Mark Rogers is an environmental lawyer operating a small, highly specialized incorporated legal practice in Alberta. The current years income statement for Marks professional corporation (determined according to generally accepted accounting principles) is as follows:

Professional Income $500,000

Other Expenses (180,000)

Net Income $ 320,000

Included in Other Expenses are the following amounts:

(a) A $10,000 contribution to the federal Green party (political party) (b) Travel expenses of $25,000 for Mark and his wife to go to Brazil to visit the Amazon rainforest on vacation (c) Accounting depreciation of $5,000. This depreciation was for office furniture and equipment, calculated using the straight-line method. For tax purposes, the undepreciated capital cost (UCC) balance for Class 8 at the beginning of the year was $82,375. There were no additions or dispositions to Class 8 during the current year. (d) Golf course membership dues of $10,000, plus the cost of all meals purchased at the golf course for $5,000. The golf course membership is used to entertain clients of the business. (e) Salary of $80,000 paid to Marks wife for cleaning up the office (note: an average janitors salary is $35,000)

(f) A charitable donation to Save The Rainforests (a registered charity) for $15,000

(g) Office expense of $15,000. Included in this cost is the purchase of a new laptop for $5,000. The remainder of the office expenses are consumable office supplies such as pens, paper, etc.

(h) Interest expense of $10,000. $9,000 of this is interest on a business loan used to pay for expenses of the law practice. The remainder is interest paid to CRA for late filing and payment of the corporations T4 information return.

(i) The corporation paid $5,000 for advertising in a law magazine published and distributed in Alberta.

Calculate net income for tax purposes for Mark Rogers Professional Corporation.

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