. The Company does not own any other intangible property.

QUESTION 7 As the Company changed property and casualty insurers during the year, all of its assets had to be appraised. The cost of this appraisal was $2,970, with the entire amount being expensed in the year.

QUESTION 8 The company deducted Bad Debt Expense in the amount of $6,300 on their Income Statement. This amount was the total of actual bad debt write-offs for the year. They did not set up an Allowance for Doubtful Accounts for accounting purposes. For tax purposes, the Company deducted a reserve of $8,000 for the taxation year ending December 31, 2019. A reasonable estimate of doubtful debts for the year ending December 31, 2020 is $4,000.

QUESTION 9 The Company has a separate Class 1 balance of $1867,000 at the beginning of the year. This balance relates to a single office building that was purchased in a prior year for $3421,000. During the year, the company renovated the building at a cost of $93,000. This building is eligible for the enhanced Class 1 rate of 6%.

QUESTION 10 The Company has a Class 8 balance of $8,100 at the beginning of the year relating to their office furniture. The Company disposed of all remaining assets in Class 8 during the renovation of the office building. The capital cost of these assets was $19,100 and the proceeds of disposition amounted to $4,700. The company has chosen to lease office furniture going forward so no additional Class 8 assets were purchased in the year. Ignore any accounting loss that would have resulted from this transaction.

QUESTION 11 The company spent $3,300 on advertising on a US TV station. The ad was meant to attract American customers to use ABC's online offerings.

QUESTION 12 The company spent $4,700 on advertising in a foreign magazine. The ads were targeting Canadian customers in an ethnic neighbourhood where the foreign magazine is very popular.

QUESTION 13 The Company has a Class 10.1 UCC balance of $20,400 at the beginning of the year. This balance relates to a passenger vehicle that was purchased for an executive several years ago at a price of $39,000. The vehicle was sold during the year for $8,000. Ignore any accounting loss that would result from this transaction.

QUESTION 14 The Company has a balance in Class 13 that relates to a single lease that commenced on January 1, 2019. The lease term is 3 year(s) with no renewal options specified. Expenditures on this leasehold were $10,000 in 2019. There have not been any further expenditures. The write-off of these expenditures for accounting purposes is included in Amortization Expense.

QUESTION 15 At the beginning of the year, the Company had a separate Class 1 UCC balance of $2857,000 for a factory that they own. This building is eligible for the enhanced Class 1 rate of 10% for Manufacturing and Processing Buildings. The original capital cost of the building was $4868,000. There are no substantial changes to the factory building during the year.

QUESTION 16 The Company expensed $100,500 in Depreciation and Amortization during the year.

QUESTION 17 Future Income Tax Expense in the amount of $3,300 was deducted to arrive at Net Loss for Accounting Purposes.