Caneco Lts. Is a Canadian-controlled private corporation, owning a portfolio of investments including stocks, bonds and rental properties. The financial statements for the year ended June 30, 2020 show a profit of $124,300, summarized as follows:

Bond interest	$60,000
Taxable dividends from Canadian corporations	$30,000
Gain on sale of assets	40,000
Rental loss	(5,700)
Income before income taxes	$124,300

Additional financial information is outlined below.

1. The previous years corporation tax return includes the following tax account balances:
2. Undepreciated capital cost

Building A Class1 $126,000

Building B Class 1 35,000

Building C Class 1 46,000

3. Taxable Canadian dividends totalling $30,000, include $18,000 from public corporations and $12,000 from XYZ ltd, a Canadian-controlled private corporation. Caneco owns 30% of the X Ltds common shares.
4. The rental properties were purchased prior to March 18, 2007 as follows:

Land Cost Building Cost Total

Property A $20,000 $130,000 $150,000

Property B 35,000 40,000 75,000

Property C 21,000 49,000 70,000

On February 28^th, 2020 Property A was sold for $170,000 (land $30,000, building $140,000) and property B was sold for $77,000 (land $40,000, building $37,000).

The combined rentals resulted in a loss of $5,700 after deducting amortization/ depreciation of $3,000 for the year ended June 30, 2020. The rental revenue includes a $1,000 rental deposit applied to the last two months rent on a lease expiring December 1, 2021.

For the year ended June 30^th 2019, Caneco Ltd deducted a reserve for unpaid rents of $2,000. In January 2020, $1,000 of the unpaid rents was received and credited to the rent receivable account. No reserve has been claimed at June 30^th 2020. However, $1,200 of the current years rents remains unpaid.

Required:

Determine Canecos minimum net income for tax purposes for the 2020 taxation year.

(Work must be shown for marks to be awarded, and explanations if there are any omitted items)