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:

Public Opinion

The distribution of views, beliefs, or sentiments held by the general population regarding issues, policies, or actions.

New Democracy

The term "New Democracy" typically refers to a conceptual political framework, often associated with Mao Zedong's theories in China, aimed at transitioning from feudalism to socialism through a coalition government led by the proletariat but including other classes.

Inegalitarian Countries

Nations characterized by a high level of inequality in terms of income distribution, social rights, and opportunities.

Middle and Working Classes

Social groups categorized by their economic status, occupational types, and levels of income, where the middle class typically includes those with moderate incomes and white-collar jobs, and the working class includes those with lower incomes and blue-collar or manual labor jobs.