A condensed income statement for Fly's Inc. (clothing store) for its year, ended December 31, 2020, shows the following:

Sales

Fly's Inc.

Condensed Income Statement

For the Year Ended December 31, 2020

Sales	$1932
Cost of Sales	(1,439)
Gross profit	493
General and administrative expense	(279)
Other	(54)
Income before income taxes	160
Income tax expense	(13)
Net Income	147

An analysis of the cost of sales account revealed that the inventory is valued at average cost within each of the different styles carried. Since the owner is still learning what has appeal, a "mark-down rack" has become a common fixture at the back of the store. The tagged prices of the mark-downs are less than their costs, at December 31, 2020 by $700. This difference has not been recorded in the financial statements.

The cost of goods sold includes a charge of $1,800 to set up an allowance for returns (at 0.1% of sales) that are not subsequently saleable at full retail price. No such allowance was recorded last year-end because the company only discovered that the allowance was necessary this year.

General and administrative expenses include the following:

The company paid the following amounts to Sun Insurance Limited during the year:

Group term life insurance for the four full-time employees $2,200

$200,000 term life insurance policy on the president, which was

included in the "Insurance" expense account 900

$3100

Fly's Inc. is the beneficiary of the insurance policy on the president. The term life insurance policy on the president was assigned to the bank as collateral for a $500,000 loan from January 1 through August 30, 2020. The loan was repaid on September 1, 2020 in favour of an operating line of credit.

The following selected information was taken from the "Promotions" account:

Charitable donation to the local United Way	$4500
Political contributions to the local politicians	2500
Hockey tickets given to suppliers as Christmas gifts	2800
Meals and entertainment incurred by the owner while negotiating with suppliers	2000
Golf green fees incurred while entertaining suppliers	1800
Staff party full costume occasions for staff and "significant others"	12000
Account total	$25,600

The company's "Professional expense" account included the following legal and accounting fees:

Accounting fees for yearend work and monthly bookkeeping: $15,000

Legal fees incurred on the purchase of capital assets during the year: 2,000

Legal and accounting fees incurred in connection with negotiations for a line of credit at the bank: 4,000

Account total. $21,000

In 2019, the company incurred fees of $1,000 to issue shares to the president and CEO.

Other expenses deducted in the financial accounting computation of income include:

Depreciation and amortization	$47,000
Interest on the loan and operating line of credit	7,500
Interest on insufficient income tax instalments	400
Purchase of additional store fixtures bought at a going-out-of- business sale; expensed due to their small dollar amount	1500
Damages under a breach of contract suit initiated by a supplier	1700
Total	$58,100

Added to the capital asset account for leasehold improvements this year is $15,000. This amount represents the store's share of new landscaping of the strip mall premises that was undertaken after road work was done in front of the mall.

You have correctly determined that Fly's Inc. is entitled to a $50,000 capital cost allowance amount claim in 2020.

Required:

Based on the foregoing information, compute the income from business for tax purposes for Fly's Inc. for its 2020 fiscal year. Show all calculations whether or not they seem relevant to the final answer.