Toronto Inc is a Canadian public corporation that sells baby products in Ontario A condensed income statement for Maxwell Inc for its fiscal year of 2021 shows the following Sales Cost of Sales Gross Profit $5,500,000 (3,500,000) 2,000,000 (614,000) 100,000 1,486,000 (424,000) 1,062,000 Goodman Inc Fiscal 2021 Condensed Income Statement Selling, General and Administration Expenses Accounting gain on Sale of Fixed Assets Income Before Income Taxes Income Tax Expense Net Income The information in the following notes relates to the above income statement amounts Depreciation and amortization expense included in the selling, general and administration (SG A) expenses was $250,000 Some of the accounting gain on sale of fixed assets (listed in the income statement) resulted from disposition of Class 8 assets with an original cost of $270,000 and proceeds of $210,000 Class 8 also had $320,000 of eligible property additions during the year The UCC of Class 8 at the beginning of 2021 was $200,000, and CCA has not yet been determined CCA from all other classes is calculated correctly as $150,000 The rest of the accounting gain on sale of fixed assets (listed in the income statement) resulted from disposition of a vacant land, which has an adjusted cost base of $80,000 at the beginning of 2021 and proceeds of $120,000 from the disposition Financing cost of $50,000 was incurred to renegotiate loan terms and was included in the SG A expenses above Political contributions of $3,000 and charitable donations of $7,000 were also included in SG A Meals and entertainment expense of $6,000 was included in SG A, of which $3,000 was spent on a company wide picnic, the only event that was attended by all the employees in 2021 Required Calculate Goodman Inc s minimum Division B income Show all relevant calculations and explain any amounts, if necessary No need to list ITA references Write your answers under the title of Section III on your Answer Booklet, you can use as much space as needed

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Toronto Inc. is a Canadian public corporation that sells baby products in Ontario. A condensed income statement for Maxwell Inc. for its fiscal year of

Toronto Inc. is a Canadian public corporation that sells baby products in Ontario. A condensed income statement for Maxwell Inc. for its fiscal year of 2021 shows the following:

Sales Cost of Sales

Gross Profit

$5,500,000 (3,500,000)

2,000,000

(614,000) 100,000

1,486,000 (424,000) 1,062,000

Goodman Inc. Fiscal 2021 Condensed Income Statement

Selling, General and Administration Expenses Accounting gain on Sale of Fixed Assets

Income Before Income Taxes Income Tax Expense Net Income

The information in the following notes relates to the above income statement amounts:

Depreciation and amortization expense included in the selling, general and administration (SG&A) expenses was $250,000.
Some of the accounting gain on sale of fixed assets (listed in the income statement) resulted from disposition of Class 8 assets with an original cost of $270,000 and proceeds of $210,000. Class 8 also had $320,000 of eligible property additions during the year. The UCC of Class 8 at the beginning of 2021 was $200,000, and CCA has not yet been determined; CCA from all other classes is calculated correctly as $150,000.
The rest of the accounting gain on sale of fixed assets (listed in the income statement) resulted from disposition of a vacant land, which has an adjusted cost base of $80,000 at the beginning of 2021 and proceeds of $120,000 from the disposition.
Financing cost of $50,000 was incurred to renegotiate loan terms and was included in the SG&A expenses above. Political contributions of $3,000 and charitable donations of $7,000 were also included in SG&A.
Meals and entertainment expense of $6,000 was included in SG&A, of which $3,000 was spent on a company-wide picnic, the only event that was attended by all the employees in 2021.

Required:

Calculate Goodman Inc.s minimum Division B income. Show all relevant calculations and explain any amounts, if necessary. No need to list ITA references. Write your answers under the title of Section III on your Answer Booklet, you can use as much space as needed.