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 III Property Income & Capital Dispositions Also, on July 1, 2021 Sandra purchased a four-year guaranteed investment certificate for $30,000 that bears interest at 10%. The interest compounds annually but is not payable until the end of the four-year term. Sandra did not include any amount of interest in her previous years income.

On January 2, 2022, Sandra sold a warehouse property that was located in Corner Brook for $180,000 (land $15,000, building $165,000). The building was used by Calco Limited (Sandras former employer) to store inventory for resale. The company paid Sandra fair value rents for the building. Sandra ended the rental contract on December 31, 2021 so there was no rental income or expenses for 2022. The property was originally purchased at a cost of $140,000 (land $10,000, building $130,000). At the end of 2021 the building had an undepreciated capital cost of $110,000.

Sandra received eligible dividends from Atlantic Oil Limited, in 2022 in the amount of $2,750. She also owned shares of Nala Inc., which was a Canadian controlled private corporation and received non-eligible dividends in 2022 of $1,500.

Sandra also received $850 interest from a term deposit and paid $300 interest to CIBC for interest on a loan for investment. After winning $500,000 on the slot machine at the Bellagio Hotel in Las Vegas during a vacation in May 2021, Sandra decided to invest some of her newly acquired funds in real estateand mortgage some of the purchases as well. In 2022, she purchased the following properties:

Land Building Total 23 Kensington Place $10,000 $ 40,000 $ 50,000 91 Opran Place 12,000 45,000 57,000 39 Reid Street 20,000 80,000 100,000 49 Bugler Avenue 30,000 100,000 130,000

Each of the properties is a single unit family home. Not all of the units were fully rented during 2022 and Sandra determined that her net rental position (before capital cost allowance) for each of the properties was as follows for 2022:

Property 23 Kensington Place 91 Opran Place 39 Reid Street 49 Bugler Avenue Total

Rent revenue $4,000 $5,000 $7,000 $12,000 $28,000 Expenses* (6,000) (3,000) (6,000) (9,000) (24,000) Income (loss) ($2,000) $2,000 $1,000 $ 3,000 $ 4,000

* Property taxes, insurance, interest, maintenance.

In 2022 when determining the classes to apply the available CCA, Sandra decided that CCA should be applied in the following order to the maximum allowed: 1. Kensington Place 2. Opran Place 3. Reid Street 4. Bugler Avenue

Sandra sold the following items during 2022:

Original Cost Proceeds 2017 Vehicle $24,000 $10,000 Antique cabinet 1,000 2,000 A rare coin 100 1,100 Shares in a public corporation 4,000 3,000 Canoe 500 600 Limited edition painting 800 2,500 Sculpture 1,100 900

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.