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, 2022. Hillary does not receive any child support or spousal support from her former husband. go de 19q SSOS OTER no ase meus@ al enciigo 0990 In 2022, her daughter, 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 2022 net 00,8 snt second of income is $6,300. 06019911-1 er 90 2915 23 so bi 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 2022, Hillary made $2,300 of contributions to registered charities. asili-1 Mark is in high school and has no income of his own. apr erit hieqer neol, SSOS Employment Information Hillary is a sales representative for Bronze Age Inc. (BA), a Canadian public company that special- izes in the marketing of metal sculptures. RPP contributions CPP contributions El premiums Premiums for BA's dental and health plan* is not amor hov Hillary's employment contract specifies a base salary of $100,000 plus a commission of 2% of her annual cash sales. In 2022, Hillary's cash sales were $4,800,000. In 2022, Hillary's employer withheld the following amounts from her salary: unseta rs Professional association dues vid Visli 91 sen-ere Federal income tax mil ton 108 6,200 3,500 Jet 953 seniaus 3,200 atto 2,700 Ino to yte 39,400 *The plan is funded 50/50 by the employees and the employer. 8000 Sondae visli bib

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, 2022. 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 2022, her daughter, Mandy, was enrolled part time at a local college. Hillary agreed to pay her tution of $1,800 as long as Mandy transferred the related credit to her (Hillary). Mandy's 2022 net income is $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 2022, 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 specialies in the marketing of metal sculptures. Hillary's employment contract specifies a base salary of $100,000 plus a commission of 2% of her annual cash sales. In 2022, Hillary's cash sales were $4,800,000. ln2022, *The plan is tundeu uvive., Hillary is oovered by BAs group term Me insurance. Het coubrioe is doul to har whin solary i\$100,000 for 20221. 8A pays a premium to the insurance tomcacly of it for thal 6 thry of coverage. Because of her outstanding sales performance, Hillary recetued the Solescosion of sex. 12022. BA provides Hillay with an automohile that it leatas for scs0 per morth. The ayting 51,700 kilometres, of which 38,000 were used for employment and 4,000 for persond use Vhes pays \$2,800 to provide Hilisry with insurance on the vehicle, they do not pary any of the aty operating expenses. Hillary is responsible for her salesperson expenses fincluding the automobile openitifg tisaryes In 2022 she incurred the following Hillary meets all of the conditions of ITA B/t)(f) of the ITA ideducticle selesgerson toperati 9 is: has a T.2200 from her employer. Last year, in July 2021. Hillary's employer transfarred her from the Kelowna office to to Vancouver office. All her moving expetises wore paid by her employec. Because she reedatte sell her Kelowna home quickly, a 538,000 loss was incurred on the sale. Whie her entoby agreed to compensate Hillary for $25,000 of this loss, the psyment was not recelied ats. February 2022 In April 2020, Hilary's emplover granted her the right to purchase up 103,000 shases of 84 for 5 II per share under the employee stock option plan. At the time the option vas granted, the stat wore trading for $25, On March 1,2022 , when the shares were trading at 529 per stare st exorcised all of these options. In Docember 2022 , she sold 2,000 shares of the acpirtd egom shares for $33 per share. In order to purchase the 3,000 shares. Hagry negotiated an interest-free loan from her anpoe for the purchase price. The loan was recelved on March 1, 2022. Joah recald the lun in fula December 31,2022 Business Information In addition to her employment ingome, Hillary carries on a business, as a sole prepretoc the advises individuals and corporations on purchases of vanous types of art for ther homes %. offices. Hillary uses 15% of the livable space, including a component for common areas in te Vancouver horne for this business. Her 2022 home expenses inclube the followiry Hilary estimates only 10% of the internet use was for her busmess because ther childen seate: lot of entertainment on a variety of divices. She does not clain CCA on her hore us she rolst that it she did, this would result in future recapture and capital gains implications. Income or Loss from a Business 373 Assignment Problems 1, 2022, the business had the following UCC balances: in 2022, she acquires 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 2022 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 sutomobile for any personal travel. ln2022, the business income, determined using ASPE, was $63,000. Included in this amount were the followi Required: For the 2022 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 2022 is 2%. Ignore any GST/HST \& PST considerations