Larchmont Supplies is a business carried on by Javier Fonseca as a sole proprietorship. For the fiscal period ending December $31,2023,$ Javier has determined that the business income for accounting purposes is $$90,000,$ which is calculated using ASPE.

Clew the additional intormation.

Required

Calculate the minimum $2023$ business income for Javier Fonseca. Indicate why you have not included any of the preceding items in your calculations.

Additional Information

determining accounting business income, Javier deducted $$33,500$ in amortization expense and would be eligible to claim maximum CCA of $$43,000.2.$ Accounting expenses included a reserve for doubtful debts of $$4,000$ and a reserve for inventory obsolescence of $$8,900.$ The method for determining $,$ doubtful debts for accounting purposes is the same as that used for income tax purposes.

During the year, Larchmont Supplies spent $$5,500$ for landscaping the grounds around its Winnipeg office. The amount was capitalized for accounting purposes. Since the expenditure was made late in the year, no amortization was deducted for the current year.

Accounting expenses included $$12,200$ in business meals as well as $$2,000$ in charitable donations.

The business spent $$3,400$ for advertisements on a U$.$S$.$ radio station. As the station is on the border with Manitoba, the audience for this station is largely Canadian residents.

Javier spent $$6,500$ for advertising circulars, charging the full amount to expense. As of December $31,2023,$ one$-$half of the circulars were still on hand. $7.$ One of Jerad's employees stole cash in the amount of $$1,000.$ As the individual has left town, this amount is unlikely to be recovered.

The additional items below were included in the accounting expenses.

Cost of sponsoring local hockey team

$

$2,200$

Interest on building mortgage

$5,800$

Appraisal costs on land to be sold

$2,600$

Damages resulting from breach of contract.

$500$

Had the contract been fulfilled, the amounts would have been business income.

$9.$ Also included in the accounting expenses were $$1,900$ in fees paid to Jerad's $16-$year$-$old son for creating and maintaining the website of Larchmont Supplies. In determining the amount to pay, Javier found that it would have cost at least $$3\mathrm{.}400$ to obtain the equivalent services from an external consultant.