please help
Pedro's Inc. is a retailer of highly specialized clothing that opened for business on May 1, 2017, in a leased store in a strip mall in northern Ontario. A condensed income statement for Pedro's Inc. for its year, ended December 31, 2020, shows the following: Pedro's Inc. Condensed Income Statement For the Year Ended December 31, 2020 unaudited (0005) Sales $ 1,932 Cost of sales 1 1,439) Gross prot 493 General and administrative expense (279) Other (54) Income before income taxes 160 Income tax expense 1 13) Net income $ 147 An analysis of the cost of sales account revealed that the inventory is valued at average cost within each of the different styles carried. Since the owner is still learning what has appeal, a \"mark-down rack\" has become a common xture at the back of the store. The tagged prices of the mark-downs are less than their costs, at December 31, 2020 by $700. This difference has not been recorded in the financial statements. Cost of goods sold includes a charge of $1,800 to set up an allowance for returns (at 0.1% of sales) that are not subsequently saleable at full retail price. No such allowance was recorded last year-end because the company only discovered that the allowance was necessary this year. General and administrative expenses include the following selected information was taken from the \"Promotions\" account: Charitable donation to the local United Way 13 4,500 Political contributions to the local politicians 2,500 Hockey tickets given to suppliers as Christmas gifts 2,800 Meals and entertainment incurred by the owner while negotiating with suppliers 2,000 Golf green fees incurred while entertaining suppliers 1,800 Two customer parties and one staff party full costume occasions (staff and 12 000 \"signicant others\" make up about one-third of the attendees) ' Account total s 25,600 The company's \"Professional expense\" account included the following legal and accounting fees: Accounting fees for yearend work and monthly bookkeeping $15,000 Legal fees incurred in changes to incorporation documentation during the year 2,000 Legal and accounting fees incurred in connection with negotiations for a line of credit at the bank 4,000 Account total 21 000 Other expenses deducted in the nancial accounting computation of income include: Depreciation and amortization $47,000 Interest on the loan and operating line of credit 7,500 Interest on insufcient income tax instalments 400 Purchase of additional store xtures 1,500 Added to the capital asset account for leasehold improvements this year is $15,000. This amount represents the store's share of new landscaping of the strip mall premises that was undertaken after road work was done in front of the mall. You have correctly determined that Pedro's Inc. is entitled to a $50,000 capital cost allowance amount claim in 2020. Required: Based on the foregoing information, compute the income from business for tax purposes for Pedro's Inc. for its 2020 scal year. Show all calculations whether or not they seem relevant to the nal answer. Comment briey on why any items were omitted from the calculation
