Question $9(25$ points$)$

Marcus Laramore operates a proprietorship that sells sports memorabilia. It has been in operation for several years and has always used a taxation year that ends on December $31.$

Marcus' business does not have any debt and he is not required to provide anyone with financial statements, so he has always calculated his Net Income for Taxation Purposes himself. He likes this because it has saved him the cost of hiring an accountant or bookkeeper.

For the year ending December $31,2018,$ using his usual tax procedures, Marcus calculated his net business income to be $$547,600.$

Business has been booming and Marcus is debating opening a second location. In order to do so$,$ Marcus would require a loan from a financial institution, and would subsequently be required to create business financial statements, as per a comversation Marcus had with a loan officer at his locat bank.