Andy Marjan is a highly popular hair stylist who operates a sole proprietorship out of his home. Andy is 59 years old, divorced, and has only one daughter, Katrina, who is 38 years old. Both Andy and his daughter, Katrina, are in good health. Katrina maintains the books and records for her father's business. For the current taxation year, she has calculated 2022 net income of $325,000. In determining net income, she begins with accounting income calculated using ASPE. Katrina has already deducted the business portion of the CPP amount due on selfemployment income from the accounting income figure. Other Information: 1. During the year, Andy spent $6,000 for landscaping the grounds around his home office. In accordance with ASPE, this amount was treated as a capital expenditure. 2. The following items were included in the expenses claimed for accounting purposes: 3. Included in the accounting expenses were $7,500 in fees paid to Andy's 16 -year-old grandson for creating and maintaining the web site for the business. In determining the fee, Andy found that it would cost at least $25,000 to obtain the equivalent services from an outside consultant. 4. Maximum CCA for the business operations has been determined to be $14,820 for the current taxation year. 5. Andy got a great deal on a whole line of beauty products that were being sold off due to the bankruptcy of one of his competitors. The wholesale cost of the inventory would normally be $60,000 and he bought it all for $25,000 on August 1,2022 . While Andy both uses and sells beauty products in his salon, he does not carry this product line. He quickly resold it to a colleague for $40,000. Since the purchaser was a friend, Andy agreed to let her pay $30,000 on the date of the sale, and $5,000 per year for the next two years. The first payment of $30,000 was made on August 11,2022 , and the two subsequent $5,000 payments will be made on December 31,2023 , and December 31,2024 . It cost Andy $1,000 to get the product shipped from the seller to his friend. 6. Andy operates his business from a salon in his home that accounts for 450 square feet of his home and is used solely for business purposes. This is his only place of business. He meets clients here on a regular basis and locks the office when it is not in use. Andy's home has a total living area of 3,000 square feet. He has chosen not to deduct CCA on his home. The home office expenses for 2022 were as follows and were not included in his accounting net income calculation provided above: 7. On April 1,2022, Andy sold a parcel of vacant land for proceeds of $80,000. He had inherited the land from his grandmother in 2017. The original cost of the land was $20,000 and had a market value of $40,000 when it transferred to Andy. Andy has paid a total of $2,900 in property taxes on the land since he inherited it. Legal fees and closing costs for the sale were $3,100. 8. Andy also inherited a rental property from his grandmother in 2017. In 2022, the property generated $57,600 of rental revenue, and incurred $39,412 in operating expenses before the calculation of CCA. The building had a January 2022 UCC balance of $477,199. The building was originally purchased in 2013 for $675,000. The building was the only undepreciated capital asset remaining in association with the rental property. 9. Andy purchased 10,000 units of a mutual fund for $5 each on January 1, 2022. At the end of the year, he received a T5 slip from the broker listing the details of his earnings for 2022 as follows: 10. Andy made four quarterly instalment payments of $25,000 each to the Canada Revenue Agency for 2022. Required: a) Calculate Andy Marjan's 2022 business income. b) Calculate Andy's 2022 property income. c) Calculate Andy's 2022 net income for tax purposes and taxable income. Andy had no Division C deductions for 2022. d) Calculate Andy's 2022 gross and net federal income taxes payable. e) Calculate Andy's 2022 net balance owing (recoverable). Explain the reason for including or excluding all amounts identified in the case. Show your work and round your calculations to the nearest dollar. Format the case so that your summaries are on the first page with each line item referenced to notes when necessary (notes should start on page two). Describe each line item appropriately