Deborah's Party Planners Limited provides start-to-finish party planning services for all occasions. A summarized set of financial statements for the taxation year ended December 31, 2017 are set out below:

Deborah's Party Planners Limited

STATEMENT OF INCOME

For the year ended December 31, 2017

Revenues......................................................................................................................

$561,000

Expenses: General and administrative.....................................

$411,930

Amortization on fixed assets......................................................

28,170

440,100

120,900

Gain on disposal of fixed assets (see details below)..............................................

79,100

Net income before income taxes..............................................................................

200,000

Provision for income taxes........................................................................................

43,240

Net income after income taxes..................................................................................

$156,760

Additional information related to 2017 is provided below.

The opening UCC balances as at January 1, 2017 were as follows:

Class 1.....................................................................................

$30,000

Class 6.....................................................................................

2,100

Class 8.....................................................................................

2,000

Class 10..................................................................................

11,000

Class 12..................................................................................

Nil

During 2017, Deborah's Party Planners Limited purchased the following depreciable assets:

Office furniture.....................................................................................................................

$15,000

Delivery van.........................................................................................................................

30,000

Computer equipment & related systems software (October2017)............................

10,000

Computer word processing software...............................................................................

6,000

Cutlery and dishes................................................................................................................

21,000

Kitchen utensils (less than $200 each).............................................................................

1,000

Photocopy machine............................................................................................................

2,600

In April2017, Deborah's Party Planners Limited sold their owned business premises (consisting of land and a Class1 building) and moved to a more suitable location, which is currently being rented. They received proceeds of $20,000 for the land (original cost of $5,000). The Class6 asset mentioned above is the fence that was erected around these former business premises. On the sale of these premises, no proceeds were allocated to the fence. This was the only asset in Class6.

The details of the sale of the former Class1 building, as well as the other depreciable assets sold during 2017, are set out below:

Proceeds

Original Cost

Net book value

Cl 1 building

125,000

45,000

40,000

Chairs and tables (Class 8)

6,000

8,000

5,120

Delivery van

4,500

18,000

6,175

Office equipment

5,000

15,000

4,915

Table linens

3,000

25,000

8,190

During 2017, Deborah's Party Planner Limited purchased the client list from a competitor who was going out of business. They paid $12,000 for this list which had an indefinite life.

Required:

Calculate the corporation's minimum income from business for the year ended December 31, 2017. Assume all expenses are reasonable in the circumstances. Support your treatment of each item listed above with a reason or a calculation.