AP 6-15 (Comprehensive Case Covering Chapters 1 to 6) Personal Information Hillary Hawk has been divorced for some time and has sole custody of her two children, Mark and Mandy. Mark is 13 and Mandy turned 18 on July 1, 2023. Hillary does not receive any child support or spousal support from her former husband. Mark is in high school and has no income of his own. In 2023, Mandy was enrolled part time at a local college. Hillary agreed to pay her tuition of $1,800 as long as Mandy transferred the related credit to her (Hillary). Mandy's 2023 net income was $6,300. During the year, Hillary paid $8,000 for orthodontic work (braces) for Mark. She was reimbursed 50% of the amount through her employer's dental and health plan. In 2023 , Hillary made $2,300 of contributions to registered charities. Employment Information Hillary is a sales representative for Bronze Age Inc. (BA), a Canadian public company that specializes in the marketing of metal sculptures. The gross revenues of the company are $322 million. Hillary's employment contract specifies a base salary of $110,000 plus a commission of 2% of her annual cash sales. In 2022, Hillary's cash sales were $4,800,000. In 2023, Hillary's employer withheld the following amounts from her salary: *I Ihe plan is tunded bu/bu by the employees ana the empioyer. Hillary is covered by BA's group term life insurance. Her coverage is equal to her annual base salary ($110,000 for 2023). BA pays a premium to the insurance company of $3 for every $1,000 of coverage. Because of her outstanding sales performance, Hillary received the Salesperson of the Year Award. This award provided her with a cash payment of $1,000, plus an iPad Pro that cost $1,700. In 2023 , BA provided Hillary with an automobile that it leased for $650 per month. The automobile was available for her personal use throughout 2023. During this period, she drove the automobile 42,000 kilometres, of which 38,000 were used for employment and 4,000 for personal use. While BA paid $2,800 to provide Hillary with insurance on the vehicle, they did not pay any of the other operating expenses. Hillary is responsible for her salesperson expenses, including the automobile operating expenses. In 2023 she incurred the following: All of the meals and entertainment with clients relates to travel for her employer while she was away for a period of at least 24 hours. Hillary meets all of the conditions of ITA 8(1)(f), deductible salesperson expenses. Her employer provided her with the T2200 certification. Last year, in July 2022, Hillary's employer transferred her from the Kelowna office to the Vancouver office. All of her moving expenses were paid by her employer. Because she needed to sell her Kelowna home quickly, a $38,000 loss was realized on the sale. While her employer agreed to compensate Hillary for $25,000 of this loss, the payment was not received until February 2023. In April 2021, Hillary's employer granted her the option to purchase up to 3,000 shares of BA for $27 per share under the employee stock option plan. At the time the option was granted, the shares were trading for $25. On March 1, 2023, when the shares were trading at $29 per share, she exercised all of these options. In December 2023, she sold 2,000 shares of the acquired option shares for $33 per share. In April 2021, Hillary's employer granted her the option to purchase up to 3,000 shares of BA for $27 per share under the employee stock option plan. At the time the option was granted, the shares were trading for $25. On March 1, 2023, when the shares were trading at $29 per share, she exercised all of these options. In December 2023, she sold 2,000 shares of the acquired option shares for $33 per share. In order to purchase the 3,000 shares, Hillary negotiated an interest-free loan from her employer for the purchase price. The loan was received on March 1, 2023. Joan repaid the loan in full on December 31, 2023. Hillary estimates only 10% of the internet use was for her business because her children stream a lot of entertainment on a variety of devices. She does not claim CCA on her home as she realizes that if she did, this would result in future recapture and capital gains implications. In 2023 , she purchased additional class 8 property at a capital cost of $12,000. She also sold class 8 property with a capital cost of $9,000 for $1,200. The class 10.1 passenger vehicle had a capital cost $36,000. It was sold in 2023 for $16,000 and replaced with a new passenger vehicle with a capital cost of $41,000. The vehicle is not a zeroemission vehicle. Both vehicles were used solely for the business. She uses the employer-provided automobile for any personal travel. In 2023, the business income, determined using ASPE, was $63,000. Included in this amount were the following: "Hillary aia not velleve mal mese expelises cun Required: For the 2023 taxation year, calculate Hillary's minimum: 1. net income, 2. taxable income, 3. federal income tax payable or refund. In determining these amounts, assume the prescribed rate during all four quarters of 2023 is 2%. Ignore immediate expensing and any GST/HST \& PST considerations