Samson Enterprises Ltd. achieved a profit in 20X1 of $120,000. The income statement is summarized below.

Sales

$1,300,000

Cost of sales

780,000

Gross profit

520,000

Administrative and selling expenses

451,000

69,000

Other income (expenses)

51,000

Net income before tax

$ 120,000

Certain details of the summarized income statement are provided below.

1. Administrative and selling expenses include the following:

(a) Donations to registered charities

$3,000

(b) Amortization/depreciation of tangible assets

12,000

Note 1:At the end of the previous year, the undepreciated capital cost of certain asset classes was as follows:

Class 1

$80,000

Class 8

32,000

Class 10

50,000

Class 14.1

48,750

Note 2: During the current year, the company sold its land and building for $150,000 (land $40,000, building $110,000) and moved into leased premises. The original cost of the property was $130,000 (land $30,000, building $100,000).The building had an accounting book value of $70,000 at the time of sale.

Note 3: The company owns several pieces of equipment. During the year, one unit that originally cost $10,000 and had a book value of $6,000 was sold for $8,000.

(c) Legal fees:

Settling a dispute relating to the purchase of defective

merchandise for sale

4,000

Reorganizing the corporation's share capital

8,000

(d) Amortization

9,000

Note: The current year's amortization expense applies to a number of intangible assets.

During the previous year (20X0), the company took over a competitor and purchased goodwill for $40,000 and a franchise (unlimited life) for $10,000.

During the current year, the franchise was sold for $8,000 when its book value for accounting purposes was $9,000. In addition, the company purchased an existing patent from a competitor for $20,000.The patent with a remaining legal life of 10 years was purchased on the first day of the current year.

2. Other income (expenses) includes the following:

Gain on sale of land

$10,000

Gain on sale of building

40,000

Gain on sale of equipment

2,000

Loss on sale of franchise

(1,000)

$51,000

Required:

Determine the net income for tax purposes of Samson Enterprises for the 20X1 taxation year. Assume 20X1 is 2019.