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Margaret Lykaios is the president and major shareholder of Measureup Ltd$.,$ a Canadian$-$controlled private corporation that operates a construction business in Regina, Saskatchewan. Measureup earns only business income which is all subject to the small business deduction.

In $2023,$ she had a number of financial transactions. She has asked you to help her prepare her $2023$ tax return and provide advice on other tax matters. The following additional financial information is provided for $2023$:

Margaret$$s gross salary was $$108,900,$ from which Measureup deducted the following amounts.

Income tax $ $30,000$

CPP and EI premiums $4,756$

Private health insurance premiums $600$

Group sickness and accident insurance premiums $400$

In addition to her salary, Measureup paid $$2,000$ to a deferred profit$-$sharing plan, $$600$ of private health insurance premiums, and $$400$ of group sickness and accident insurance premiums.

Margaret is required to use her own automobile for company business. For this, Measureup pays her an annual allowance of $$4,400.$ She purchased a new automobile for $$61,100$ plus HST $(13\%),$ and received $$18,000$ as a trade on her old car. At the end of the previous year, the old car had an undepreciated capital cost balance of $$17,000($class $10\mathrm{.}1).$ Of the $20,000$ km driven in $2023,14,000$ km were for employment purposes. Margaret incurred automobile operating costs of $$6,300.$

For three months during the $2023,$ Margaret was sick and could not attend work. She received $$14,000$ from the company$$s group sickness and accident insurance plan. Since the plan$$s inception, Margaret had paid premiums totalling $$2,000.$

Margaret purchased a warehouse property and leased it to Measureup to store construction equipment. The property cost $$296,200($land $-30,000,$ building $-266,200).$ The building was originally constructed after March $18,2007.$ The price for the land includes $$2,400$ of permanent landscaping completed just after acquisition. The $2023$ rental income is summarized in the following chart.

Rent received $ $23,200$

Expenses:

Insurance $ $(1,200)$

Property taxes $ $(4,000)$

Interest $(10,000)$

Repairs:

General maintenance $(800)$

Storage shed addition $ $(3,600)$ $ $(19,000)$

Income $ $3,600$

Margaret is a $35\%$ partner in a computer software business but is not active in its management. The partnership financial statement shows a profit of $$40,000$ for the year ended December $31,2023.$ The profit consists of $$32,000$ from software sales and $$8,000$ from interest earned.

On July $1,2022,$ Margaret purchased a three$-$year guaranteed investment certificate for $$20,000$ with interest at $8\%.$ The interest compounds annually but is not payable until July $1,2025.$

Margaret received $($made$)$ the following additional receipts $($disbursements$).$

Receipts:

Dividends $($Eligible$)$ from Canadian public corporations $ $2,400$

Dividends $($Non$-$eligible$)$ from Measureup $3,600$

Dividends from foreign corporations $($net of $10\%$ foreign withholding tax$)2,700$

Winnings from a provincial lottery $12,000$

Disbursements:

Dental expenses for children $3,500$

Donation to a charity $2,000$

Safety deposit box $100$

Life insurance premium used as collateral for personal bank loan $500$

Investment counsel fees $1,200$

Required:

Determine Margaret$$s net income for tax purposes in accordance with the aggregating formula of Section $3$ of the Income Tax Act for $2023.$ Assume other deductions total $$8,000.$

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