The following information relates to Perry Somer's financial affairs in 2020:

1.Perry is employed as a salesperson and is remunerated by commissions. He must pay all of his own expenses. During the year, he earned commissions of $28,000. His expenses were as follows:

Automobile (operating costs)

$3,000

Entertainment (meals)

1,000

Convention (related to his employment)

500

Donations

500

Telephone long-distance charges (Personal use 80%)

1,000

The personal-use portion of his automobile expense is 20%.The UCC of his automobile at the end of the previous year was $5,000.

2.He made the following capital transactions:

Gain (loss)

Shares of public corporation A

$10,000

Shares of public corporation B

(18,000)

Shares of Canadian-controlled private corporation C

(6,000)

(a small business corporation)

3.In 2019, Perry acquired the following two residential rental properties.

Property X

Property Y

Land

$10,000

$15,000

Building

70,000

60,000

Maximum capital cost allowance was claimed in 2019. In 2020, the city expropriated property Y for $77,000(land $17,000, building $60,000). Perry was pleased because property Y was vacant for part of the year after a tenant vacated unexpectedly. In 2020, net rental income from both properties (after all expenses but before capital cost allowance) was $1,000.

4.Perry's other income and expenses are as follows:

Income:

Taxable dividends?Canadian public corporations

$2,000

Interest on foreign bonds (net of 15% withholding tax)

1,700

Expenses:

Interest on a loan used to acquire the foreign bonds

1,300

Investment counsel fee

800

5.During the year, Perry made a contribution of 1,000 to a registered pension plan, which was matched by his employer. In addition, he contributed $2,000 to his RRSP.

Required:

Calculate Perry's minimum 2020 net income in accordance with the aggregating formula for determining net income for tax purposes.

A Employment Income: Net Employment Income $ 0 Rental Income: Net rental income $ 0 Other Property Income: Net Property Income $ 0 B Capital Gains: Net taxable capital gains 69 0 C Other Deductions D Net income for Tax purposes 0Allowable Business Investment Loss (ABIL) Allowable capital losses - Corp B Automobile CCA Automobile Operating expenses Commission Income Contribution to RPP Convention Expense CPP enhanced contributions Dividends Donations Entertainment Expense Foreign interest Interest expense Investment counsel fees Net rents before CCA Property X CCA Recapture of CCA RRSP deduction Taxable capital gains - Corp A Taxable capital gains - Property Y Telephone Expense