Ajay Reagan has an unincorporated business with a December 31 year end. Ajay operates this business out of a building which he owns. He purchased this new building in 2016 for $550,000. The business occuples 100 percent of the building and it has been allocated to a separate Class 1. The building is not used for manufacturing or processing. On January 1, 2020, the building has a UCC of $380,000. During February 2020, he disposed of all his furniture and fixtures. The old furniture and fixtures had a capital cost of $65.000 and a UCC of $41,000. It is sold for $22.000. Ajay recently became a member of the local golf and country club; its annual fees total $3,400. He regularly takes clients to the club for matches. Alay was late making several remittances and was required to pay $750 in late penalties to CRA and $410 in late penalties for overdue municipal taxes During 2020, Ajay had total revenue of $250.000. Other 2020 expenses, determined on an accrual basis. are as follows: Building operating costs $18,600 Employee wages 31.200 Miscellaneous office costs 9.400 Business meals with clients 10.500 Insurance - office contents 1.250 Life insurance on Ajay Ispouse is the beneficiary) 3.000 Donation to a registered charity 500 Fees paid to recover accounts receivable outstanding. 1.100 Required a) Calculate the minimum net business Income Ajay would include in his 2020 personal income tax retum (11 marks] b) ust the items which are not deductible against net business income. [4 marks) A B 1 III % ta) X E b) Ust the items which are not deductible against net business income. (4 marks) A B T iii III. (a) Total revenue Less: Net business income (b) items which are not deductible against business income. 1