Ziggy$$s Inc. is a retailer of highly specialized clothing that opened for business on May $1,2021,$ in a leased store in a strip mall. A condensed income statement for Ziggy$$s Inc. for its year, ended December $31,2023,$ shows the following:

Ziggy$$s Inc.

Condensed Income Statement

For the Year Ended December $31,2023$

unaudited

$(000$s$)$

Sales $ $1,932$

Cost of sales $(1,439)$

Gross profit $493$

General and administrative expense $(279)$

Other $(54)$

Income before income taxes $160$

Income tax expense$(13)$

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 fixture at the back of the store. The tagged prices of the mark$-$downs are less than their costs, at December $31,2023$ 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 $0\mathrm{.}1\%$ 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:

Contributions to a registered pension plan made monthly for the two key employees, expensed by the corporation$$s accountant, were as follows:

Registered Pension Plan Employment compensation

President and CEO $$21,000$ $$190,000$

Store manager $$12,800130,000$

The pension plan is a defined contribution $($money$-$purchase$)$ plan. The contributions above were matched by equal contributions made by the employee.

The company paid the following amounts to Sun Insurance Limited during the year:

Group term life insurance for the four full$-$time employees $$2,200$

$$200,000$ term life insurance policy on the president, which was included in the $$Insurance$$ expense account $$900$

$=$ $$3,100$

Ziggy$$s Inc. is the beneficiary of the insurance policy on the president. The term life insurance policy on the president was assigned to the bank as collateral for a $$500,000$ loan from January $1$ through August $30,2023.$ The loan was repaid on September $1,2023$ in favour of an operating line of credit.

The following selected information was taken from the $$Promotions$$ account:

Charitable donation to the local United Way $ $4,500$

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 $$ full costume occasions $($staff and $$significant others$$ make up about one$-$third of the attendees$)12,000$

Account total $ $25,600$

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 on the purchase of capital assets 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$

In $2022,$ the company incurred fees of $$1,000$ to issue shares to the president and CEO.

Other expenses deducted in the financial accounting computation of income include:

Depreciation and amortization $$47,000$

Interest on the loan and operating line of credit $7,500$

Interest on insufficient income tax instalments $400$

Purchase of additional store fixtures bought at a going$-$out$-$of$-$business sale; expensed due to their small dollar amount $1,500$

Damages under a breach of contract suit initiated by a supplier $1,700$

Total $=$ $$58,100$

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 Ziggy$$s Inc. is entitled to a $$50,000$ capital cost allowance amount claim in $2023.$

Required:

Based on the foregoing information, compute the income from business for tax purposes for Ziggy$$s Inc. for its $2023$ fiscal year. Show all calculations whether or not they seem relevant to the final answer.

Comment briefly on why any items were omitted from the calculation.