Avery 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, 2020. Her financial transactions for the 2020 taxation year are shown below. 1. 2. Avery received an annual salary of $55,000. The following was withheld by the employer Income tax (11.000) Company pension contribution (2,200) Canada Pension Plan 2.898) Employment Insurance (856) During the current year. Avery 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. The previous year. Avery 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. 3. 4. As well, Avery had the following receipts for 2020: 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 2020. she made the following disbursements: Winnipeg home down payment (first home) Mortgage payments on her new home Life insurance Charitable donations Contribution to a federal political party Tuition fees to a university (one-day course) $60,000 1,000 400 700 850 400 Required: For the 2020 taxation year, determine the following for Avery a. net income for tax purposes: b. taxable income, and 3(A) Segment A Sub total $ 3(8) 3(0) 3(D) Net Income for tax purposes S 0 Net Taxable income $ 0 C. federal tax liability Net taxable income from above) Federal Income Tax Non-refundable tax credits: Subtotal 0 Non-Refundable tax credits @ 15% Basic federal tax S 0 Less other tax credits: -...Federal.tax.namable Carl Kay is the vice-president of KM Ltd., a Canadian-controlled private corporation located in Halifax, Nova Scotia. KM operates a real estate development business constructing and selling commercial buildings and residential apartments. Carl's 2020 financial transactions include the following: Carl received a salary of $98.000 from KM. From this amount, KM deducted El and CPP of $3.754 (includes CPP enhanced contributions of $166) and income tax of $19,000. The company provided him with a car that cost $45.000 and that has an undepreciated capital cost of $18,000. The operating costs of $3.000 were paid by KM. In 2020. Carl drove the car 20.000 kilometres, of which 7.000 kilometres was for employment purposes. KM contributed $4.000 on Carl's behalf to a deferred profit sharing plan. Although KM does not have a group life insurance plan, it paid Carl's personal life insurance premium of $1,200 (coverage - $75,000). During the year. Carl sold 1.200 shares of KM Ltd. for $10 per share. He had acquired the shares three years earlier for $6 per share as part of a company stock-option plan. At the time of purchase, the shares were valued at $7 per share. In 2020. Cari constructed a 10-suite apartment block. He sold the property in 2020 for $800,000, which was $250,000 more than the original land and building cost. He received $80.000 of the proceeds in cash, with the balance due in five annual instalments beginning in 2021. The property incurred a net rental loss of $8.500 (before amortization). Carl sold his summer cottage for $108.900 after it was announced that a waste disposal site would be developed in the area. He had purchased the cottage six years earlier for $120.000. In 2017, Carl loaned $20,000 to Alloy Ltd., a Canadian-controlled private corporation. All of the company's assets are used in an active business. The 2019 interest of $1,700, which Carl included in income, has not been received. The company is in severe financial difficulty and may not survive beyond next year. Carl sold shares of a public corporation, purchased in 2019 for $14.500, for $24.200. In November. Carl received a legal bill for $2.400 relating to a dispute over a tax reassessment. Carl paid $1.400 in December 2020 and the balance in January 2021. Carl received Eligible dividends of $2.400 and Non-eligible dividends of $1.200 from Canadian corporations and $1.800 from a foreign corporation. The foreign corporation remitted a 10% withholding tax to its government. Carl celebrated his 65th birthday in December 2020. He supports his spouse, who is retired. His spouse had interest income of $4.500 in 2020. During the year. Carl made gifts of $5,000 to a local charity. He paid tuition fees of $700 to attend a 3-month evening course at a university Carl has used his entire capital gain deduction. At the end of 2020, he had unused net capital losses of $12.000 and non-capital losses of $7,000. Required: Calculate Carl's minimum 2020 net income for tax purposes, taxable income, and federal income tax. Segment A Employment income: s 0 Net Employment Income Business income: S 0 Net Business Income Property income: S 0 Net Property Income Segment B Taxable capital gains and Allowable capital losses Segment B Sub Total allowed Segment Segment D Net Income for Tax purposes Taxable income Taxable income from above Federal income tax: Deduct non-refundable credits: Subtotal $ * 15% Basic Federal Tax Federal tax payable Avery 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, 2020. Her financial transactions for the 2020 taxation year are shown below. 