Sharp Ltd. incurred the following expenses in the current year:
• $25,000 in legal and accounting fees with respect to the issue of a new class of preferred shares.
• $8,000 for landscaping around the office building.
• $1,200 in interest paid to the CRA for late income tax instalments.
• $2,700 in interest on funds borrowed to finance the purchase of new office equipment.
• $40,000 in scientific research and experimental development expenditures.
• $80,000 in stock-based compensation expense.
Comment on the deductibility for tax purposes of each of the expenses. Income tax reference: ITA 7(3), 18, 20(1), 37(1), (2).