Garred operates a proprietorship that generated $150,000 in income under GAAP.

Included in this amount are:

$9,000 of amortization expense;

$5,000 for bad debt expense;

$112,000 cost of goods sold; and

$10,000 meals and entertainment with clients.

Garred's maximum CCA has been calculated at $20,000 for the year.

How much is Garred's business income for tax purposes?

Answer rating: 100% (QA)

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