Sam Runs a Proprietorship That Generated $75,000 in Profits in 20X0.Included

Sam runs a proprietorship that generated $75,000 in profits in 20X0.Included in these profits are: a) $10,000 of amortization expense; b) $5,000 bad debt expense; c) $55,000 cost of goods sold; and $8,000 meals and entertainment with clients.Sam's capital cost allowance has been accurately calculated at $8,500 for the year.How much is Sam's business income for tax purposes?

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

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