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Morgon Industries is a proprietorship owned by Helen Morgon. Its taxation year ends on December 31. For the current taxation year, Ms. Morgon's daughter, Summer, who keeps the books for the business, has calculated a Net Income for Morgon Industries of $193,200. In calculating this figure, Summer used generally accepted accounting principles. Other Information: 1. The following items were included in the accounting expenses: Amortization expense $69,300 Golf club membership fees for Helen and Summer 15,000 Cost of sponsoring local soccer teams 7,200 Advertising on a foreign television station (Directed at Canadian market) 9,600 Business meals and entertainment 22,000 Charitable donations 31,900 Loss from theft 16,200 Interest paid on building mortgage 24,200 Interest paid on late income tax installments 1,400 2. Included in the accounting expenses were $14,000 in fees paid to Summer's 16 year old son for creating and maintaining the web site of Morgon Inc. In pricing this work, Helen found that it would cost at least $25,000 to obtain the equivalent services from an outside consultant. 3. Maximum CCA has been determined to be $94,200 for the current taxation year. 4. As the business is unincorporated, no taxes were deducted in calculating Net Income. Required (10 marks): Calculate the minimum net business income for Morgon that will be included in Helen Morgon's tax return for the current taxation year. Indicate why you have not included any of the preceding items in your calculations. Morgon Industries is a proprietorship owned by Helen Morgon. Its taxation year ends on December 31. For the current taxation year, Ms. Morgon's daughter, Summer, who keeps the books for the business, has calculated a Net Income for Morgon Industries of $193,200. In calculating this figure, Summer used generally accepted accounting principles. Other Information: 1. The following items were included in the accounting expenses: Amortization expense $69,300 Golf club membership fees for Helen and Summer 15,000 Cost of sponsoring local soccer teams 7,200 Advertising on a foreign television station (Directed at Canadian market) 9,600 Business meals and entertainment 22,000 Charitable donations 31,900 Loss from theft 16,200 Interest paid on building mortgage 24,200 Interest paid on late income tax installments 1,400 2. Included in the accounting expenses were $14,000 in fees paid to Summer's 16 year old son for creating and maintaining the web site of Morgon Inc. In pricing this work, Helen found that it would cost at least $25,000 to obtain the equivalent services from an outside consultant. 3. Maximum CCA has been determined to be $94,200 for the current taxation year. 4. As the business is unincorporated, no taxes were deducted in calculating Net Income. Required (10 marks): Calculate the minimum net business income for Morgon that will be included in Helen Morgon's tax return for the current taxation year. Indicate why you have not included any of the preceding items in your calculations

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