1 Jack Leonard has asked you to assist him in preparing his 2010 tax return. To this end, he provides you with the following information. Mr. Leonards employer is a large, publicly traded corporation. During 2010, Mr. Leonard received a gross annual salary of $58,000, living accommodations having a fair market value of $1,000 per month, and an award of $2,100 in recognition of outstanding job performance. Awards for performance are paid instead of investing in employee benefits, so there is no pension plan and Mr. Leonards 2009 Pension Adjustment amount is nil. His employer withheld the maximum for CPP contributions and EI premiums. Mr. Leonard provides the following list of receipts and disbursements for the 2010 taxation year: Receipts Directors Fees $ 1,300 Royalties On Patent Purchased In 1999 24,070 Bond Interest 430 Disbursements RRSP Contribution On July 6, 2010 $3,600 Rent Paid To Employer For Living Accommodation 1,200 Financial Support Of His Aunt 7,100 Mr. Leonard provides you with the following information on his dispositions of property during the year: Proceeds Cost Diamond Ring $1,200 $ 950 Painting 1,100 1,800 Pistol Collection 2,000 1,400 On further enquiry, you learn that he is married and has one 19 year old son. Mr. Leonards wife had income of $2,990 during the year. His son lives at home and was employed during twelve weeks of the summer at a golf course as a greens keeper, at a salary of $250 per week. In September, he left his employment to commence full time studies at university. Tuition fees paid for the 2010 calendar year amounted to $3,000, and were paid by Mr. Leonard. The sons only other source of income was $700 in interest on bonds received from his father as a birthday gift in 1999. He will transfer any unused credits to his father. Assume Mr. Leonards 2009 Earned Income for RRSP purposes was equal to his 2010 Earned Income. Required: For 2010, compute the following amounts for Mr. Leonard in accordance with the provisions of the Income Tax Act. Indicate any available loss carry over amounts and the applicable loss carry over provisions. A. Net employment income. B. Income from property. C. Taxable capital gains less allowable capital losses. D. Net Income For Tax Purposes. E. Taxable Income. F. Federal Tax Payable