Ziggys Inc. is a retailer of highly specialized clothing that opened for business on May 1, 2019, in a leased store in a strip mall. A condensed income statement for Ziggys Inc. for its year, ended December 31, 2021, shows the following:

Ziggys Inc.
Condensed Income Statement
For the Year Ended December 31, 2021
unaudited
(000s)
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 rackhas 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, 2021 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:

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

	Registered Pension Plan		Employment compensation
President and CEO	$21,000		$190,000
Store manager	$12,800		130,000

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

Ziggys 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, 2021. The loan was repaid on September 1, 2021 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 companys 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 2020, 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 stores 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 Ziggys Inc. is entitled to a $50,000 capital cost allowance amount claim in 2021.

Required:

Based on the foregoing information, compute the income from business for tax purposes for Ziggys Inc. for its 2021 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.