The controller of Video Madness Inc. has prepared the accounting

The controller of Video Madness Inc. has prepared the accounting income statement for the year ended April 30, 2014: Sales: 905,000 Less: Cost of Sales: 523,000 Less: Administration Expenses: 185,000 Total: Operation Income : 287,000 Add: Other Income and expenses : 55,000 Total: 342,000 Less: Provision for income taxes: (102,000) Total: Net Income: 240,000 Other Information: Included in calculation of Administration expenses: A) Interest on late income tax payments - 435 B) Amortization (maximum CCA of 149,500) – 104,900 C) Club dues for local country club – 1,750 D) Federal political contributions – 2,500 E) Donations to registered charities – 22,500 F) Property tax with respect to vacant land not being used in the course of the business – 3,000 G) Life insurance premium with respect to the president (the company is the beneficiary) – 1,950 2) Included in the calculation of “other income and expenses” a) landscaping of ground around new premise – 4,800 b) Fees paid with respect to the investigation of a sustainable site for the company’s manufacturing plant – 5,500 c) Dividends received from taxable Canadian corporation of 42,800 and foreign corporation dividends received (not from a foreign affiliate) of - 5,500 d) Gain from the sale of another piece of land used in the business, sold for 200,000 in March (purchased for 73,800) – 126,200 e) Loss on sale of investments held as capital property purchased for 85,000 and sold for 75,000 – 10,000 3) Loss carry forwards from 2013 are: a) Non-capital losses – 73,800 b) Non-capital losses (realized in 1999_ - 75,000 You have been asked to 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.