Ava Miller has just completed the second year of operating her veterinary clinic. You have been retained by Ava for tax assistance and advice. At a recent meeting, you gathered information on her practice, which is presented below.

For the year ended December $31,2023,$ the clinic showed a profit of $$149,700,$ as follows:

Professional service $ $388,400$

Gross profit from surgical instrument sales $33,900$

$ $422,300$

Administration and other expenses $(276,200)$

$146,100$

Interest income $3,600$

Net income $ $149,700$

Included in the above is depreciation$/$amortization expense of $$27,800$ on fixed assets and amortization of development costs of $$3,600$ related to the metal alloy research. Additional information for $2023$ is outlined below.

On February $28,$ Ava purchased a competitor$$s business and merged it with her own. The following assets were acquired:

Truck $ $21,800$

Equipment $60,500$

During the year, Ava designed and patented a new surgical instrument. On July $1,$ a legal fee of $$4,800$ was incurred in applying to the federal government for the patent registration $($life of $20$ years$)$; this amount is included in administration expenses. In October, $$18,200$ was spent on consultants to research metal alloys, and this cost is being amortized over five years as development costs in the financial statement.

Some of the items included under administrative and other expenses are as follows:

Group life insurance for office staff $ $1,300$

Christmas gifts to staff $($under $$200$ each$)1,700$

Dues to golf club $($for employee$)1,400$

Meals and drinks for clients $400$

Books $(15-$volume set on veterinary medicine$)3,600$

Interest on car loan $($six months$)2,500$

Finder$$s fee for a loan to finance equipment $1,200$

Vehicle costs deducted on the income statement include operating costs of $$2,900$ for the automobile $($including $$400$ for car parking$).$ The automobile was driven $24,000$ kilometres. Of this, $12,000$ kilometres were for customer travel, $2,000$ kilometres were for travel between her home and the clinic, and $10,000$ kilometres were for personal travel.

Ava expects that a number of the new manufactured surgical instruments will be returned for modification, which she will do at no extra cost to the customer. The income statement includes a $$2,400$ deduction based on her estimate of the returns. As of December $31,$ $$1,000$ of costs were incurred for returned items.

Ava moved from rented premises to new rented premises on February $28,$ with $20$ months remaining on the old lease. The landlord accepted a payment of $$9,700$ in exchange for cancelling the lease. The accounting records have amortized this cost over the remainder of the lease term and accordingly have deducted $$4,850($$$9,700\backslash$times $10$ months$/20$ months$)$ as rent expense.

Capital cost allowance $($CCA$)$ for tax purposes has been correctly calculated as $$18,200.$

Required:

Determine Ava$$s business income for tax purposes for $2023$ taxation year.