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Mariam Gonzalez is a one-quarter partner in Seasons, a restaurant that specializes in vegan cuisine. The partnership year end is December 31. The financial results for 2020 are provided below:

Additional information:

1) The Salaries noted above were not paid to the partners.

2) The amortization expense relates to the restaurants equipment. At the end of the previous year, the undepreciated capital cost of the class 8 (20%) equipment was $20,000, and of the class 53 (50%) equipment was $10,000.

3) During the year, Mariam received cash distributions of $15,000 from the partnership.

4) The donations paid by the partnership were designated one-quarter to each partner.

5) One of the other partners recently offered to buy Mariams partnership interest for $500,000. Mariam refused the offer, as she plans to continue working in the restaurant. The partnerships accountant informed Mariam that the adjusted cost base of her partnership interest was $60,000 on January 1, 2020.

6) In addition to her income from the partnership, Mariam has a full-time job and earns a salary of $220,000.

Required:

a) Calculate Mariams net income for tax purposes for the 2020 taxation year.

b) If Mariam had sold her partnership interest on January 1, 2021 for $500,000, how would her net income for tax purposes have changed?

Sales Cost of sales Gross profit $700,000 550,000150,000 Expenses: Salaries Rent Maintenance Amortization Donations Supplies Other Other income: Capital gain on sale of previous franchise Dividends (eligible) from Canadian corporation Net income \begin{tabular}{rr} $140,000 & \\ 60,000 & \\ 6,000 & \\ 10,000 & \\ 2,000 & \\ 9,000 & \\ 17,000 & \\ \hline & 244,000 \\ \hline \end{tabular}

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