$2$uestion $12(3$ points$)$

Determine the effect of the following item on the reconciliation of Net Income for Accounting

Purposes to minimum Net Income for Tax Purposes $($NIFTP$).$

Additions in reconciliation should be entered in the box as a positive number $($write only

numbers, do not write $"+"$ sign$).$

Deductions in reconciliation should be entered in the box as a negative number.

If the item would have no effect on the reconciliation, enter the number $0($zero$)$ in the

box.

On December $1$ of the year, the Company purchased a franchise for $$31,745.$ The franchise has a limited life of $10$ years. Determine the net effect of this CCA deduction on NIFTP.

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