Comprehensive Problem Riley Sims is a financial analyst employed by Mega Computers Inc, a public corporation. His personal information is provided below: Personal Information Taxpayer | Title Mr. First Name Riley Last Name Sims SIN 527-000-509 | Care of field in Profile Your name Street Address Small Street City Port Perry Province Ontario Postal Code N2L 3B1 | 111 Phone Number 289-111-1111 Date of birth 1964-06-17 Marital Status Married Canadian Citizen? Provide Information to Elections Canada? Yes | Own foreign property of more than $100,000 No Canadian? Yes You are not being provided Riley's T4 rather all of the applicable references are provided for you to complete his 2019 tax return. Riley's salary is $150,000 (T4 Box 14), none of which is commission income. In addition, he was awarded an incentive bonus of $45,000. One-third of this bonus was paid during 2019, with the balance due in February 2020. The amount taxed in 2019 should be included in T4 Box 14. Mr. Sim's employer withheld the following amounts from his earnings: EI Premiums (T4 Box 18) CPP Contributions (T4 Box 16) RPP Contributions (T4 Box 20) Income Taxes (T4 Box 22) Contributions To United Way (T4 Box 46) Pension Adjustment (T4 Box 52) $ 860 2,749 6,400 49,000 5,000 30,000 Mr. Sims is married to Janie Sims, who has been legally blind since an automobile accident that occurred several years ago. She is 56 years old. Together, they have 3 children. Family Spouse Child Child Child | Mary Sims | Member First Name Last Name SIN Date of Birth | Net Income Janie Sims 527-000-483 1963-02-15 $5,000 Martha Sims 527-000-451 2004-03-31 $11,000 527-000-361 1999-07-20 $4.800 Mark Sims 527-000-222 1997-11-10 NIL All the children live with their parents. Martha is in high-school and Mary has mental health problems that prevent her from working on a full time basis. Mark attends university on a full time basis for 10 months of the year. His tuition fees are $11,000. As he has no income of his own, he has agreed to transfer all of his education related credits to his father. The family's 2019 medical expenses, all of which were paid by Mr. Sims, were as follows: | Month /Date Patient Description Amount Expense Feb. 2 Riley Optician Prescription glasses 2,500 Mar. 3 Janie Pharmacy Prescription drugs 2,000 Mar. 20 Janie Dr. Black Group Therapy 1.200 Jun. 20 Martha Dr. White Dental 1,800 Aug. 5 Mary Hearing aid Hearing Aids 3,000 clinic Sept.20 Mary Pharmacy Prescription drugs 6,300 Dec. 20 Mark Dr. Johnson Orthodontics 2,500 Other Information: 1. Employment income and all employment related benefits should be considered as being included in T4 (Box 14) for purposes of completing the return on Profile. Hint: example of employment related benefits to be included in box 14 of Riley's T4 in Profile would be an automobile benefit. 2. Mr. Sims is provided with an automobile by his employer. The automobile is leased at a rate of $600 per month, including applicable HST. This payment also includes a payment of $60 per month for insurance coverage. During 2019, the automobile is driven 57,000 kilometres, of which 42,000 were employment related. The automobile was used by Mr. Sims for 10 months during 2019. She was required to return the automobile to her employer's garage during the month that she did not use it. 3. Throughout their marriage, the Sims have always lived in rented premises. Seeing the current level of mortgage rates as presenting an opportunity to acquire a residence, they purchase a 4 bedroom bungalow in the same neighbourhood for $450,000 on April 1, 2019. On this date, his employer provides Mr. Sims with a $300,000 loan that will facilitate this acquisition. The loan requires payments of interest at a low rate of 1%. Assume that the prescribed rate is 5 percent throughout 2019. 4. During 2019, Mr. Sims receives several gifts from her employer: a) As is the case for all of her employer's senior staff, he receives a $400 gift certificate that can be used for merchandise at a local clothing store. b) In recognition of 10 years of continuous service, he receives an engraved wrist watch. The retail value of this watch is $1,200. c) At Christmas, all of the employees of her employer receive a gift basket containing gourmet food. The retail value of this basket is $300. 5. During 2019, Mr. Sims received options to purchase 1,200 shares of his employer's stock at a price of $37 per share. At the time the options were granted, the market price of the shares was $40 per share. During July, 2019, when the shares are trading at $45 per share, Mr. Sims exercises all of these options. He sells all of these shares on December 31, 2019 for $55 per share. 6. Mr. Sims is a member of the Financial Analysts Professional Association and paid $1,200 in dues during 2019. His employer doesn't require this membership but he wants to maintain it and pays the dues personally. 