On February 1, 2012, Wynn, a recent commerce graduate, began a self-employed, unincorporated coffee business, Chino's & Beano's Unlimited. Wynn would like assistance preparing his 2010 tax return. He has prepared a brief, unaudited statement of income.
Chino's & Beano's Unlimited Statement of
Income For the year ended December 31,
2012

Expenses:
Travel - meals.......................................................... $1,500
Travel - accommodation................................................2,000
Travel - total operating expenses - car................................2,350
Sales manager's convention...................................................600
Salaries paid to staff........................................................30,000
Health club dues...............................................................2,200
Child care and housekeeping expenses (nanny - single parent)......12,000
Home office expenses (Note e)...............................................1,400
Telephone bills.....................................................................350
Office supplies ..................................................................1,700
Entertainment - drinks and meals............................................1,800
Private dental plan - for staff members..................................... 2,400
Restaurant structural renovation costs.......................................21,200
Straight-line amortization........................................................3,800
Total expenses...................................................................83,300
Net loss before tax............................................ ...............($11,500)
Wynn also supplied the following additional information:
(a) Wynn used his personal automobile for all his business travel. The $2,350 represents his total expenses for the 12-month period. His travel log included business mileage of 14,400 kilometres; the total number of kilometres driven during the 12-month period total led 18,000 kilometres.
(b) Wynn would like to deduct all of his nanny expenses against his income since the expenses were incurred to earn income.
(c) There are no unrecorded revenues. However, Wynn feels that $380 of his accounts receivable balance is uncollectible because the customers recently declared bankruptcy. Wynn did not provide for this bad debt expense in his financial statements.
(d) The structural renovation of the coffee shop included new walls, flooring, an office for Wynn, and a kitchen.
(e) To ease the burden of being a single parent, Wynn set up a home office. Wynn uses the office to complete his administrative work in the evenings. The home office expenses relate to a proportion of heat, light and power.
REQUIRED
Ignoring CCA, compute Wynn's net income from a business for tax purposes.

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Sales revenue... $95,000 $1,200 Cost of goods sold. 22,000 23,200 $71,800 Gross profit .