Ms. X started a self-employed bakery business in a Toronto warehouse on July 1. The fiscal year end for this sole proprietorship is December 31. Ms. X's business includes the baking and delivery of muffins and bagels to various coffee shops throughout the city.

The Income Statement for the business is provided below: from July 1 to December 31.

Revenue										$ 415,000
Cost of goods sold										$ 230,000
Gross profit										$ 185,000
Expenses:
Accounting amortization (note a)										$ 7,500
Repairs and maintenance										$ 2,800
Annual tennis club dues										$ 3,950
Uncollectible bad debts (note b)										$ 3,750
Political donations										$ 2,200
Charitable donations										$ 8,800
Hotel and travel										$ 4,500
Meals and entertainment (note c)										$ 3,200
Building rent										$ 12,000
Salary to spouse (note d)										$ 68,000
Total expenses										$ 116,700
Net income										$ 68,300

Notes:

Note a: On July 1, Ms. X client purchased a large gas oven, a computerized blender, and a used van for his business.

The van was only used for deliveries. Assume the deductible CCA on this equipment is: $2,700

Note b: Uncollectible bad debts are from customer ABC. ABC's owner has declated bankruptcy and closed the business on September 30.

Note c: meals and entertainment expenses were incurred in the attempt to gain new business with several coffee shops.

Note d: Ms. X's spouse worked full-time for Ms. X overseeing the hiring, orders and delivery of all goods.

Given the income statement above, Ms. X has asked you to make the necessary adjustments and to calculate the company's income from a business for tax purposes (Division business B income)

Make the necessary adjustments and calculate the total business income:

Question 9 options:

	Total business income: $89,650
	Total business income: $90,000
	Total business income: $79,950
	Total business income: $78,500