Fleming Distribution is the registered name of a business, carried on by Joaquin Fleming as a sole proprietorship, that distributes a wide variety of health aid products to retailers. Joaquin's spouse, Jordyn Fleming, is an avid golfer with no interest or experience in business matters.

For the taxation year ended December 31, 2021, the accountant calculated a pre-tax accounting income for Fleming Distribution of $273,400. In calculating this amount, Mr. Fleming's accountant relied on generally accepted accounting principles except for the fact that no provision is made at the end of the year for anticipated doubtful debts.

Required

Calculate the minimum business income for Fleming Distribution that will be included in Mr. Fleming's

income tax return for the year ending December 31, 2021.

Other information related to the 2021 taxation year is as follows: 1. In the previous year, a reserve for bad debts was deducted for income tax purposes in the amount of $15,200. For accounting purposes, only the actual 2021 write-offs of $17,800 were deducted. The accountant felt that an appropriate reserve to be deducted for tax purposes at the end of 2021 would be $18,700. 2. Accounting income included a deduction for amortization in the amount of $78,700. The accountant has determined that the maximum CCA for 2021 would be $123,700. 3. The following items were included in the accounting expenses. Cost of advertising in a foreign newspaper that is distributed in Canada $ 3,300 Donations to registered charities 1,280 Cost of appraisal on real estate to be sold 1,460 Costs of landscaping work done on the grounds of Mr. Fleming's principal residence 5,250 Management fee to Mrs. Jordyn Fleming 123,200 4. As the business is not incorporated, no income taxes were deducted in determining net income. | Start with current pre-tax accounting income List item Amount ITA section or rationale Add back: Deduct: Items not adjusted: Business income $