Mindy Chen retired in early January 2022 at the age of 65 from a position she had held since 1982, earning only $2,500 salary this year with a $150 pension adjustment ($90,000 salary in prior year and a $3,000 pension adjustment). In addition to her $60,000 annual pension (which she received in full), Mindy received a $48,000 retiring allowance. She also started collecting her OAS and CPP benefits in 2022 in the amounts of $9,500 and $5,000 respectively. Mindy generally preferred to contribute to her TFSA, so her unused RRSP deduction room at the beginning of 2022 was $50,000. She rolled over the maximum possible to the RRSP through the retiring allowance rollover, and contributed an additional $15,000 from her savings. She also contributed the $6,000 maximum to her TFSA. In late 2021, Mindy decided to rent out the basement of the bungalow she purchased last year for $400,000. On January 2, 2022, she purchased $6,000 of appliances for the basement apartment and spent $500 in advertising in the local paper. The basement is 1000 sq ft, and the total house is 2,000 sq ft. She secured a tenant and earned rental income of $12,000 from March 1 December 31. 2022. General home expenses incurred by Mindy for that period were:

Property tax $3,800

Insurance 900

Utilities 3,400

Water 500

Required a) Calculate Mindys net income for tax purposes (original). Use the AccII. Minimize income where options exist, unless unwise to do so. b) Determine if shes subject to the OAS clawback and recalculate net income for tax purposes if necessary. c) Briefly explain why any amounts above were not used in your calculation.