The following income statement was prepared for the Alpha Beta Partnership, a partnership comprising two individuals that carries on an active business:

The partners drew a total of $67,000 in “salaries”.

REQUIRED

Compute the income to be allocated to the partners for income tax purposes. Assume that the office furniture is included in Class 8 for capital cost allowance purposes. The capital cost allowance available in respect of the office furniture is $2,750, based on an undepreciated capital cost of $13,750.

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Gross revenue Less: Office salaries Rent Office supplies Alpha Beta Partnership INCOME STATEMENT For the year ended December 31, 2016 Amortization on office furniture Charitable donations Gain on sale of securities Dividends (actual) received from taxable Canadian public corporations Net income $29,000 42,000 8,950 3,375 3,000 $50,000 4,000 $350,000 86,325 $263,675 54,000 $317,675