Christopher Dunn is 37 years old. His Net Income and Taxable Income has been correctly calculated as $131,454.

Included in Taxable income are Eligible dividends of $44.160 and Non-Eligible dividends $17,250.

His employer withheld the following payments from his 2020 Salary.

EI Premiums 856

CPP Contributions 2,898

Contributions to Canadian Cancer Society (Charitable donations) 3,200

Other information:

He has been married to Kathy Dunn for 12 years. During 2020, Kathy has Net Income for Tax Purposes of $8,200, all from investments.

During 2020, Christopher works 275 hours as a volunteer firefighter in his local community. He did not receive any compensation for this work.

After many years of renting, on February 1, 2020, Christopher and Kathy purchase a new residence for $432,000. They get a $200,000 mortgage at 2.5 percent per annum to finance the purchase.

Christopher and Kathy's only surviving parent is her father, Jason. He is 66 years old and, while he is dependent on Christopher and Kathy because of a physical infirmity requiring the use of a wheelchair, his condition is not severe enough for him to qualify for the disability tax credit. His 2020 Net Income For Tax Purposes is equal to $9,400. This includes OAS payments and a small pension from a former employer.

During 2020, Christopher spent $12,000 modifying their new home to accommodate Jason's wheelchair. The work was enduring in nature and will allow Jason to be much more mobile within the home.

During 2020 Christopher paid the following:

Root Canal Fee for Christopher $1,525

Hair Replacement Fees for Christopher 4,300

Prescription Glasses and Contact Lenses for Kathy 1,342

Teeth Whitening Fees for Kathy 2,000

Psychologist Consulting Fees for Kathy 2,450

Electric Wheelchair for Jason 3,300

Physiotherapy Fees for Jason 3,420

Required: Determine Christophers federal Tax Payable for the 2020 taxation year. Show all your calculations.

Question 12 options: