Waves Ltd. is a Canadian-controlled private corporation, operating a small gift store in Kelowna. The company has a December 31^st year-end. Waves' financial statements reported net income before taxes of $220,000 in Year 1. Financial information relating to Year 1 is as follows: Land adjacent to the gift shop was purchased with a $75,000 bank loan during the year and is used as an outdoor sales area. Interest expense on the loan for the year was $9,600, and the fee to obtain the loan was $1,000. Both the interest and the loan fees were expensed by Waves in Year 1. The company hired a contractor to landscape the land. The $5,000 bill for the landscaping was paid in full during the year and capitalized on Waves' Balance Sheet. During the year, a new display case worth $2,000 was purchased and expensed on the books. Amortization expense of $21,000 was deducted during the year. Total CCA (following any adjustments) for the year was $16,000 and is not reflected in the financial statements. The following were also expensed during the year:

Meals with clients	$1,400.00
Lawn mowing service	$1,000.00
Golf dues for employees	$5,000.00
A reasonable reserve for bad debt	$2,000.00

On December 30th, Waves' president announced a bonus to be paid to the company's key employee in the amount of $5,000, which was expensed on the books that day. The employee will receive the bonus in Year 2 in equal payments of $2,500, to be issued on January 30^th and July 30th. Required: Determine Waves Ltd.'s net income for tax purposes for Year 1.