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AP6-15 (Comprehensive Case Covering Chapters 1 to 6) personal Information Hiliay. Hawk has been divorced for some time and has sole custody of her two

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AP6-15 (Comprehensive Case Covering Chapters 1 to 6) personal Information Hiliay. 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 ar 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 specialites in the marketing of metal sculptures. Hillar'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, Hillarv's employer withheld the following amounts from her salary: *The plan is funded 50/50 by the empioyees ariu uro u..., of coverage. Bocause of her outstanding sales performance. Hlary recgived the Salespecton of by-3 Award, This oward provided her with a cash parment of 51,000, pluo an ipad pro they as 5., 700 In 2022. BA provides Hilary with an automobile that it leases for $650 per month. The aulom Was availabte for her personal use throughtugt 2022 . Buring this period, she trow tho tibliog kilometres, of which 39,000 were used for employment and 4,000 for personar use, Whis? Aays $2,800 to whide opeiating expenses. In 2022 bhe incuired the following: Hillary meets all of the conditions of ITA 8 it) of the ITA (deductiblo solesperson expenses has a T:2200 trom her employec Last year, in July 2021. Hally's employer transferred her from the Kelowna office is s, Vancouver office. Al her moving expenses wore poid by her employer. Because she nesosed sell her Kolowna home quickly, a $38,000 loss was incurred on the sale. While nepestsof agreed to compensate Hillary for $25,000 of this loss, the payment was not receined February 2022 In April 2020, Hillary's emplover granted her the right to purchase up to 3,000 shares of BAller ted per share under the employee stock option plan. At the time the option was granted, the storng were trading for $25. On March 1, 2022, when the shares wore trading at $29 per share, she exercised all of these options. In December 2022, she sold 2,000 shares of the acquired ofte shares for $33 per share. In order to purchase the 3.000 shares. Hilary negotiated an interest-free loan from her enobert for the purchase price. The loan was received on March 1, 2022. Joan repaid the loan in fald of December 31, 2022. Business Information In addition to her employment income, Hillary carries on a business, as a sole proprietor by advises individuals and corporations on purchases of various types of art for their hotne iny offices. Hillary uses 15% of the livable space, including a component for common areas, it te Voncowvor home for this business. Her 2022 home expenses include the following: Hillary estimates only 10% of the internet use was for her business because her children steent lot of entertainment on a variety of devices. She does not claim CCA on her home as she redim that if she did, this would result in future recapture and capital gains implications. on Class 8 Class 10.1 $6,912 12,495 1n2022. she acquires additional class 8 property at a capital cost of $12,000. She also sold class 8 in 2 en with a capital cost of $9,000 for $1,200. eclass10.1 passenger vehicle had a capital cost $36,000. It was sold in 2022 for $16,000 and medered with a new passenger vehicle with a capital cost of $41,000. The vehicle is not a zerofil sion vehicle, Both vehicles were used solely for the business. She uses the employerprovided julomobie for any personal travel. 1022 , the business income, determined using ASPE, was $63,000. Included in this amount were the tollowir fequired: 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

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