AP 6-6 Mole ProprietorshipBusiness Income with CQA)

Kelonay is an accountant who carries on his practice as a sole proprietor. The practice has a calendar-based fiscal period ending December 31.

Kelonay carves on the business in a building that he owns. He purchased the building in 2019

for $550,000, with the estimated value of the land at that time being $125,100 and the remaining $425,000 attributable to the building. Keloney's practice occupies 100% of the building and, because it was a new building when he purchased it, he has elected to place it in a separate class 1. on January 1, 7073, the UCC of the building is $380.000.

because he is attracting an increasingly wealthy clientele, Kelonay has decided to upgrade his

office. In February 2023, he replaces all his old furniture and fixtures, The old furniture and fixtures had a capital cost of $65,000 and an opening UCC of $41,000 It is all sold for $22,000. The new furniture and fixtures have a capital cost of S136,000.

Other property purchases in 2023 are as follows:

New computer $1,800

Applications software 2,700

Client list from retiring accountant 32,000

Because he has started to provide in-home services 'or many of his clients, he has an automobile that is used almost exclusively for this purpose, kelonay purchased the automobile for S56,000 on January 1. 2023. The automobile is not a zero-emission vehicle. In 2023, he drives a total of 23,000 kilometres, of which 21,000 kilometres felate to business use and only 2,000 kilometres for personal use. Operating expenses for 2023 are $4,140.

Other 2023 business expenses, determined on an accrual basis, are the following!

Building operating expenses $18,600

Payments to assistants 31.200

Miscellaneous office expenses 9,400

Meals with clients $10,500

Revenues for the 2023 fiscal period, were $224.003.

Required: Calculate the minimum business income kelonay would include in his net income for

2023. Ignore immediate expensing and any GST/HST &PST considerations.