Kvetch Ltd. has operated one business with a December 31 year-end since its incorporation in 2018. It has made the following transactions:

 

August 2019     — incurred incorporation costs of $2,500

 

            May 2020         — purchased a licence with an indefinite life for $11,755

 

            June 2021         — purchased goodwill for $80,000

 

            August 2023     — purchased a franchise with an indefinite life for $120,000

 

            October 2025    — sold the licence for $50,000 purchased in May 2020

 

            June 2026         — sold the franchise for $200,000 purchased in August 2023

 

Required:

 

Calculate the effect of the above transactions on income from business, assuming that the maximum write-off is taken by the corporation in all of the years indicated. Assume that the transaction was an arm’s length transaction. Please round off to the nearest dollar when you do your calculations.