Brendan Martin is a retired 68 year old pensioner. In November he moved from Calgary to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Brendan Martin is a retired 68 year old pensioner. In November he moved from Calgary to Edmonton to be closer to family. He sold his Calgary condo for $468,000 and moved into a rented apartment in Edmonton. Brendan didn't have any friends in Edmonton so he took a part time job to keep him busy. His net employment income was $3,480 for 2020. Brendan also received $6,100 from his RRIF, $25,300 from a pension and $7,900 in CPP Benefits. Because he received CPP benefits, no CPP or EI was withheld from his employment income. Brendan also inherited $15,000 from his aunt who passed away in May. On September 1, 2020 Brendan purchased a 3 year 5.4% $10,000 bond with interest paid at maturity. Because the market price was 6% on that date, the bond price was $9,770. Brendan purchased his Calgary condo in 2008 for $344,000. He had used his principal residence exemption in 2014 for the sale of his Sylvan Lake cottage. The cottage was sold for a gain of $156,300 and the years 1995 to 2013 were designated to the cottage. Brendan owns shares in a non-registered account. He gave 100 shares of Thiessen Ltd, a Cdn public company, to each to his 3 minor grandchildren on June 30. He purchased the shares originally for $35 per share plus a brokerage fee of 1.5%. The shares were trading at $43 per share on June 30. On October 1, the shares paid a dividend of $4.25 per share. Brendan received $2,890 of dividends net of withholding taxes of $510 from shares of Ragnarok Ltd., an Icelandic company. Brendan used a moving company to move from Calgary to Edmonton which cost him $5,300. He also spent $45 on gas and $58 on meals on his moving day. He spent 3 days in a hotel in Edmonton while the repairs and maintenance were being completed in his apartment. The hotel cost $156 per night. On December 16, Brendan sold 300 shares in De Cruz Ltd resulting in a $4,800 loss. However, on January 3, 2021 Brendan read that the company had signed a multi-million dollars deal with the federal government. So on that date, he repurchased 200 of the shares for $29 per share. He had originally purchased the shares for $45 per share. Required: Calculate Brendan's minimum Net Income for Tax Purposes, Taxable Income and Federal Taxes payable for 2020. Brendan Martin is a retired 68 year old pensioner. In November he moved from Calgary to Edmonton to be closer to family. He sold his Calgary condo for $468,000 and moved into a rented apartment in Edmonton. Brendan didn't have any friends in Edmonton so he took a part time job to keep him busy. His net employment income was $3,480 for 2020. Brendan also received $6,100 from his RRIF, $25,300 from a pension and $7,900 in CPP Benefits. Because he received CPP benefits, no CPP or EI was withheld from his employment income. Brendan also inherited $15,000 from his aunt who passed away in May. On September 1, 2020 Brendan purchased a 3 year 5.4% $10,000 bond with interest paid at maturity. Because the market price was 6% on that date, the bond price was $9,770. Brendan purchased his Calgary condo in 2008 for $344,000. He had used his principal residence exemption in 2014 for the sale of his Sylvan Lake cottage. The cottage was sold for a gain of $156,300 and the years 1995 to 2013 were designated to the cottage. Brendan owns shares in a non-registered account. He gave 100 shares of Thiessen Ltd, a Cdn public company, to each to his 3 minor grandchildren on June 30. He purchased the shares originally for $35 per share plus a brokerage fee of 1.5%. The shares were trading at $43 per share on June 30. On October 1, the shares paid a dividend of $4.25 per share. Brendan received $2,890 of dividends net of withholding taxes of $510 from shares of Ragnarok Ltd., an Icelandic company. Brendan used a moving company to move from Calgary to Edmonton which cost him $5,300. He also spent $45 on gas and $58 on meals on his moving day. He spent 3 days in a hotel in Edmonton while the repairs and maintenance were being completed in his apartment. The hotel cost $156 per night. On December 16, Brendan sold 300 shares in De Cruz Ltd resulting in a $4,800 loss. However, on January 3, 2021 Brendan read that the company had signed a multi-million dollars deal with the federal government. So on that date, he repurchased 200 of the shares for $29 per share. He had originally purchased the shares for $45 per share. Required: Calculate Brendan's minimum Net Income for Tax Purposes, Taxable Income and Federal Taxes payable for 2020.
