Bergeron Ltd. (BL) is a Canadian Controlled Private Corporation with a December 31 fiscal year-end. For the 2021 year, BL reported accounting net income, calculated in accordance with ASPE, of $700,000. Included in net income are the following items:

1. 1. A $30,000 bonus to BL’s CEO. Since the CEO anticipates retiring at the end of 2021, the bonus will not be paid until January 2023.
2. 2. A $24,000 reserve for inventory obsolescence was deducted for accounting purposes.
3. 3. Amortization expense of $125,000 was recorded for BL’s Class 1 building and Class 8 furniture and fixtures. Additional information for the two-class assets for CCA purposes are as follows:
   • Building – January 1, 2021, UCC for the building was $872,000. In 2021, the company spent $42,000 on improved flooring in all areas of the property. The building has been owned since 1995.
   • Furniture and fixtures – January 1, 2021, UCC balance was $285,000. In 2021, new furniture was acquired at a cost of $41,000. Old furniture with a capital cost of $28,000 was sold for $18,000.
4. 4. Interest expense of $15,000 was deducted for accounting purposes. This relates to a line of credit that was used to finance seasonal fluctuations in inventory.
5. 5. Promotion expenses for 2021 totaled $45,000, of which $33,000 is related to business meals and entertainment and $12,000 is for golf club memberships.
6. 6. An accounting gain of $7,800 was realized on the sale of investments. This gain is equal to the capital gain for tax purposes.
7. 7. Dividend income was $2,800. These dividends were received from a taxable Canadian corporation.
8. 8. Charitable donations of $8,200 were deducted for accounting purposes.

Other relevant information:

1. a. BL reported the following carryforward balances at the beginning of 2021:

Non-capital loss (from 2019)	$24,600
Net capital loss (from 2015)	$7,200

2. b. BL is associated with Ribeiro Inc. (RI), a CCPC because RI owns 70% of BL’s common shares. The two companies share the annual business limit 60/40, with BL receiving the larger share. Taxable capital employed in Canada and Adjusted Aggregate Investment Income of these corporations in 2020 were reported as follows:

TCEC	AAII
BL	$3,500,000	$35,000
RI	$6,000,000	$25,000

3. c. All of BL’s income is active business income earned in Canada through its permanent establishments in Canadian provinces.

REQUIRED:

1. -Calculate minimum Net Income for Tax Purposes (NIFTP) for BL in 2021.
2. -Calculate minimum Taxable Income for BL in 2021. Indicate any loss carryover balances remaining.