For the year ended August 31, 2018, Zefer Ltd., a Canadian-controlled private corporation, reported a net income before income taxes of $600,900. The statement of income is summarized as follows: $505,800 Income from operations Other income Interest Net gain on sale of assets 63,036 88400 $600,900 Skipped Net Income per Financial Statements The net gain on the sale of assets consists of the following amounts: Gain on sale of franchise-$35,000 The franchise to operate a retail store was acquired seven years previously at a cost of $135,000. It was sold in 2018 for $170,000. The sale proceeds included a cash down payment of $20,000, with the balance payable in six annual instalments of $25,000 plus interest beginning in 2019. The franchise, which qualified as a class 14 asset, had an undepreciated capital cost of $122,400 at the time of the sale and was the only asset in its class. Gain on sale of warehouse property-$80,000 n July 2018, a warehouse property was sold for cash proceeds of $250,000 (and $180,000, building $250,000). The property had an original cost of $370,000 (land $60,000, building $310,000). The building, which was the only asset in class 1, had an undepreciated capital cost of $290,000. After the sale of the warehouse, temporary premises were leased until a new, larger warehouse was constructed. New land was purchased in January 2019 for $200,000. Construction of the new warehouse would be completed by July 2019. Loss on sale of shares of subsidiary-$26,600 Zefer sold shares of a subsidiary corporation for cash proceeds of $599,000.The shares were acquired five years ago for $625,600. Legal fees of $2,600 were paid to draw up the sale agreement and were charged to the legal expense account. For the year ended August 31, 2018, Zefer Ltd., a Canadian-controlled private corporation, reported a net income before income taxes of $600,900. The statement of income is summarized as follows: $505,800 Income from operations Other income Interest Net gain on sale of assets 63,036 88400 $600,900 Skipped Net Income per Financial Statements The net gain on the sale of assets consists of the following amounts: Gain on sale of franchise-$35,000 The franchise to operate a retail store was acquired seven years previously at a cost of $135,000. It was sold in 2018 for $170,000. The sale proceeds included a cash down payment of $20,000, with the balance payable in six annual instalments of $25,000 plus interest beginning in 2019. The franchise, which qualified as a class 14 asset, had an undepreciated capital cost of $122,400 at the time of the sale and was the only asset in its class. Gain on sale of warehouse property-$80,000 n July 2018, a warehouse property was sold for cash proceeds of $250,000 (and $180,000, building $250,000). The property had an original cost of $370,000 (land $60,000, building $310,000). The building, which was the only asset in class 1, had an undepreciated capital cost of $290,000. After the sale of the warehouse, temporary premises were leased until a new, larger warehouse was constructed. New land was purchased in January 2019 for $200,000. Construction of the new warehouse would be completed by July 2019. Loss on sale of shares of subsidiary-$26,600 Zefer sold shares of a subsidiary corporation for cash proceeds of $599,000.The shares were acquired five years ago for $625,600. Legal fees of $2,600 were paid to draw up the sale agreement and were charged to the legal expense account