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. Carls 2021 financial transactions include the following:

• Carl receives a salary of $100,000 from KM. From this amount, KM deducted EI 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 $50,000 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 6,000 km was for employment purposes. KM contributed $4,000 on Carls behalf to a deferred profit sharing plan. Although KM does not have a group life insurance plan, it paid Carls personal life insurance premium of $1,300 (coverage $75,000).
• During the year, Carl sold 1,300 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 $300,000 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 $9,400 (before amortization).
• Carl sold his summer cottage for $119,800 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 $22,000 to Alloy Ltd., a Canadian-controlled private corporation. All of the companys assets are used in an active business. The 2020 interest of $1,900, 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 $16,000, for $26,600.
• In November, Carl received a legal bill for $2,600 relating to a dispute over a tax reassessment. Carl paid $1,500 in December 2021 and the balance in January 2022.
• Carl received Eligible dividends of $2,600 and Non-eligible dividends of $1,300 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 $3,500 in 2021. During the year, Carl made gifts of $6,000 to a local charity. He paid tuition fees of $600 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.

Required: Calculate Carls 2021 net income for tax purposes, taxable income, and federal income tax.