Abra Swan is 30 years old and single. She is employed as a middle-level manager with a national Canadian company. After living and working for five years in Regina, Saskatchewan, she was transferred to her employer's office in Winnipeg on December 15, 2019. Her financial transactions for the 2019 taxation year are shown below. 1. Swan received an annual salary of $55,000. The following was withheld by the employer Income tax (10,000) Company pension contribution (2,200) Canada Pension Plan (2,372) Employment Insurance (810) 2. During the current year, Swan purchased 1,100 shares of her employer's company (a public corporation) under a stock-option program. The shares cost $10 each and at the time of purchase had a market value of $14. When the stock option was granted two years ago, the share price was $11. To fund the purchase, she borrowed $10,000 from her bank. During the year, she paid interest of $900 on the loan. 3. The previous year, Swan had unwisely invested in commodity futures and lost a large portion of her savings. She considered this loss to be a business loss but was unable to use the full amount for tax purposes because her other income was not sufficient. Of the total loss, $6,600 was unused. 4. As well, Swan had the following receipts for 2019: Dividends from taxable Canadian corporations (Eligible) Dividends of $1,000 from a foreign corporation, less foreign taxes of $150 Cash received from RRSP withdrawal used to purchase home Proceeds from the sale of public corporation shares (originally purchased for $20,000) $4,400 850 25,000 28,600 5. In 2019, she made the following disbursements: Winnipeg home down payment (first home) $60,000 Mortgage payments on her new home Life insurance Charitable donations Contribution to a federal political party Tuition fees to a university (one-day course) 1,000 400 700 850 400 Required: For the 2019 taxation year, determine Swan's a. net income for tax purposes; b. taxable income, and $ $ $ 55,000 4,400 (2,200) $ 1,000 $ 3(A) Salary Stock option benefit Registered Pension Plan Contribution Canadian dividends Foreign dividends interest on loan for shares Segment A Sub total 3(B) Taxable capital gains 3(C) Other Deductions d(D) Losses Net Income for tax purposes Non Capital Loss Carry Forward Net Taxable income 58,200 $ 0 $ 0 $ $ $ 58,200 (6,600) 51,600 C. federal tax liability. $ 3,182 $ 400 $ 5,000 Net taxable income (from above) Federal Income Tax Non-refundable tax credits: Basic Personal tax credit CPP El tax credit Employment tax credit Tuition tax credit First Time home buyer's credit Subtotal Non-Refundable tax credits @ 15% Donations tax credit Eligible dividends tax credit Basic federal tax Less other tax credits: Foreign dividend tax credit Political Tax credit Federal tax payable $ 8,582 1.11 $ 0 $ 0 Abra Swan is 30 years old and single. She is employed as a middle-level manager with a national Canadian company. After living and working for five years in Regina, Saskatchewan, she was transferred to her employer's office in Winnipeg on December 15, 2019. Her financial transactions for the 2019 taxation year are shown below. 1. Swan received an annual salary of $55,000. The following was withheld by the employer Income tax (10,000) Company pension contribution (2,200) Canada Pension Plan (2,372) Employment Insurance (810) 2. During the current year, Swan purchased 1,100 shares of her employer's company (a public corporation) under a stock-option program. The shares cost $10 each and at the time of purchase had a market value of $14. When the stock option was granted two years ago, the share price was $11. To fund the purchase, she borrowed $10,000 from her bank. During the year, she paid interest of $900 on the loan. 3. The previous year, Swan had unwisely invested in commodity futures and lost a large portion of her savings. She considered this loss to be a business loss but was unable to use the full amount for tax purposes because her other income was not sufficient. Of the total loss, $6,600 was unused. 4. As well, Swan had the following receipts for 2019: Dividends from taxable Canadian corporations (Eligible) Dividends of $1,000 from a foreign corporation, less foreign taxes of $150 Cash received from RRSP withdrawal used to purchase home Proceeds from the sale of public corporation shares (originally purchased for $20,000) $4,400 850 25,000 28,600 5. In 2019, she made the following disbursements: Winnipeg home down payment (first home) $60,000 Mortgage payments on her new home Life insurance Charitable donations Contribution to a federal political party Tuition fees to a university (one-day course) 1,000 400 700 850 400 Required: For the 2019 taxation year, determine Swan's a. net income for tax purposes; b. taxable income, and $ $ $ 55,000 4,400 (2,200) $ 1,000 $ 3(A) Salary Stock option benefit Registered Pension Plan Contribution Canadian dividends Foreign dividends interest on loan for shares Segment A Sub total 3(B) Taxable capital gains 3(C) Other Deductions d(D) Losses Net Income for tax purposes Non Capital Loss Carry Forward Net Taxable income 58,200 $ 0 $ 0 $ $ $ 58,200 (6,600) 51,600 C. federal tax liability. $ 3,182 $ 400 $ 5,000 Net taxable income (from above) Federal Income Tax Non-refundable tax credits: Basic Personal tax credit CPP El tax credit Employment tax credit Tuition tax credit First Time home buyer's credit Subtotal Non-Refundable tax credits @ 15% Donations tax credit Eligible dividends tax credit Basic federal tax Less other tax credits: Foreign dividend tax credit Political Tax credit Federal tax payable $ 8,582 1.11 $ 0 $ 0