ackground Information incent Steel, age 54, is the vice-president of ABC Co., a CCPC located in Waterloo, Ontario. ABC o. builds and sells both commercial and residential buildings. Vincent had the following financial ansactions in 2022: - Vincent's annual salary was $98,000 in 2022. ABC Co. deducted $4,453 of CPP and EI (including enhanced CPP contribution) and income tax of $21,000. The company contributed to his DPSP plan in the amount of $4,000. In addition, it also purchased a personal life insurance for Vincent. The life insurance premium paid by ABC in 2022 was $1,200 (coverage - $75,000 ). - Three years ago, Vincent exercised his stock options granted by ABC Co. and purchased 5,000 shares of the company, when the market price of the shares rose to $9 per share. The exercise price of the stock options was $6 per share. In 2022, Vincent sold 1,200 shares for $12 per share. - In 2022, during his after-work hours, Vincent built a 12-suite apartment building for sale. The property was sold for $800,000, which was $250,000 above its cost for tax purposes. Vincent received $80,000 of cash, with the remaining balance due in five instalments starting in 2023. While it was held for sale, the property incurred a net rental loss of $8,500 before depreciation. - Vincent owned a summer cottage in northern Ontario. In 2022, the local government announced that the area would be used to develop a waste disposal site. Vincent sold the cottage for $108,900 to stop loss. The cottage was purchased six years earlier for $145,200. - In 2018, Vincent lent $20,000 to EFG Ltd., a Canadian-controlled private corporation that qualified for small business deduction. EFG Ltd. had been using all its assets to carry on active business in Canada. The interest on the loan in the amount of $1,700 had not been received in 2022, but it was included in income by Vincent on his 2021 tax return. EFG Ltd. is in severe financial difficulty and may not survive beyond next year. - Vincent also disposed of some public company shares for $24,200. The shares were purchased in 2020 for $14,500. - In September 2022, Vincent contributed $25,000 to his RRSP to fully utilize his RRSP contribution room for the year. In the same month, Vincent received a $3,000 legal bill from his layer for a dispute over a tax reassessment. By December 2022, Vincent paid $2,000 for the bill. The remaining balance will be paid in January 2023 . - During 2022, Vincent received eligible dividends of $2,400 and non-eligible dividends of $1,200 from taxable Canadian corporations, plus a $1,800 (after a 10% withholding tax) dividend from a foreign corporation. - Vincent supports his spouse, whose only income is from her online small business. The business only generated $4,500 taxable income in 2022 . - At the beginning of 2022, Vincent's 75 years old mother moved in to stay with him. During the year, Vincent spent $68,000 to renovate his main floor into an in-law suite for his mother to live. Vincent's mother has been disabled and unable to walk, so he built a separate entrance on the side of the house for easier access for his mother. It cost him $9,000 for the entrance and ramp for the wheelchair. Vincent's mother has no income other than OAS benefits. She received $7,784 OAS benefits in 2022 and incurred a total of $4,800 qualified medical expenses during the year. - Vincent is still supporting his 20-year-old son, David, who is a full-time student at Queens university. Each year, David transfers $5,000 tuition tax credit to Vincent. David had no income in 2022. - During the year, Vincent made gifts of $5,000 to a local charity. He paid tuition fees of $700 to attend a three-month evening course at a university. - At the end of 2021, Vincent had used his entire capital gains deduction, and had unused net capital losses of $12,000 and non-capital losses of $7,000 that were realized in 2017. - Vincent's foreign tax credit is $200 for 2022. Required: Calculate Vincent's 2022 net income for tax purposes, taxable income, and federal income tax payable (refund). Show your detailed calculations in good format. Indicate the Income Tax ACT references as necessary. Submission Instructions: a. Include your answers to the assignment questions in a MS Word or Excel, compress your file (strictly enforced), then submit the compressed file in Brightspace. b. You may submit the assignment unlimited times before the due date. ONLY THE MOST RECENT SUBMISSION WILL BE KEPT AND GRADED. c. It is your responsibility to ensure your assignment is submitted successfully. d. It's foreseeable that there might be web traffic near the due time. Please leave sufficient time to submit your assignment. Any technical issues within one hour of the due time will not be considered as valid reasons for late submission. e. No late submissions will be accepted