The controller of Video Madness Inc. has prepared the accounting income statement for the year ended April 30, 2012:
VIDEO MADNESS INC.
INCOME STATEMENT
FOR THE YEAR ENDED APRIL 30, 2012

REQUIRED
Prepare a schedule reconciling the accounting net income to income for tax purposes and taxable income. Indicate the appropriate statutory reference for your inclusions or exclusions.

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$995,000 185,000 (708,000) $287,000 55,000 S342,000 (102,000) $240,000 (1) Included in the calculation of Administrative expenses" (a) Interest on late income tax payments . . . . . (b) Amortization (maximurn capital cost allowance of $149,500) . . . . . . . . (c) Club dues for the local Country Club . . , . . . . . . . . . . . . . . . . . $435 104,900 1,750 2 () Property tax with respect to vacant land not being used in the course of the business ·..-.. , , , , , , , , , , , . . . . . .. . . . . . . . (g) Life insurance premium with respect to the president (the company is the beneficiary; not required for financing) 1,950 (2) Included in the calculation of "Other income and expenses" 4,800 (a) Landscaping of ground around new premise . . . .. . . . .. . . (b) Fees paid with respect to the investigation of a suitable site for the (c) Dividends received from taxable Canadian corporation of $42,800 and foreign corporation dividends received (not from a foreign affiliate of C$5,500. .. . . 48,300 126,200 (d) Gain from the sale of another piece of land, used in the business, sold for $200,000 in March (purchased for $73,800). . (e) Loss on sale of investments held as capital property purchased for (3) Loss carryforwards from 2011 are: (a) Non-capital losses.... (b) Net capital losses (realized in 1999) .. 73,800 75,000 .