CANADIAN TAX $-$ USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS

Linda James $(40$ years old$)$ is an employee of a Canadian controlled private corporation $($CCPC$).$ She is married to Steven $(45$ years old$),$ who is a stay$-$at$-$home Dad. They have a $5$ year old daughter who is severely disabled, and has been certified by her Doctor for the disability tax credit. Linda$$s mother also lives with them. She is $75,$ healthy, and has net income of $$16,000.$

Notes:

$1.$ Linda received gross salary of $$85,000.$ From this amount, CCPC deducted income taxes of $$22,000,$ CPP contributions of $$3,754\mathrm{.}45,$ EI premiums of $$1,002\mathrm{.}45,$ registered pension plan contributions of $$6,000,$ and union dues of $$550.$

$2.$ In addition to her salary, the CCPC paid the following on Linda$$s behalf:

Registered pension plan $-$ $$6,500$

Group private medical and dental insurance $-$ $$625$

Group disability insurance premium $-$ $$300$

$3.$ Linda had the use of a car which the CCPC purchased for $$35,000$ and that currently has a net book value of $$21,000.$ She drove a total of $25,000$ km$,$ of which $19,000$ km were for employment purposes. The company paid all of the operating expenses of $$4,500.$

$4.$ Linda participates in the CCPC$$s stock option plan. In May of $2005,$ she received options to purchase up to $2,500$ shares at $$10$ per share. CCPC$$s shares were valued at $$9$ at this date. She exercised the options on June $17,2018.$ At this time, the shares were valued at $$15$ per share. On September $27,2023$ she sold $1,000$ of these shares for $$20$ per share and paid brokers fees of $$500.$

$5.$ Linda recently received a small inheritance from her great Aunt. She has decided to catch up on her retirement savings and on December $1,2023,$ purchased $$13,000$ in RRSPs for herself and $$4,000$ in RRSPs for her husband. Her $2022$ Notice of Assessment indicates that her earned income was $$75,000,$ her pension adjustment is $$8,000$ and that she has $$15,000$ in unused contribution room.

$6.$ Other receipts and $($disbursements$)$ during the year:

Prescription medicine for mother $($$$2,500)$

Sale of ring $[$cost $$800]$ $$1,300$

Donation to registered charity $($$$4,000)$

$7.$ A review of Linda$$s $2022$ T$1$ revealed the following information:

Net$-$capital losses carryforward from $2014$ of $$27,000.$

QUESTION$----------------------$

For the $2023$ taxation year, calculate the following for Linda:

$($A$)$ NET INCOME, which includes her net employment income, net taxable capital gains, and other deductions.

$($B$)$ Use the net income from part $($a$)$ above to calculate her TAXABLE INCOME. HINT: Deduct net capital losses and apply a stock option deduction.