Jaylen Abbas runs a small proprietorship. You have been provided with the following financial information pertaining to his business: Revenue $150,000 Cost of goods sold* 80,000 Advertising in a local paper 1,000 Advertising in a U.S. newspaper directed at Canadians living in the U.S. 2,000 Meals and entertainment 10,000 Property taxes on a vacant piece of land (which earns no income) adjacent to the business 2,500 Golf course fees for Jaylen 1,500 Cost of one convention held on a cruise ship in the Mediterranean Sea sponsored by a Canadian association. 2,000

(*All closing inventory is valued at market value.)

Required: A) Calculate the net income for tax purposes for Jaylen's proprietorship. B) Explain why any items have been omitted. C) Briefly discuss how your answer in A) would change if Jaylen had valued the inventory at cost