Waves Ltd$.$ is a Canadian$-$controlled private corporation, operating a small gift store in Kelowna. The company has a December $31$st year$-$end. Waves' financial statements reported net income before taxes of $$220,000$ in Year $1.$

Financial information relating to Year $1$ is as follows:

Land adjacent to the gift shop was purchased with a $$75,000$ bank loan during the year and is used as an outdoor sales area. Interest expense on the loan for the year was $$9,600,$ and the fee to obtain the loan was $$1,000.$ Both the interest and the loan fees wThe company hired a contractor to landscape the land. The $$5,000$ bill for the landscaping was paid in full during the year and capitalized on Waves' Balance Sheet.

During the year, a new display case worth $$2,000$ was purchased and expensed on the books.

Amortization expense of $$21,000$ was deducted during the year. Total CCA $($following any adjustments$)$ for the year was $$16,000$ and is not reflected in the financial statements.

The following were also expensed during the year:

On December $30$th$,$ Waves' president announced a bonus to be paid to the company's key employee in the amount of $$5,000,$ which was expensed on the books that day. The employee will receive the bonus in Year $2$ in equal payments of $$2,500,$ to be issued on January $30$th and July $30$th$.$

Required:

Determine Waves Ltd$.\text{'}$s net income for tax purposes for Year $1.$ere expensed by Waves in Year $1.$