jake barter donated $100,000 in cash to Canadian registered charity. his net income and taxable income for the year is $120,000. calculate jake's maximum federal donation tax credit?

In Canada, the federal donation tax credit is calculated as follows: For the first $200 donated, the credit is 15%. For the portion of the donation above $200, the credit is 29%. Since Jake donated $100,000, the credit will be calculated as follows: The first $200 is credited at 15% = $30 The remaining $99,800 is credited at 29% = $28,922 Therefore, Jake's total federal donation tax credit is $30 + $28,922 = $28,952. Since the credit is non-refundable, it can only be used to reduce Jake's federal tax owing for the year.