Jennifer Black and Pete White carry on a security service business through a partnership. Jennifer and Pete are both active in the business and share profits equally. In the current year they each received a salary of $40,000 from the partnership.

Black & White Partnership
Income Statement
For the year ended December 31, 20X8
Income:
Security service fees………………………….$200,000
Gain on sale of public company shares…………… 12,000
Eligible dividends……………………………. 10,000
Interest income…………………………….. 3,000……………………………………….. 225,000
Expenses:
Office rent…………………………………..15,000
Capital cost allowance……………………………8,000
Salaries paid to staff…………………………… 30,000
Salaries paid to partners…………………………… 80,000
Donations to registered charities……………….. 2,000
………………………………….. 135,000Net income…………………………………..$ 90,000
Compute net income for tax purposes for the partnership. Income Tax Act reference: ITA 96(1)(a), (b), (c).