Sari Ran a Proprietorship That Generated $75,000 in Profits in 2020.Included

question 1

Multiple Choice

Sari ran a proprietorship that generated $75,000 in profits in 2020.Included in these profits were: a) $10,000 - amortization expense; b) $5,000 - reasonable bad debt expense; c) $55,000 - cost of goods sold (closing inventory at market value) ; and $8,000 - meals and entertainment with clients.The business' capital cost allowance has been accurately calculated at $8,500 for the year.How much is Sari's business net income for tax purposes?

• A)$73,500
• B)$75,000
• C)$80,500
• D)$89,000

---

Definitions:

Pilot Device

A manual or automatic device used to initiate control operations, such as signaling or actuating other devices within an electrical system.

Two-wire Control

Two-wire control is a simple control circuit configuration where the device is controlled directly by a switch or relay in one of the two wires supplying power.

Control Contacts

Control contacts are the parts of a relay or switch that make or break the connection in a control circuit, influencing the operation of a system or device.

Hand-off-automatic Circuit

A control circuit configuration that allows a device or system to be operated manually or automatically, based on the position of a selector switch.