Sandra Dumont is a lawyer who resides in St. John's, NL. For five years, until June 30, 2022, she had been employed by Calco Ltd., a national restaurant company which is a Canadian controlled private corporation. She had worked at the Corner Brook office of Calco until July 2022 when she moved to St. John's to start a full-time law practice. (Distance from St. John's to Corner Brook is 689km). Sandra had operated her law practice as a sole proprietorship in Corner Brook on a part time basis since 2018. Sandra is 42 years of age and is married to Bob. They have three children. Gracie is 5 and Cal is 11. Samantha is 18 and has just started her first year at university. You have just completed a meeting with Sandra and have gathered the information outlined in the attached exhibits.

EXHIBIT II Business Income- Sandra Dumont Proprietor

Sandra is a busy lady with her law practice. She provides the following information re her income and expenses for 2022.

Revenue	$260,000
Office supplies	11,500
Depreciation on machinery	10,000
Cost of lottery tickets (hoping for the big payout!)	1,000
Other expenses	40,000
Travel	5,500
Meals and entertainment	8,000
Membership Dues to Good Life Fitness	1,000
Total expenses	77,000
Net income	183,000
Accounting gain on the sale of the building	80,000
Net income from the business	$263,000

You have been provided with the following information:

1. Other expenses include $1,200 of donations to registered charities and $2,500 related to obtaining financing under the Small Business Loans Act. Other expenses also include $2,000 of interest paid on this loan that was advanced. It also includes $500 made as a donation to the Liberal Party of Canada.

2. At the end of the previous year (2021), the undepreciated capital cost of certain asset classes was as follows:

Class 1	$80,000
Class 8	32,000
Class 10	50,000

During the current year, the proprietorship sold its land and building in Corner Brook that it used to operate the part time law practice, for $160,000 (land $40,000, building $120,000). The original cost of the property was $100,000 (land $20,000, building $80,000). The building had an accountingnetbook value of $60,000 at the time of sale. Upon the move to St. Johns, Sandra decided that their new home was large enough so she could operate her business out of an office built in the basement.

The business owns several pieces of equipment. During the year, one unit that originally cost $10,000 and had a book value of $6,000 was sold for $8,000. Sandra also purchased $4,000 of equipment to collate briefs to be used in court cases.

The business also purchased a new vehicle at a cost of $42,000 to be used in the business. This was not the same vehicle that Sandra used in the performance of her employment duties.

Sandra also purchased a computer to be used in the business at a cost of $4,000. She also purchased a Simply Accounting Software package for $950.

Finally, in September 2022 Sandra spent $2,000 on a patent on one of her processes that has a legal life of ten years.

As mentioned, Sandra used her basement to operate her law practice once she was in St. Johns. She had a dedicated space which was 750 square feet of her 3,500 square foot house. Expenses related to the entire house during the period of the year the business was operated (after the move to St. Johns) year were follows:

Heat and light	$9,000
Property tax	2,400
Insurance	1,200
Mortgage interest	6,200
General repairs and maintenance	1,800
Repairs to the office portion of the house	1,500

Calculate the 2022 net income for tax purposes, taxable income, and federal & Newfoundland tax for your client Sandra Dumont. also calculate any alternative minimum tax liability. Please clearly identify any assumptions that you make.