London Supplies is a business carried on by John Forthwell as a sole proprietorship. For the fiscal period ending December $31,2023,$ John has determined that the business income for decounting purposes is $$87,000$ which is calculated used ASPE.London Supplies is a business carried on by John Forthwell as a sole proprietorship. For the

fiscal period ending December $31,2023,$ John has determined that the business income for

accounting purposes is $$87,000$ which is calculated used ASPE.

Other Information:

In determining accounting business income, John deducted $$33,200$ in amortization

expense and would be eligible to claim maximum CCA of $$43,500.$

Accounting expenses included a reserve for doubtful debts of $$4,500$ and a reserve for

inventory obsolescence of $$8,500.$ The method for determining doubtful debts for

accounting purposes is the same as that used for income tax purposes.

During the year, London Supplies spent $$5,300$ for landscaping the grounds around its

Winnipeg office. The amount was capitalized for accounting purposes. Since the

expenditure was made late in the year no amortization was deducted for the current

year.

Accounting expenses included $$12,000$ in business meals, as well as $$2,300$ in charitable

donations.

The business spent $$3,500$ for advertisements on a U$.$S$.$ radio station. As the station is on

the border with Manitoba, the qudience for this station is largely Canadian residents.

John spent $$6,200$ for advertising circulars, charging the full amount to expense. At

December $31,2023,$ one$-$half of the circulars were still on hand.

One of John's employees stole cash in the amount of $$1,100.$ As the individual has left

town, this amount is unlikely to be recovered.

The following additional items were included in the accounting expenses:

Cost of sponsoring local hockey team

Interest on building mortgage

Appraisal costs on land to be sold

Damages resulting from breach of contract. Had

the contract been fulfilled the amounts would

have been business income.

$$2,100$

$6,300$

$2,100$

$1,400$

Also included in the accounting expenses were $$2,000$ in fees paid to John's $16$ year

old son for creating and maintaining the website of London Supplies. In determining

the amount to pay, John found that it would have cost at least $$3,000$ to obtain the

equivalent services from an extemal consultant.

Required: Calculate the minimum $2023$ business income for John Forthwell.

Other Information:

$1.$ In determining accounting business income, John deducted $$33,200$ in amorization expense and would be eligible to claim maximum CCA of $$43,500.$

$2.$ Accounting expenses included a reserve for doubtful debts of $$4,500$ and a reserve for inventory obsolescence of $$8,500.$ The method for determining doubtful debts for accounting purposes is the same as that used for income tax purposes.

$3.$ During the year, London Supplies spent $$5,300$ for landscaping the grounds around ils Winnipeg office. The amount was capitalized for accounting purposes. Since the expenditure was made late in the year no amortization was deducted for the current year.

$4.$ Accounting expenses included $$12,000$ in business meals, as well as $$2,500$ in charitable donations.

$5.$ The business spent $$3,500$ for advertisements on a U$.$S$.$ radio station. As the station is on the border with Manitoba, the audience for this station is largely Canadian residents:

$6.$ John spent $$6,200$ for advertising circulars, charging the full amount to expense. Al December $31,2025,$ one$-$half of the circulars were still on hand.

$7.$ One of John's employees stole cash in the amount of $$1,100.$ As the individual has left town, this amount is unlikely to be recovered.

$8.$ The following additional items were included in the accounting expenses:

Cost ol sponsoring local hockey team $ $2,100$

Interest on buiding mortgage: $6,300$

Appraisal costs on land to be sold $2\mathrm{.}100$

Damages resulting from breach of contract. Had $1,400$

the conroct been Dtilled the amounts would

nave been business income.

$9.$ Also included in the accounting expenses were $$2,000$ in fees paid to John's $16$ year old son for creating and maintaining the website of London supplies, in determining the amount to pay, John found that it would have cost at least $$3,000$ to obtain the

couiveient services liom on extemal consutont

Required: Calculate the minimum $2023$ business income for John Forthwell.