DISCLAIMER: This is a question regarding Canadian Income Tax regulations. This question is presented in it's entirety with no information omitted by the uploader.

Ms. X started a self-employed bakery business in a Toronto warehouse on July 1. The fiscal year end for this sole proprietorship is December 31. Ms. X's business includes the baking and delivery of muffins and bagels to various coffee shops throughout the city.

The Income Statement for the business is provided below: from July 1 to December 31.

Revenue $550,000

Cost of goods sold $333,000

Gross profit $217,000

Expenses:

Accounting amortization (note a) $8,800

Repairs and maintenance $3,100

Annual tennis club dues $4,750

Uncollectible bad debts (note b)$2,900

Political donations $1,570

Charitable donations $6,500

Hotel and travel $3,300

Meals and entertainment (note c)$2,400

Building rent $14,000

Salary to spouse (note d) $44,000

Total expenses $91,320

Net income $125,680

Notes:

Note a: On July 1, Ms. X client purchased a large gas oven, a computerized blender, and a used van for his business.

The van was only used for deliveries. Assume the deductible CCA on this equipment is: $4,400.

Note b: Uncollectible bad debts are from customer ABC. ABC's owner has declared bankruptcy and closed the business on September 30.

Note c: meals and entertainment expenses were incurred in the attempt to gain new business with several coffee shops.

Note d: Ms. X's spouse worked full-time for Ms. X overseeing the hiring, orders and delivery of all goods.

Given the income statement above, Ms. X has asked you to make the necessary adjustments and to calculate the company's income from a business for tax purposes (Division business B income)

Make the necessary adjustments and calculate the total business income:

Question 9 options:

Total business income: $133,730

Total business income: $144,100

Total business income: $134,050

Total business income: $144,950

Please provide an explanation of how the correct answer is acquired, Thank you!