Dandelion Inc., a business, uses a taxation year ending December 31. The sole shareholder of the Company is Julian Dandelion. For the current taxation year, Mr. Dandelion's daughter, June, who maintains the books and records of the Company, has calculated 2021 net income of $145,500. In determining net income June begins with accounting income applying ASPE.

Other Information: 1. The following items were included in the expenses claimed for accounting purposes: Advertising on a foreign television station (Directed at Canadian market) 10,200 Advertising circulars (Only one-quarter distributed) 10,000 Appraisal costs on land to be sold 6,200 Amortization expense 95,500 Business meals and entertainment 20,000 Cost of sponsoring local soccer teams 5,500 Damages received resulting from breach of contract 5,200 Golf club membership for Julian and June 18,000 Charitable donations 20,500 Interest paid on building mortgage 20,200 Loss from theft 8,700 Interest paid on late income tax instalments 2,700

2. During the year, Dandelion Inc. spent $10,500 for landscaping the grounds around its office. In accordance with ASPE, this amount was treated as a capital expenditure. As the work was done late in the year, no amortization was claimed for the current year.

3. Maximum CCA has been determined to be $90,800 for the current taxation year.

4. Included in the accounting expenses were $5,000 in fees paid to June's 16 year old son for creating and maintaining the web site of Dandelion Inc. In determining the fee, Julian found that it would cost at least $10,000 to obtain the equivalent services from an outside consultant.

5. Had the contract in which damages were paid been completed, it would have increased business income,

Required: Calculate Dandelion Incs' 2021 business income. Explain the reason for excluding any of the amounts.