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For the year ended August 31, 201B, Zefer Ltd., a Canadian-controlled private corporation, reported a net Income before lnoome taxes of $600,900. The statement of

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For the year ended August 31, 201B, Zefer Ltd., a Canadian-controlled private corporation, reported a net Income before lnoome taxes of $600,900. The statement of Income is summarized as follows: Income from operations $505,800 Other Income: Interest 5,700 Net gain on sale of assets 88 400 Net lnoome per Flnancial Statements $600,900 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 oost of $135,000. It was sold In 2019 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 undepreclated 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 In July 2013, a warehouse property was sold for cash proceeds of $250,000 {land $190,000, 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 undepreclated capital cost of $290,000. After the sale of the warehouse, temporary premises were leased until a new, larger warehouse was oonstructed. New land was purchased in January 2019 for $200,000. Construction of the new warehouse would be completed byJuly 2019. Loss on sale of shares of \"batman$20,600 Zefer sold shares of a subsidiary corporation for cash proceeds of $599,000.The shares were acquired five years ago for $625,000. Legal fees of $2,600 were paid to draw up the sale agreement and were charged to the legal expense aocount. Required Calculate Zefer's net Income for tax purposes for the 2018 taxation year Segment A Income Segment A sub total Segment B Capital Gains and Losses Segment B Sub total Net Income for tax purposes

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