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Alice Smith Has Provided You with the Following Information Pertaining

question 7

Essay

Alice Smith has provided you with the following information pertaining to her 20x0 taxes:
- The financial statements for Alice's dental practice report a net income of $110,000.
- Amortization of $15,000 is reported in the expenses.
- Capital cost allowance has been accurately calculated at $12,500 and has not been accounted for in the financial statements.
Alice conducted scientific research and experimental development (SR&ED) in 20x0. $40,000 of her expenditures are qualified SR&ED activities. These costs are currently reported as capital items on the balance sheet.
- Alice raises sheep on her land at her home in the country. She has a farming loss of $9,000 in 20x0.
Required:
Calculate Alice's minimum net income for tax purposes for 20x0.

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Definitions:

Human Performance

The study and application of psychological principles and techniques to improve the effectiveness, efficiency, and well-being of individuals in various settings.

Alderfer's ERG Theory

A motivation theory that categorizes human needs into three groups: Existence, Relatedness, and Growth, suggesting that individuals are motivated by the fulfillment of these needs in varying degrees.

Distributive Justice

Concerns the fair allocation of resources and benefits among members of a society or group.

Fairly Allocated

The perception or condition of resources, duties, or rewards being distributed in a just and equitable manner among all parties.

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