You have been asked to reconcile accounting income to income from business for tax purposes for your client, Waterloo Industries Ltd. The income statement for the year ended December 31, 2020 is shown below: Waterloo Industries Lid. Statement of Income Year Ended December 31, 2020 Sales $4,780.000 Cost of sales 3.500.000 Gross profit $1,220 000 Expenses Selling General and administrative Amortization Interest on long-term debt Other interest $ 395.000 305,000 230,000 37 000 55 000 $ $1.022.000 Other income Gain on sale of faxed asset Income from other investments $ 1 900 109000 $ 110 900 Income before income taxes $_308 900 Income taxes: Current $ 90.000 Nel income $ 218 900 During your review of the working paper filc and last year's tax return you have made the following notes to yourself, because you think that there might be tax implications associated with these items 1. Included in general and administrative expenses are the following transactions (a) landscaping $17,000 b) cost associated with the valuation of land 2.800 c) donations consisting of $63,000 to registered charities and $1,000 to registered political parties 64,000 d) premium for term life insurance policy on the president in which the company is the bencficiary and the policy is used as collateral for a bank operating line of credit 22 200 le) memberships in private clubs for senior executives 3200 10) meals and entertainment with clients 12,000 (9) 9 cost of employee training seminar to teach employees about new provincial workplace safely laws 7,200 h) cost of seasonal holiday party to which all employees were invited 17.700 (1) accrued bonuses paid July 30, 2021 30 000 2 Included in interest expense on long-term debt and other interest are the following transactions a) bond interest paid to November 30, 2020 $10,000 bond interest accrued to December 31, 2020 , 950 b) interest and penalties on late income tax instalments 1.200 3. Included in other income are the following transactions: (a) the gain on sale of fixed asset arose from the sale of an oil painting hung in the office of the Director of Taxation: the painting cost $18,000 in 2012 and was sold for $19,900 (b) income from other investments indudes the receipt of a cash dividend of $7,500 from the subsidiary Corporation 4. The company calculated the CCA for the year-maximum deductable is $180,000. Assume the calculation is correct Required: Prepare the requested reconciliation and compute income from business for tax purposes