During the period March 1, 2017, through December 31, 2017, Mr. Alex Andrews mail ordes Question 2 (27 marks) Mr. Alex Andrews wanted to start a hom-based business that would specialize in selling posters. The business would be operated from his principal residence. He set aside 10% ofthe total floor space in the residence for the poster operations. sales totaled $500,000. Costs associated with these sales included the following: $200,000 45,000 8,000 9,500 3,800 Cost Of Merchandise Purchased dMerchandise at Decamber 31, 2017 Mr. Alex Andrews principal residence, costing $850,000 in total, was acquired on January, 2017. It is estimated that $250,000 of this total value can be attributed to the land value. Padkaging Mataias Maing Costs Office Suppies TeephoneCharges Mr. Alex Andrews ineurred the following 2017 costs relating to the principal residence: Utilities Fa TheHe (Heat, Light, And Water) MatggeInterest Paid Hause Insaranoe Propaty Taxes S3,000 6,000 5,300 8,500 5,600 $23,400 Of Brochures 7,000 Total Costs s & Maintenance Fcr The Home Total House Costs A. CanMr. Alex Andrews deduet work space in the home costs? Briefly explain your decision. B. Caleulate Mr. Alex Andrews' 2017 minimum net business income or loss that he will report on his 2017 income tax return The business commenced operations on March 01, 2017. On that date, Mr. Alex Andrews purchased the following assets to be used in his new business: C. Briefly discuss any issues that should be discussed with Mr. Alex Andrws regarding the work space in his home and business costs Office Furniture&Saage Shelving Computer Business Scftware Total Parchases $40,000 4.000 2.000 $46,000 In addition, Mr. Alex Andrews had a separate telaphone line installed for dealingwith the mail order business