You are working with TAX consultant group, new client; Leduc Corporation asks you to help them to identify their taxable Income, and they provide you with the following information. Leduc co. is a Canadian Controlled Private Corporation, its business activity importing consumer goods from South Africa, and distribute to different retailers in Canada. They provide you with their Income statement before taxes for the year ending Dec 31,2017. Leduc Corp. Income Statement Year ending Dec 31, 2017 Sales Revenue Cost of Goods Sold Gross Profit 6,600,000 1,400,000 6000 Accounting & Legal fees (NI Training expense Wages and Salaries Transportation and delivery Depreciation expense Rent and office expense Other expense (N2) Operating Income 24,000 308,000 18,000 50,000 289.000 (765,000) 167 802,000 Income before Taxes Income Tax Expense Net Income 706h Leduc corp. did not complete their Balance Sheet but they provide you with some accounts balances you might need: Equipment $213,000 (net of $207,000 Accumulated Amortization, the original costs was $ 420,000, Jan 1, 2014 UCC $128,000 all equipment's in class 8 (CCA rate 20%). - Retained Earnings $2,000,000. NI) S1,000 of the legal fees related to lawyer payment to register the main shareholder home N2) other expense paid by Leduc corp. includes the following: Interest paid on the business line of credits17,000 and fuel costs $74,000 - Charitable Donation $65,000Hdb -Meals and entertainment $ 16,500back - CEO, Province of Alberta Golf club membership dues $ 12,800A - professional service fees $33,000 -Appraisal fee to determine valuation of large machine $3,700 - New York newspaper add targets the American residents $ 4,000 -aife insurance premiums on President life, insurance required by ATB Bank as collateral for the business line of credit $6,000 (the line of credit is $400,000 and the insurance for $800,000. This to secure the President afterin case of his death. Maintenance and landscaping for the president residence $57,000