Ashton Clemens is the sole shareholder of Clemens 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. Ashton provides you with the Income Statement for the corporation for December 31, 2020. (Click on the icon to view the income statement.) i (Click on the icon to view the notes to the income statement.) Calculate the net business income for Clemens Enterprises Ltd. for the year 2020. Calculate the net business income for Clemens Enterprises Ltd. for 2020. (Round to the nearest dollar.) The net income for 2020 is $ Clemens Enterprises Ltd. Income Statement For the year ended December 31, 2020 Income Sales 610,000 Cost of sales 51,000 240,000 Opening inventory Purchases 291,000 66,000 225,000 Closing inventory Gross profit 385,000 2,800 Expenses Accounting and legal (Note 2) Advertising and promotion (Note 3) Depreciation (Note 4) 5,800 26,800 Automobile expenses 6,200 3,600 Bad debts (Note 5) Insurance (Note 6) 8,400 Interest 18,400 Office expenses (Note 7) 12,000 Rent 37,500 118,000 Wages and benefits (Note 8) 239,500 Net income 145,500 1. 2. Clemens Enterprises Ltd. is a small business corporation operated by the sole shareholder, Ashton Clemens. Accounting and legal includes legal fees related to Ashton's dispute in regards to a personal car accident in the amount of $1,980. Advertising and promotion includes 'Meals and Entertainment' costs in the amount of $4,260. 3. 4. 5. Information for Capital Cost Allowance (CCA) purposesthe Undepreciated Capital Cost (UCC) at December 31 of the prior year was as follows: Class 8 (Office & General Equipment): $45,300 Class 10 (Automotive Equipment): $24,600. 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. Insurance includes life insurance premiums for Ashton Clemens in the amount of $2,800. This life insurance policy is required as collateral for the business bank loan. Office expenses include the $5,600 purchase of laptop computers on January 15, 2020. Wages and benefits includes the club dues/membership fees paid to the Royal Oak Club in the amount of $5,840. The club dues are paid for the five managers who take clients to the Royal Oak Club on a regular basis for business purposes. 6. 7. 8