Carol Basque is an experienced lawyer who came on a business of a professional practice sole proprietor, carries on her business out of building which the purchased several years ago for $725.000 with $1750 paid for the land and S550.000 for the building. The building is used exclusively for business purposes, and an election was led to include it in a separate Class The UCC on January 1, 2021 9447831 7 As her practice specializes in chies where lack of anger management has caused legal difficulties, she has had to replace her office furniture several times. The latest was during 2021, when the divorcing owners of martial arts club could not come to a peaceful resolution on in equitable split in family. A registered charity, Ex-Com R Usled her destroyed furniture away to be used for training purposes and as spare parts in their furniture repair shop. No insurance or other amounts were received with respect to the 10 damage 12. The old furniture had a capital cost of 532.000 and the new furniture was purchased for $78,000. The Class 8 UCC at January 1, 2021 1 was 538,160 TA IS 16 In January, 2019, Carol acquired a 592.000 Lexus that she uses largely for business purposes. She has concluded that, given the nature 12 of her clientele, this car appears too luxurious Based on this view, the trades it in on the purchase of a $28.000 Toyota. The January 1, 2021 UCC for the Lexus is $17.850 15 20 Because the Lexus had been badly damaged by an exiting client who lost his case, the trade in allowance that she receives is only 21 $22.000. During 2021, the Toyota is drive 41200 kilometers with 38.000 driven for business purposes and only 3.000 for personal use. The vehicle operating costs for the year word 56,150. Assume that the operating expenses for the Lexus were correctly calculated and included in the accounting op 23 24 Other 2021 purchases include the following: 25 26 28 3 4 Other 2021 purchases include the following: New Computer $1,250 Applications Software 1,475 27 Other 2021 business expenses, determined on an accrual basis, include the following: Building current expenses $27.300 29 Payments to Assistants (Note) 46,100 30 Miscellaneous Office Expenses 13,600 31 Meals with Clients (not billed to clients) 15.500 32 33 *Note - The payments include $25,000 paid to her 17 year old daughter. She works part time during the school year and full time 34 during the summer doing online research for Carol's practice. The fees paid to the daughter are considered reasonable (ITA 67). 36 During 2021, business revenues were $297,800 37 38 Required: Calculate the 2021 business income. In preparing your solution, ignore GST/HST and PST considerations and any 39 CPP implications. 35 40 41 42 Carol Basque Statement of Business Income For Year Ending December 31, 2021 44 CALCULATIONS 45 45 Total Revenue Vehicle Operating Costs Building Onerating unens -57 2 1 1 TOURI RUVCHIC Vehicle Operating Costs Building Operating Expenses Payments to Assistants (Payment to Daughter is reasonable) Miscellaneous Office expenses Business Meals CCA (Note) 2021 Business Income 1 1 0 0 SO 1 1 1 5 Note - The total CCA deductible would be as follows: 6 7 Class 1 8 Class 8 59 Class 50 50 Class 12 51 Class 10 62 Class 10.1 Total CCA for 2021 64 65 Class 8 - The required calculations are as follows 56 67 Opening UCC Additions 1 1 1 SO Class 10.1 TCCA2071 Class. The required calculations are as follows: 1 1 Opening UCC AS Disposal-Lewer of Proceeds 1 3 1 2 Accll Ads CCA B SO 9 Class RCA Class 10.1 - Recuperare, Terminal Low Half Year's CCA 00 Carol Basque is an experienced lawyer who came on a business of a professional practice sole proprietor, carries on her business out of building which the purchased several years ago for $725.000 with $1750 paid for the land and S550.000 for the building. The building is used exclusively for business purposes, and an election was led to include it in a separate Class The UCC on January 1, 2021 9447831 7 As her practice specializes in chies where lack of anger management has caused legal difficulties, she has had to replace her office furniture several times. The latest was during 2021, when the divorcing owners of martial arts club could not come to a peaceful resolution on in equitable split in family. A registered charity, Ex-Com R Usled her destroyed furniture away to be used for training purposes and as spare parts in their furniture repair shop. No insurance or other amounts were received with respect to the 10 damage 12. The old furniture had a capital cost of 532.000 and the new furniture was purchased for $78,000. The Class 8 UCC at January 1, 2021 1 was 538,160 TA IS 16 In January, 2019, Carol acquired a 592.000 Lexus that she uses largely for business purposes. She has concluded that, given the nature 12 of her clientele, this car appears too luxurious Based on this view, the trades it in on the purchase of a $28.000 Toyota. The January 1, 2021 UCC for the Lexus is $17.850 15 20 Because the Lexus had been badly damaged by an exiting client who lost his case, the trade in allowance that she receives is only 21 $22.000. During 2021, the Toyota is drive 41200 kilometers with 38.000 driven for business purposes and only 3.000 for personal use. The vehicle operating costs for the year word 56,150. Assume that the operating expenses for the Lexus were correctly calculated and included in the accounting op 23 24 Other 2021 purchases include the following: 25 26 28 3 4 Other 2021 purchases include the following: New Computer $1,250 Applications Software 1,475 27 Other 2021 business expenses, determined on an accrual basis, include the following: Building current expenses $27.300 29 Payments to Assistants (Note) 46,100 30 Miscellaneous Office Expenses 13,600 31 Meals with Clients (not billed to clients) 15.500 32 33 *Note - The payments include $25,000 paid to her 17 year old daughter. She works part time during the school year and full time 34 during the summer doing online research for Carol's practice. The fees paid to the daughter are considered reasonable (ITA 67). 36 During 2021, business revenues were $297,800 37 38 Required: Calculate the 2021 business income. In preparing your solution, ignore GST/HST and PST considerations and any 39 CPP implications. 35 40 41 42 Carol Basque Statement of Business Income For Year Ending December 31, 2021 44 CALCULATIONS 45 45 Total Revenue Vehicle Operating Costs Building Onerating unens -57 2 1 1 TOURI RUVCHIC Vehicle Operating Costs Building Operating Expenses Payments to Assistants (Payment to Daughter is reasonable) Miscellaneous Office expenses Business Meals CCA (Note) 2021 Business Income 1 1 0 0 SO 1 1 1 5 Note - The total CCA deductible would be as follows: 6 7 Class 1 8 Class 8 59 Class 50 50 Class 12 51 Class 10 62 Class 10.1 Total CCA for 2021 64 65 Class 8 - The required calculations are as follows 56 67 Opening UCC Additions 1 1 1 SO Class 10.1 TCCA2071 Class. The required calculations are as follows: 1 1 Opening UCC AS Disposal-Lewer of Proceeds 1 3 1 2 Accll Ads CCA B SO 9 Class RCA Class 10.1 - Recuperare, Terminal Low Half Year's CCA 00