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Use following information to answer qucstions $1$ and $2$ below.

For the year ending December $31,2023,$ the Income Statement of Sonata Ltd$..$ prepared in accordance with generally accepted accounting principles, is as follows:

Revenues

$$973,000$

Expenses:

Cost Of Goods Sold

$($$$272,000)$

Selling And Administrative Costs

$(132,000)$

Amortization Expense

$(156\mathrm{.}000)$

Other Expenses

$(137\mathrm{.}000)$

Income Tax Expense:

Current

$($$ $97,000)$

Future

$\_(32,000).$

$(129,000)$

Net Income

$$147,000$

Other Information:

$$The Company spent $$6,000$ during the year on landscaping for its new building. For accounting purposes this was treated as an asset. The Company will not amortize this balance as it believes the work has an unlimited life.

$$Selling And Administrative Costs include $$15,000$ in business meals and entertainment.

$$Selling And Administrative Costs include membership fees for several employees in a local golf and country club. These fees total $$3\mathrm{.}400-$

$$Other Expenses include contributions to registered charities of $$3,700.$

$$Other Expenses includes bond discount amortization of $$2,500.$

$$A part of the Company's raw materials had to be imported from Brazil. In order to obtain local financing for these inventories, the Company paid $$1,200$ fee to a Brazilian financial consultant for assistance in locating the required financing.

$$As the Company expects to issue more shares during $2024,$ it made a number of amendments to its articles of incorporation in $2023$ and included the legal costs in Other Expenses. These costs totaled $$6,000$

On January $1,2023,$ the Company has UCC balances for its tangible assets as tollows:

Class $1$ $$400\mathrm{.}000(6\%)$

Class $8$ $$75,000$

Class $1045,000$

Class $1368,000$

The company purchased land and constructed a new building on it during the year. The building will be used $95\%$ for non$-$residential purposes. An election was made to include the building in a separate class $1.$ The cost of the land was $$350,000,$ and the building cost $$475,000$ to construct.

There are no dispositions of Class $8$ assets during the year. However, there are acquisitions in the total amount of $$126,000.$

As the Company has decided to lease all of its vehicles in the future, all of the assets in Class $10$ are sold during the year. The capital cost of these assets was $$93,000$ and the proceeds of disposition amounted to $$37\mathrm{.}000.$ The net book value of these assets was $$52\mathrm{.}000$ and the resulting accounting loss of $$15,000$ was included in Other Expenses.

The Class $13$ balance relates to a single lease that commenced on January $1,2021.$ The lease has an initial term of seven years, with two successive options to renew for three years each.

Expenditures on this leasehold were $$50,000$ in $2021$ and $$27,000$ in $2022.$ There were no further expenditures in $2023.$ The write$-$off of these expenditures for accounting purposes is included in

Amortization Expense.

During $2023,$ Sonata Ltd$.$ acquired a competing business at a price that included goodwill of $$70,000.$ For accounting purposes, there has been no impairment or write$-$down of the goodwill

since its purchase.

$$Other Expenses includes interest on late income tax instalments of $$500$ and on late municipal tax payments of $$275.$

$$Included in the accounting expenses was $$7,200$ of sponsoring local soccer teams.

$$Other Expenses includes $$9,600$ advertising on a foreign television station $($Directed at

Canadian market$).$

$12.$ The company expenses included $$12,400$ for advertising circulars $($only one$-$quarter distributed$).$

Required:

Class $1$ old building

Maximum CCA $($positive number$)$

Class $8$

Maximum CCA $($positive number$)$

Class $10$

Terminal loss $($negative number$)$

or Recapture $($positive number$)$

Class $13$

Maximum CCA $($positive number$)$

Class $14\mathrm{.}1$

Maximum CCA $($positive number$)$

Class $1$ new building

Maximum CCA $($positive number$)$

Accounting Income $($Loss$)$

Schedule $1$ Adjustments:

$$Enter deductions as a negative number using minus sign or brackets

$$Enter additions as a positive number

$$Enter $0$ if no adjustment is required

$$Do not use a comma or a dollar sign in your response

Amortization Expense

Income Tax Expense

Item $1$: Landscaping

Item $2$: Meals and Entertainment

Item $3$: Membership fees

Item $4$: Contributions to Charities

Item $5$: Bond Discount Amortization

Item $6$: Cost of Financing

Item $7$: Amendment Costs

Item $8$: Accounting Loss on Class $10$

Item $8$: CCA $($from Question $1)$

Item $8$: Terminal Loss, if any, from Q$1$

Item $8$: Recapture, if any, from Q$1$

Item $9$: Interest

Item $10$: Sponsoring Soccer Team

Item $11$: Cost of Advertising

Item $12$: Advertising Circulars

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