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Income
Sales		$605,000
Cost of sales	$53,000
Opening inventory	258,000
Purchases	311,000
Closing inventory	56,000
Total Cost of Goods Sold		255,000
Gross profit		350,000
Expenses
Accounting and legal expenses (Note 2)	3,400
Advertising and promotion expenses (Note 3)	4,800
Depreciation expense (Note 4)	25,800
Automobile expenses	7,600
Bad debts expense (Note 5)	4,200
Insurance expense (Note 6)	7,400
Interest expense	19,600
Office expenses (Note 7)	12,000
Rent expense	34,500
Wages and benefits expenses (Note 8)	102,000
Total expenses		221,300
Net income		$128,700

Canadian tax system!

Asher McLaughlin is the sole shareholder of McLaughlin Enterprises Ltd., a small retail shop selling locally made arts and crafts. The shop has been in operation for several years and has a calendar fiscal year. Asher provides you with the Income Statement for the corporation for December 31,2020. (Click on the icon to view the income statement.) (Click on the icon to view the notes to the income statement.) Calculate the net business income for McLaughlin Enterprises Ltd. for the year 2020. Calculate the net business income for McLaughlin Enterprises Ltd. for 2020. (Round to the nearest dollar.) The net income for 2020 is $ Notes to income statement 1. McLaughlin Enterprises Ltd. is a small business corporation operated by the sole shareholder, Asher McLaughlin. 2. Accounting and legal includes legal fees related to Asher's dispute in regards to a personal car accident in the amount of $2,040. 3. Advertising and promotion includes 'Meals and Entertainment' costs in the amount of $4,240. 4. Information for Capital Cost Allowance (CCA) purposes-the Undepreciated Capital Cost (UCC) at December 31 of the prior year was as follows: Class 8 (Office \& General Equipment): \$45,350 Class 10 (Automotive Equipment): \$24,200. 5. The company has set up an allowance for doubtful accounts based on a review of the Accounts Receivable at December 31 of the current year. This is a procedure that the proprietorship follows every year. 6. Insurance includes life insurance premiums for Asher McLaughlin in the amount of $2,200. This life insurance policy is required as collateral for the business bank loan. 7. Office expenses include the $5,400 purchase of laptop computers on January 15,2020. 8. Wages and benefits includes the club dues/membership fees paid to the Royal Oak Club in the amount of $5,860. The club dues are paid for the five managers who take clients to the Royal Oak Club on a regular basis for business purposes. Asher McLaughlin is the sole shareholder of McLaughlin Enterprises Ltd., a small retail shop selling locally made arts and crafts. The shop has been in operation for several years and has a calendar fiscal year. Asher provides you with the Income Statement for the corporation for December 31,2020. (Click on the icon to view the income statement.) (Click on the icon to view the notes to the income statement.) Calculate the net business income for McLaughlin Enterprises Ltd. for the year 2020. Calculate the net business income for McLaughlin Enterprises Ltd. for 2020. (Round to the nearest dollar.) The net income for 2020 is $ Notes to income statement 1. McLaughlin Enterprises Ltd. is a small business corporation operated by the sole shareholder, Asher McLaughlin. 2. Accounting and legal includes legal fees related to Asher's dispute in regards to a personal car accident in the amount of $2,040. 3. Advertising and promotion includes 'Meals and Entertainment' costs in the amount of $4,240. 4. Information for Capital Cost Allowance (CCA) purposes-the Undepreciated Capital Cost (UCC) at December 31 of the prior year was as follows: Class 8 (Office \& General Equipment): \$45,350 Class 10 (Automotive Equipment): \$24,200. 5. The company has set up an allowance for doubtful accounts based on a review of the Accounts Receivable at December 31 of the current year. This is a procedure that the proprietorship follows every year. 6. Insurance includes life insurance premiums for Asher McLaughlin in the amount of $2,200. This life insurance policy is required as collateral for the business bank loan. 7. Office expenses include the $5,400 purchase of laptop computers on January 15,2020. 8. Wages and benefits includes the club dues/membership fees paid to the Royal Oak Club in the amount of $5,860. The club dues are paid for the five managers who take clients to the Royal Oak Club on a regular basis for business purposes

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