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A company's net income for financial statement purposes is $300,000. Included in this amount are the following: $40,000 gain from the sale of Class 8 equipment for $60,000 that had an original cost of $33,000, and a net book value of $20,000; amortization expense of $25,000; and client entertainment expenses of $13,000. The UCC of Class 8 at the beginning of the year was $8,000. The capital cost allowance (CCA) computed on all other depreciable assets was $7,500. What is the net income for tax purposes?
a. $337,500 b. $322,500 c. $304,000 d. $297,500
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