Expert Answer:
Answer rating: 100% (QA)
To calculate Brendans net income for tax purposes we need to add up all his income and subtract any ... View the full answer
Related Book For
Canadian Income Taxation Planning And Decision Making
ISBN: 9781259094330
17th Edition 2014-2015 Version
Authors: Joan Kitunen, William Buckwold
Posted Date:
Students also viewed these accounting questions
-
In June 2020, Mr. Smith moved from Calgary to Vancouver to start a new job. In his 2020 fiscal year, he earned employment income of $50,000 in his new job. He was not reimbursed by his employer for...
-
Sylvan Inc. entered into a noncancelable lease arrangement with Breton Leasing Corporation for a certain machine. Bretons primary business is leasing; it is not a manufacturer or dealer. Sylvan will...
-
Martin owns equipment used in his trade or business purchased four years ago for $200,000. Martin sells the equipment in the current year for $110,000 when its adjusted basis is $52,000. No other...
-
On April 1, 2014, Briggs Corp. purchases a 24-month property insurance policy for $72,000. The policy is effective immediately. Assume that Briggs prepares adjusting entries only once a year, on...
-
For the frame and loading shown, determine the components of the forces acting on member ABC at B and C. -12 m 7 in- -11 in- -12 in 3.5 in. 3.5 in. 12 in
-
Based on Fig. P7.82, how much elastic potential energy is stored in the DNA when it is stretched 50 nm? (a) 2.5 * 10 -19 J; (b) 1.2 * 10 -19 J; (c) 5.0 * 10 -12 J; (d) 2.5 * 10 -12 J. A DNA molecule,...
-
Why did European companies rid themselves of so much debt in 19801998? Why did they stop doing it in 19982002?
-
The Mound View Motel opened for business on May 1, 2010. Its trial balance before adjustment on May 31 is as follows In addition to those accounts listed on the trial balance, the chart of accounts...
-
f R is the total resistance of three resistors, connected in parallel, with resistances R, R2, R3, then 1 1 R R. + 1 1 + R2 R3 If the resistances are measured in ohms as R = 82, R2 = 20 2, and R3 =...
-
Refer to your answers to Problem 31-7 when answering the following questions. a. Which one of the following rates of exchange of portable power banks for flash memory drives will be acceptable to...
-
Anita Kaur runs a courier service in downtown Seattle. She charges clients $0.60 per mile driven. Anita has determined that if she drives 2,250 miles in a month, her total operating cost is $625. If...
-
Water has a specific heat of 4.18 J/g- C. What is the quantity of energy (in kJ) required to increase the temperature of a 50.0 g sample of water from 25 C to 99 C? Your solution must include a...
-
You, a finance graduate, bought a run-down house for $450,000, renovated it and then you place the house in the market for sale. You find that the market value of your renovated house is $600,000....
-
Did the actual spending stay within the projected budget? If not, where did the overspending occur? Be sure to consider those planned expenses vs impulse expenses. Was the proposed budget appropriate...
-
Assume that an organization s employees have each been given a computer and a core application to perform their work. Each employee s computer runs its own instance of the core application, which...
-
You are evaluating a capital project with a Net Investment of $800,000, which includes an increase in net working capital of $8,000. The project has a life of 20 years with an expected salvage value...
-
Please help solve this. Seneca Hill Hotel is considering expanding its banqueting facility. The following table shows the 3 alternatives, the states of nature and their payoffs: m Demand Demand...
-
Which of the following raises the credibility of areport? Which of the following raises the credibility of a report? Multiple Choice avoiding predictions avoiding the use of cause-effect statements...
-
Interest income and/or rental income earned by one Canadian-controlled private corporation may be treated as specified investment business income. At the same time, income from the same source(s)...
-
If a group of business assets is being sold for a total agreed price, is it important that the vendor and the purchaser seriously consider how the total price will be allocated to the separate assets...
-
Wai Yeung is a self-employed insurance saleswoman. She started her business on July 1, 20X1, and ended her first taxation year on December 31, 20X1. On July 1, 20X1, she purchased a car for $32,000...
-
College Textbook Publishers Inc. has prepared income statements segmented by divisions, but management is still uncertain about actual performance. Financial information for May is given as follows:...
-
All Things Greek Inc. has three sales divisions. One of the key evaluation inputs for each division manager is the performance of his or her division based on division income. The division statements...
-
Six Flags Theme Parks Inc. operates theme parks in the United States, Mexico, and Europe. One of its first theme parks, Six Flags over Georgia, was built in the 1960s in Atlanta on a large tract of...
Study smarter with the SolutionInn App