Morgon Inc. is a proprietorship owned by Helen Morgon. Its taxation year ends on December 31. For the current taxation year, Ms. Morgon's daughter, Summer, who keeps the books for the business, has calculated a Net Income for Morgon Inc. of $193,200. In calculating this figure, Summer used generally accepted accounting principles.

Other Information:

1. During the year, Morgon Inc. spent $12,700 for landscaping the grounds around its office. In accordance with generally accepted accounting principles, this amount was treated as a capital expenditure. As the work was done late in the year, no amortization was deducted for the current year.

2. The following items were included in the accounting expenses:

Amortization expense $69,300

Golf club membership fees for Helen and Summer 15,000

Cost of sponsoring local soccer teams 7,200

Advertising on a foreign television station

(Directed at Canadian market) 9,600

Advertising circulars (Only one-quarter distributed) 12,400

Business meals and entertainment 22,000

Charitable donations 31,900

Loss from theft 16,200

Interest paid on building mortgage 24,200

Interest paid on late income tax instalments 1,400

Appraisal costs on land to be sold 4,200

Damages resulting from breach of contract 3,800

3. Included in the accounting expenses were $14,000 in fees paid to Summer's 16 year old son for creating and maintaining the web site of Morgon Inc. In pricing this work, Helen found that it would cost at least $25,000 to obtain the equivalent services from an outside consultant.

4. Maximum CCA has been determined to be $94,200 for the current taxation year.

5. As the business is unincorporated, no taxes were deducted in calculating Net Income.

Required: Calculate the minimum net business income for Morgon Inc. that will be included in Helen Morgon's tax return for the current taxation year. Indicate why you have not included any of the preceding items in your calculations.