Your client, Jon's Auto Parts Ltd., a Canadian-controlled private corporation, has prepared its own financial statements for the year ended December 31, 2019. The financial statements are not necessarily in accordance with generally accepted accounting principles.

Jon's Auto Parts Ltd.
Balance Sheet
December 31, 2019
Assets:
Cash$     75,401
Accounts receivable     131,520
Inventory     526,810
     733,731
Capital assets, net of amortization  1,883,200
Development costs     178,750
Goodwill  1,200,000
$3,995,681
Liabilities:
Accounts payable$   229,090
Long-term debt     866,295
  1,095,385
Shareholders' Equity:
Share capital     110,000
Contributed surplus  1,200,000
Retained earnings  1,590,296
  2,900,296
$3,995,681


Jon's Auto Parts Ltd.
Statement of Income and Retained Earnings
For the Year Ended December 31, 2019
Sales$1,503,850
Cost of sales
Opening inventory$287,120
Material costs    715,690
Wages    215,321
Amortization  165,000
Rent    55,000
Overhead    32,300
Closing inventory (526,810)     943,621
Gross profit     560,229

Expenses
Administrative salaries and benefits              85,320
Advertising       22,551
Amortization of capital assets              20,860
Automotive expenses                     7,390
Bad debts         6,514
Charitable donations                          500
Interest expense
-  on building loan         23,833
     - on equipment loan       15,506
Loss on sale of computer       17,500
Management bonuses              73,654
Meals and entertainment               7,815
Office expense         8,312
Professional fees         8,020
Sales commissions and benefits       37,977
     335,752
Income before income taxes     224,477
Income taxes       51,600
Net income for the year     172,877
Retained earnings, beginning of year  1,417,419
Retained earnings, end of year $1,590,296
The following information was provided by Jon's Auto Parts Ltd.'s accountant who prepared the financial statements:
1.  Accounts receivable — The company provides an allowance for doubtful accounts for accounting purposes, based on historical experience, equal to 4% of gross receivables.

    A/R             Allowance     Net
December 31, 2018$120,000$  4,800$115,200
December 31, 2019  137,000    5,480    131,520

The actual doubtful accounts, based on a review of the aged listing, were $2,200 and $6,300 at December 31, 2018 and 2019, respectively.
2.Inventory — The inventory is valued at cost which is determined on a direct cost basis. One particular line of parts which is included in inventory has a market value of nil but is recorded on the books at $35,000. The write-down has not been recorded since the total cost of inventory is less than the total market value.
3. Capital assets, net of amortization —

    December 31, 2019December 31, 2018
AccumulatedAccumulated
 CostAmortization NBV CostAmortization NBV
Land$ 300,000  $              - $ 300,000$            -     $             - $               -
Building under
construction     800,000           -      800,000            --          -
Manufacturing
equipment  1,525,060   857,000      668,060  1,370,000  692,000 678,000

Computer
equipment       33,000     17,360        15,640       33,000    16,000    17,000
Computer
hardware     110,000     16,500        93,500      70,000    28,000    42,000
Computer
software       12,000       6,000          6,000       12,000      3,000      9,000
$2,780,060 $896,860 $1,883,200$1,485,000$739,000$746,000

The company began the construction of a building to house their manufacturing operations in September 2019. The building has an estimated completion date of May 2020.
The company replaced its computer hardware in 2019. The old equipment was depreciated to a net book value of $42,000 and its disposition resulted in a loss of $17,500. The old computer hardware was included in Class 10 for CCA purposes.
The company purchased a piece of manufacturing equipment during the year for $155,060.  
There were no other additions or deletions of capital assets during the year. The closing UCC's at December 31, 2018 were:
Class 8$  25,000
Class 10    26,000
Class 43  410,000
4. Purchases- During the year the company bought $32,000 worth of new furniture for the office.
5. Goodwill — The company had a valuation completed by an independent valuator early this year. The valuation identified that the company had goodwill of $1,200,000.  The company recorded the goodwill in order to enhance the financial position of the company to potential investors.
6. Accounts payable — Accounts payable at December 31, 2019 included bonuses payable to employees unrelated to the company of $25,000 and bonuses payable to employees related to the company of $35,000. The bonuses were considered reasonable and were paid on June 30, 2020 before the 2019 tax returns were filed.

Required:
Determine the minimum Division B income for tax purposes of Jon's Auto Parts Ltd. for the year ended December 31, 2019.