The unaudited income statement for Lomas & Sons Limited for its year ended December 31, 2012 shows the following:

The information in the following notes has already been reflected in the above income statement.
(1) Payment made by company on April 1, 2013, to a defined contribution (money purchase) registered pension plan for the president of the company in respect of current employment service, allocated to 2012 expenses by the company's accountant; in addition, the president had $7,500 withheld from his compensation of $74,000 for the RPP................................$ 7,000
(2) Increase in warranty reserve on company's product (net of expense incurred; based on self-insurance warranty program).....................................................................16,000
(3) Amortization expense recorded in the financial statements .............................30,000
(4) Landscaping costs re: factory premises......................................................2,500
(5) Interest on bank loan obtained for the purpose of purchasing common shares in Advanco Ltd., a dividend-paying Canadian corporation...................................................6,300
(6) Legal costs of arranging an agreement among shareholders................................8,500
(7) Legal and accounting fees related to issue of shares.......................................12,700
(8) Interest on municipal real estate taxes paid late in error.................................... 1,000
(9) Golf club membership fees......................................................................2,200
(10) Donation to United Way........................................................................3,000
(11) Meals and entertainment for clients...........................................................4,000
(12) Appraisal fees to determine selling price of fixed assets...................................6,200
(13) Premium on term insurance on life of president with the corporation as beneficiary; policy was not required to be assigned as collateral for corporate borrowing from the bank.................................................................................................... 2,800
(14) Management bonuses ($20,000 of the bonuses expensed in 2012, and shown as "Bonus Payable" on the Balance Sheet as at December 31, 2012 has not been paid at the time of filing the corporate tax return on June 30, 2013)..................................................... 40,000
(15) Amortization of bond discount on bonds issued in 2007................................ 3,400
(16) The company has capitalized and will amortize over five years $90,000 of costs incurred in 2012 related to the purchase of machinery to be used for qualifying research and development. The resultant amortization of the net cost after the investment tax credit was $11,700 and is included in the income statement deduction for research and development expenditures. As well, the company incurred current research and development expenditures of $100,000. These current expenditures will qualify the company for an investment tax credit of $35,000. The $35,000 has been deducted from the expenditure on SR&ED, as shown in the income statement.
(17) Interest and penalties on income tax assessments, expensed for accounting purposes... 1,250
(18) Items included in the financial accounting statements in arriving at the net profit:
Amount paid by an insurance company on its business interruption insurance to compensate for loss of profits when company was closed down for a month during the year because of a fire ............................................................................................................26,800
Dividends received......................................................................................1,700
Volume rebates and discounts on purchases........................................................16,000
REQUIRED
Based on the foregoing information, compute the income from business or property for tax purposes, ignoring tax deductions in respect of depreciable capital or eligible capital property for Lomas and Sons Limited in respect of its 2012 fiscal year. In addition, comment on all items not included in your derivation of income from business or property.

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$ 795,000 Cost of sales. General and administrative expenses Research and development expenditures $350,000 . .. . .. 225,000 .. 76,700 651,700) S 143,300 20,000 s 163,300 Net income before taxes Provision for income taxes . . . c rrent $27,000 -future. . . 25,000 (62,000) Net income after income taxes , , , . , , " , . , , , , , , $ 111300 , , . , .