1. 2. Avery received an annual salary of $55,000. The following was withheld by the employer Income tax (11.000) Company pension contribution (2,200) Canada Pension Plan 2.898) Employment Insurance (856) During the current year. Avery 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. The previous year. Avery 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. 3. 4. As well, Avery had the following receipts for 2020: 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 2020. she made the following disbursements: Winnipeg home down payment (first home) Mortgage payments on her new home Life insurance Charitable donations Contribution to a federal political party Tuition fees to a university (one-day course) $60,000 1,000 400 700 850 400 Required: For the 2020 taxation year, determine the following for Avery a. net income for tax purposes: b. taxable income, and 3(A) Segment A Sub total $ 3(8) 3(0) 3(D) Net Income for tax purposes S 0 Net Taxable income $ 0 C. federal tax liability Net taxable income from above) Federal Income Tax Non-refundable tax credits: Subtotal 0 Non-Refundable tax credits @ 15% Basic federal tax S 0 Less other tax credits: -...Federal.tax.namable Carl Kay is the vice-president of KM Ltd., a Canadian-controlled private corporation located in Halifax, Nova Scotia. KM operates a real estate development business constructing and selling commercial buildings and residential apartments. Carl's 2020 financial transactions include the following: Carl received a salary of $98.000 from KM. From this amount, KM deducted El and CPP of $3.754 (includes CPP enhanced contributions of $166) and income tax of $19,000. The company provided him with a car that cost $45.000 and that has an undepreciated capital cost of $18,000. The operating costs of $3.000 were paid by KM. In 2020. Carl drove the car 20.000 kilometres, of which 7.000 kilometres was for employment purposes. KM contributed $4.000 on Carl's behalf to a deferred profit sharing plan. Although KM does not have a group life insurance plan, it paid Carl's personal life insurance premium of $1,200 (coverage - $75,000). During the year. Carl sold 1.200 shares of KM Ltd. for $10 per share. He had acquired the shares three years earlier for $6 per share as part of a company stock-option plan. At the time of purchase, the shares were valued at $7 per share. In 2020. Cari constructed a 10-suite apartment block. He sold the property in 2020 for $800,000, which was $250,000 more than the original land and building cost. He received $80.000 of the proceeds in cash, with the balance due in five annual instalments beginning in 2021. The property incurred a net rental loss of $8.500 (before amortization). Carl sold his summer cottage for $108.900 after it was announced that a waste disposal site would be developed in the area. He had purchased the cottage six years earlier for $120.000. In 2017, Carl loaned $20,000 to Alloy Ltd., a Canadian-controlled private corporation. All of the company's assets are used in an active business. The 2019 interest of $1,700, which Carl included in income, has not been received. The company is in severe financial difficulty and may not survive beyond next year. Carl sold shares of a public corporation, purchased in 2019 for $14.500, for $24.200. In November. Carl received a legal bill for $2.400 relating to a dispute over a tax reassessment. Carl paid $1.400 in December 2020 and the balance in January 2021. Carl received Eligible dividends of $2.400 and Non-eligible dividends of $1.200 from Canadian corporations and $1.800 from a foreign corporation. The foreign corporation remitted a 10% withholding tax to its government. Carl celebrated his 65th birthday in December 2020. He supports his spouse, who is retired. His spouse had interest income of $4.500 in 2020. During the year. Carl made gifts of $5,000 to a local charity. He paid tuition fees of $700 to attend a 3-month evening course at a university Carl has used his entire capital gain deduction. At the end of 2020, he had unused net capital losses of $12.000 and non-capital losses of $7,000. Required: Calculate Carl's minimum 2020 net income for tax purposes, taxable income, and federal income tax. Segment A Employment income: s 0 Net Employment Income Business income: S 0 Net Business Income Property income: S 0 Net Property Income Segment B Taxable capital gains and Allowable capital losses Segment B Sub Total allowed Segment Segment D Net Income for Tax purposes Taxable income Taxable income from above Federal income tax: Deduct non-refundable credits: Subtotal $ * 15% Basic Federal Tax Federal tax payable