The controller of Mead Pipes Ltd. is completing the preparation of the corporation’s

20X1 tax return but is uncertain about the tax treatment of the following eight expense items:

1. Finder’s fee to obtain a mortgage on the company’s buildings $6,000

2. Property taxes on the company’s new fishing lodge, which is used by employees 1,200

3. Interest for late payment of municipal property taxes for the warehouse 600

4. Brokers’ fees for the purchase of publicly traded shares 1,400

5. Permanent landscaping of land around the head office buildings 4,800

6. Cost of investigating a site for a proposed warehouse, when the site was rejected 2,000

7. Hockey tickets to entertain customers 1,800

8. Reserve for the possible costs for guarantees of products sold in the year 8,000

Required:

Determine the amount by which the preceding items will reduce the net income for tax purposes of Mead Pipes Ltd. for 20X1. When an item has been totally excluded from your calculation, provide a brief reason why.