Austin

Aresenault

is the sole shareholder of

Aresenault

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.

Austin

provides you with the Income Statement for the corporation for December 31,

2020.

Aresenault Enterprises Ltd. Income Statement For the year ended December 31, 2020 Income Sales $615,000 Cost of sales $53,000 Opening inventory 258,000 Purchases 311,000 Closing inventory 64,000 Total Cost of Goods Sold 247,000 Gross profit 368,000 Expenses Accounting and legal expenses (Note 2) 4,200 Advertising and promotion expenses (Note 3) 5,600 Depreciation expense (Note 4) 25,400 Automobile expenses 7,000 Bad debts expense (Note 5) 3,800 Insurance expense (Note 6) 8,000 Interest expense 18,800 Office expenses (Note 7) 13,000 Rent expense 37,500 Wages and benefits expenses (Note 8) 114,000 Total expenses 237,300 Net income $130,700

Calculate the net business income for

Aresenault

Enterprises Ltd. for

2020.

(Round to the nearest dollar.)

The net income for

2020

is

$enter your response here.

1.	Aresenault Enterprises Ltd. is a small business corporation operated by the sole shareholder, Austin Aresenault.
2.	Accounting and legal includes legal fees related to Austin's dispute in regards to a personal car accident in the amount of $1,980.
3.	Advertising and promotion includes 'Meals and Entertainment' costs in the amount of $4,280.
4.	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): $24,000.
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 Austin Aresenault in the amount of $3,800. This life insurance policy is required as collateral for the business bank loan.
7.	Office expenses include the $4,800 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 $5,960. The club dues are paid for the five managers who take clients to the Royal Oak Club on a regular basis for business purposes.