Ashton Aresnault is the sole shareholder of Aresnault 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. provides you with the Income Statement for the corporation for December$31,2020.$

Calculate the net business income for Aresnault Enterprises Ltd$.$ for the year $2020.$

Correct answer is $$152680,$ please tell me how to get to this answer in detail.

Data:

Income Statement

Income: $605000$

Cost of Goods Sold: $244,000$

Gross profit: $361,000$

Expenses

Accounting and legal expenses $($Note $2)3,800$

Advertising and promotion expenses $($Note $3)4,800$

Depreciation expense $($Note $4)26,800$

Automobile expenses $7,400$

Bad debts expense $($Note $5)4,200$

Insurance expense $($Note $6)7,800$

Interest Expense $18,400$

Office Expenses $($Note $7)12,000$

Rent expense $38,000$

Wages and benefits expenses $($Note $8)106,000$

Total expenses: $229,200$

Net Income: $$131,800$

$1.$ Aresenault Enterprises Ltd$.$ is a small business corporation operated by the sole shareholder, Ashton Aresenault.

$2.$ Accounting and legal includes legal fees related to Ashton's dispute in regards to a personal car accident in the amount of $$1,940.$

$3.$ Advertising and promotion includes 'Meals and Entertainment' costs in the amount of $$4,270.$

$4.$ 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$)$: $$45,450$

Class $10($Automotive Equipment$)$: $$25,800.$

$5.$ 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 Ashton Aresenault in the amount of $$2,600.$ This life insurance policy is required as collateral for the business bank loan.

$7.$ Office expenses include the $$5,800$ 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 $$5,820.$ The club dues are paid for the five managers

who take clients to the Royal Oak Club on a regular basis for business purposes.

Correct answer is $$152680,$ please tell me how to get to this answer in detail.