Ms. Alpha owns 100% of the shares of Xenon Ltd., which carries on a retailing business and has a December 31 year end. At the beginning of January 2016, Xenon Ltd. loaned Ms. Alpha $200,000 for personal purposes that would not result in an exclusion of the principal amount of the loan, by virtue of subsection 15(2.4). Under the terms of the loan, the principal was to be repaid in five equal annual instalments, commencing December 31, 2016.

REQUIRED

If repayments are made on schedule, how much of the principal amount of the loan must be included in Ms. Alpha’s income for 2016?