Calculate, for the 2020 taxation year, Taxable Income, Federal Tax Liability before Tax Credits, the maximum Tax Credits and your Federal Tax Balance Owing (Refund). Ignore all GST considerations. Net income for tax purpose is already calculated which equals to $130,221.

Case: Taxpayer Information Jana Larson is a 45 year-old widow. Jana has two children: Olivia: 3 years old. Liam: 11 years old Jana has been employed since March 1, 2016 at ABC Limited, a Canadian Controlled Private Corporation (CCPC) located in Calgary, Alberta. During 2020, her basic gross salary was $120,000. During 2020, her employer withheld the following amounts from her gross salary: Federal income tax $28,000 Employment Insurance premiums 856 Canada Pension Plan contributions 2,898 Registered pension plan contributions 6,200 Disability insurance premiums 700 Other Information: 1. On January 15, 2017, Jana received options to buy 2,500 shares of her employer's common stock at a price of $20 per share. At that time, the fair market value of the shares was $21 per share. She exercised these options on July 6, 2017, when the shares had a fair market value of $25 per share. In 2020, Jana was able to sell 1,000 of the shares for $30 per share. 2. Jana's employer offers employee loans at a low interest rate of 3%. On January 1, 2020, Jana borrowed $450,000 from her employer to buy her very first home. Jana did not pay any of the principal of the loan in 2020 but the interest owing to the employer was paid on January 5, 2021. The prescribed rates for each quarter in 2020 were as follows: Quarter 1-5%, Quarter 2-4%, Quarter 3 - 2%, Quarter 4 - 3%. Jana's new home is 2,200 square metres in size. 3. Jana's employer provided Jana with an automobile since she began working at ABC Limited. The employer acquired the automobile in 2016 for $42,000, plus $2,100 GST. During 2020, Jana drove the automobile a total of 26,000 kilometres, 18,000 of which were related to employment duties. The automobile is available to Jana throughout the year. 4. During 2020, Jana received the following from her employer: She received a $500 Home Depot gift card in recognition of her suggestion to implement a new cost-saving measure. In recognition of Jana's continuous service, she received an anniversary award (i.e. a crystal vase) that has a retail value of $375. At Easter, she received a gift basket. The fair value of the gift basket was $140. 5. In lieu of an in-person Christmas party due to COVID-19, the employer paid for dinner and drinks to be delivered to each employee's home. The fair value of Jana's dinner was $420. 6. Jana's employer made a $3,000 contribution to her Tax Free Savings Account and paid $1,200 for premiums for private health care. 7. Jana made the following disbursements during the 2020: Fees paid to her lawyer to acquire her new home. $ 1,300 Payment of premiums for life insurance 850 Professional dues 1,100 Tuition fee to attend a course needed for her employment** 800 Digital subscriptions to both the Calgary Herald and Globe and Mail 640 ** Jana's employer reimbursed her for the tuition fees for the course. 8. Jana has been working from home since April 1, 2020. Her office space is approximately 25 square metres and is only used for work purposes (i.e. no personal use). She has incurred the following expenses for the year relating to her home: Mortgage interest $15,000 Insurance 3,200 Property taxes 2,800 Electricity and gas 1,400 Television, internet and phone 815 Light bulbs and cleaning supplies 240 Jana's employer has provided her with a signed form T2200 certifying the need for a work space in the home 9. Jana's sister, Mary Duncan, lives with her to help her look after Jana's young children while Jana is working. Mary is 36 years old and her 2020 Net Income for Tax Purposes is $5,800. Mary suffered a serious injury to her back and is unable to work. Her only source of income is from investments that were left to her by her mother who died in 2005. 10. The following 2020 medical and dental expenses were paid for by Jana: Jana $ 900 Olivia 600 Liam 4,800 Mary 9,400 Total $15,700 Jana's private health care plan reimbursed fifty percent (50%) of the above medical and dental expenses for Jana, Olivia and Liam. Mary is not covered for medical expenses under Jana's private health care plan. 11. In 2020, Jana contributed $2,200 to various registered charitable organizations in Canada. 12. In 2020, Jana bought a 50/50 raffle ticket from the social club at her place of employment and won $1,200. The social club is entirely funded and controlled by the employees. 