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 2021 financial transactions include the following: Carl receives a salary of $98.000 from KM. From this amount, KM deducted El and CPP of $4,056 (includes CPP enhanced contributions of $290) and income tax of $21,000. The company provides 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 2021, Carl drove the car 20.000 km. of which 7.000 km 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 2021. Carl constructed a 10-suite apartment block. He sold the property in 2021 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 2022. 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 purchased the cottage six years earlier for $120.000. In 2018. 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 2020 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 2020 for $14,500, for $24,200. In November. Cari received a legal bill for $2.400 relating to a dispute over a tax reassessment. Carl paid $1,400 in December 2021 and the balance in January 2022. 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 2021. He supports his spouse, who is retired. His spouse has interest income of $4.500 in 2021. 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 2021, he has unused net capital losses of $12.000 and non-capital losses of $7,000. Answer is complete and correct. Segment $ $ $ $ 98,000 10,800 3,510 1,200 1,200 S 114,710 $ 250,000 OS (225.000) S 25,000 $ $ Employment income: Salary Car Standby charge Car Operating benefit Life insurance benefit Stock option Benefit Net Employment Income Business income: Gain on Apartment sale Less reserve on sale of apt Net Business Income Property income: Canadian dividends Eligible Canadian dividends Non-eligible Foreign dividend Bad debt - Alloy interest Net Property Income Taxable capital gains and Allowable capital losses Taxable capital gains: KM shares Taxable capital gains: Public corporation Bad debt - Alloy Ltd Loan Segment B Sub Total allowed Legal bill (tax reassessment) CPP enhanced contributions Rental loss Net Income for Tax purposes Stock option deduction Non Capital Loss Carry Forward 3,312 1,380 2,000 (1,700) $ S 4,992 Segment B 1,800 4,850 $ (10,000) $ Segment S Segment D $ S S S (1.400) (290) (8.500) 134,512 (600) (7.000) 126.912 S S Taxable income Answer is not complete. . Taxable income from above $ 128,912 S Federal income tax S S 19,037 Deduct non-refundable credits: Basic tax credit Spousal tax credit Age tax credit 0 CPP El tax credit 4,056 Tuition tax credit $ 700 Education - Part time tax credit x Subtotal 4,756 * 15% Donations tax credit S (842) Eligible dividends tax credit S (558) non-eligible dividends tax credit S (50) Basic Federal Tax Foreign dividend tax credit Federal tax payable