7. Mr. Sims earned $2,200 of interest on his bank's savings account during the year. Hint: a bank account is considered property and interest earned on that property is therefore considered property income which is part of total income. Comprehensive Problem Riley Sims is a financial analyst employed by Mega Computers Inc, a public corporation. His personal information is provided below: Personal Information Taxpayer | Title Mr. First Name Riley Last Name Sims SIN 527-000-509 | Care of field in Profile Your name Street Address Small Street City Port Perry Province Ontario Postal Code N2L 3B1 | 111 Phone Number 289-111-1111 Date of birth 1964-06-17 Marital Status Married Canadian Citizen? Provide Information to Elections Canada? Yes | Own foreign property of more than $100,000 No Canadian? Yes You are not being provided Riley's T4 rather all of the applicable references are provided for you to complete his 2019 tax return. Riley's salary is $150,000 (T4 Box 14), none of which is commission income. In addition, he was awarded an incentive bonus of $45,000. One-third of this bonus was paid during 2019, with the balance due in February 2020. The amount taxed in 2019 should be included in T4 Box 14. Mr. Sim's employer withheld the following amounts from his earnings: EI Premiums (T4 Box 18) CPP Contributions (T4 Box 16) RPP Contributions (T4 Box 20) Income Taxes (T4 Box 22) Contributions To United Way (T4 Box 46) Pension Adjustment (T4 Box 52) $ 860 2,749 6,400 49,000 5,000 30,000 Mr. Sims is married to Janie Sims, who has been legally blind since an automobile accident that occurred several years ago. She is 56 years old. Together, they have 3 children. Family Spouse Child Child Child | Mary Sims | Member First Name Last Name SIN Date of Birth | Net Income Janie Sims 527-000-483 1963-02-15 $5,000 Martha Sims 527-000-451 2004-03-31 $11,000 527-000-361 1999-07-20 $4.800 Mark Sims 527-000-222 1997-11-10 NIL All the children live with their parents. Martha is in high-school and Mary has mental health problems that prevent her from working on a full time basis. Mark attends university on a full time basis for 10 months of the year. His tuition fees are $11,000. As he has no income of his own, he has agreed to transfer all of his education related credits to his father. The family's 2019 medical expenses, all of which were paid by Mr. Sims, were as follows: | Month /Date Patient Description Amount Expense Feb. 2 Riley Optician Prescription glasses 2,500 Mar. 3 Janie Pharmacy Prescription drugs 2,000 Mar. 20 Janie Dr. Black Group Therapy 1.200 Jun. 20 Martha Dr. White Dental 1,800 Aug. 5 Mary Hearing aid Hearing Aids 3,000 clinic Sept.20 Mary Pharmacy Prescription drugs 6,300 Dec. 20 Mark Dr. Johnson Orthodontics 2,500 Other Information: 1. Employment income and all employment related benefits should be considered as being included in T4 (Box 14) for purposes of completing the return on Profile. Hint: example of employment related benefits to be included in box 14 of Riley's T4 in Profile would be an automobile benefit. 2. Mr. Sims is provided with an automobile by his employer. The automobile is leased at a rate of $600 per month, including applicable HST. This payment also includes a payment of $60 per month for insurance coverage. During 2019, the automobile is driven 57,000 kilometres, of which 42,000 were employment related. The automobile was used by Mr. Sims for 10 months during 2019. She was required to return the automobile to her employer's garage during the month that she did not use it. 3. Throughout their marriage, the Sims have always lived in rented premises. Seeing the current level of mortgage rates as presenting an opportunity to acquire a residence, they purchase a 4 bedroom bungalow in the same neighbourhood for $450,000 on April 1, 2019. On this date, his employer provides Mr. Sims with a $300,000 loan that will facilitate this acquisition. The loan requires payments of interest at a low rate of 1%. Assume that the prescribed rate is 5 percent throughout 2019. 4. During 2019, Mr. Sims receives several gifts from her employer: a) As is the case for all of her employer's senior staff, he receives a $400 gift certificate that can be used for merchandise at a local clothing store. b) In recognition of 10 years of continuous service, he receives an engraved wrist watch. The retail value of this watch is $1,200. c) At Christmas, all of the employees of her employer receive a gift basket containing gourmet food. The retail value of this basket is $300. 5. During 2019, Mr. Sims received options to purchase 1,200 shares of his employer's stock at a price of $37 per share. At the time the options were granted, the market price of the shares was $40 per share. During July, 2019, when the shares are trading at $45 per share, Mr. Sims exercises all of these options. He sells all of these shares on December 31, 2019 for $55 per share. 6. Mr. Sims is a member of the Financial Analysts Professional Association and paid $1,200 in dues during 2019. His employer doesn't require this membership but he wants to maintain it and pays the dues personally. 7. Mr. Sims earned $2,200 of interest on his bank's savings account during the year. Hint: a bank account is considered property and interest earned on that property is therefore considered property income which is part of total income