13 Individual Information Birthdate Sin Jana June 1, 1975 Your Student ID Olivia April 1, 2017 527 000 345 Liam March 1, 2009 527 657 315 Mary May 5, 1984 527 657 319 Case: Taxpayer Information Jana Larson is a 45 year-old widow. Jana has two children: Olivia: 3 years old. Liam: 11 years old Jana has been employed since March 1, 2016 at ABC Limited, a Canadian Controlled Private Corporation (CCPC) located in Calgary, Alberta. During 2020, her basic gross salary was $120,000. During 2020, her employer withheld the following amounts from her gross salary: Federal income tax $28,000 Employment Insurance premiums 856 Canada Pension Plan contributions 2,898 Registered pension plan contributions 6,200 Disability insurance premiums 700 Other Information: 1. On January 15, 2017, Jana received options to buy 2,500 shares of her employer's common stock at a price of $20 per share. At that time, the fair market value of the shares was $21 per share. She exercised these options on July 6, 2017, when the shares had a fair market value of $25 per share. In 2020, Jana was able to sell 1,000 of the shares for $30 per share. 2. Jana's employer offers employee loans at a low interest rate of 3%. On January 1, 2020, Jana borrowed $450,000 from her employer to buy her very first home. Jana did not pay any of the principal of the loan in 2020 but the interest owing to the employer was paid on January 5, 2021. The prescribed rates for each quarter in 2020 were as follows: Quarter 1-5%, Quarter 2-4%, Quarter 3 - 2%, Quarter 4 - 3%. Jana's new home is 2,200 square metres in size. 3. Jana's employer provided Jana with an automobile since she began working at ABC Limited. The employer acquired the automobile in 2016 for $42,000, plus $2,100 GST. During 2020, Jana drove the automobile a total of 26,000 kilometres, 18,000 of which were related to employment duties. The automobile is available to Jana throughout the year. 4. During 2020, Jana received the following from her employer: She received a $500 Home Depot gift card in recognition of her suggestion to implement a new cost-saving measure. In recognition of Jana's continuous service, she received an anniversary award (i.e. a crystal vase) that has a retail value of $375. At Easter, she received a gift basket. The fair value of the gift basket was $140. 5. In lieu of an in-person Christmas party due to COVID-19, the employer paid for dinner and drinks to be delivered to each employee's home. The fair value of Jana's dinner was $420. 6. Jana's employer made a $3,000 contribution to her Tax Free Savings Account and paid $1,200 for premiums for private health care. 7. Jana made the following disbursements during the 2020: Fees paid to her lawyer to acquire her new home. $ 1,300 Payment of premiums for life insurance 850 Professional dues 1,100 Tuition fee to attend a course needed for her employment** 800 Digital subscriptions to both the Calgary Herald and Globe and Mail 640 ** Jana's employer reimbursed her for the tuition fees for the course. 8. Jana has been working from home since April 1, 2020. Her office space is approximately 25 square metres and is only used for work purposes (i.e. no personal use). She has incurred the following expenses for the year relating to her home: Mortgage interest $15,000 Insurance 3,200 Property taxes 2,800 Electricity and gas 1,400 Television, internet and phone 815 Light bulbs and cleaning supplies 240 Jana's employer has provided her with a signed form T2200 certifying the need for a work space in the home 9. Jana's sister, Mary Duncan, lives with her to help her look after Jana's young children while Jana is working. Mary is 36 years old and her 2020 Net Income for Tax Purposes is $5,800. Mary suffered a serious injury to her back and is unable to work. Her only source of income is from investments that were left to her by her mother who died in 2005. 10. The following 2020 medical and dental expenses were paid for by Jana: Jana $ 900 Olivia 600 Liam 4,800 Mary 9,400 Total $15,700 Jana's private health care plan reimbursed fifty percent (50%) of the above medical and dental expenses for Jana, Olivia and Liam. Mary is not covered for medical expenses under Jana's private health care plan. 11. In 2020, Jana contributed $2,200 to various registered charitable organizations in Canada. 12. In 2020, Jana bought a 50/50 raffle ticket from the social club at her place of employment and won $1,200. The social club is entirely funded and controlled by the employees. 13 Individual Information Birthdate Sin Jana June 1, 1975 Your Student ID Olivia April 1, 2017 527 000 345 Liam March 1, 2009 527 657 315 Mary May 5, 1984 527 657 319