Window Shine Ltd. was incorporated on July 1, 2022, and purchased an existing business on...
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Accounting
Window Shine Ltd. was incorporated on July 1, 2022, and purchased an existing business on the same date. The purchase included the following assets: Immediately after incorporation, the company moved into leased premises, having signed a lease for three years with an option to renew for an additional three. Rental payments of $2,000 per month began in July. The premises required alterations, and in July, the company incurred costs of $24,000 for these. The franchise that was purchased for $15,000 has a remaining legal life of five years. At the end of the five-year period, the franchise may be renewed at a nominal cost only if the franchiser is satisfied with the performance of the franchisee. The company's fiscal year-end is June 30, 2023. A brief financial statement for this first year of operations is presented in the following chart. Required: Determine the corporation's business income for tax purposes for 2023. Assume none of the assets are designated as immediate expensing property
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