1. Joan Smith has Taxable Income of $37,500. For the current year her federal tax rate is 15 percent, while the corresponding provincial rate is 8.2 percent. Determine Ms. Smith's combined federal and provincial tax payable, before consideration of any available credits against Tax Payable.
2. Samantha Taylor has Taxable Income for the current year of $625,000, of which $216,000 is spent on goods and services that are subject to Harmonized Sales Tax (HST) at a rate of 13 percent. Her sister, Martha Taylor, is a part-time student living in the same province and has Taxable Income of $12,000. During the current year, as a result of using some of her savings, she spends $21,400 on goods and services that are all subject to HST. Determine the effective HST rate as a percentage of the income of the two sisters.
3. Mary Sothor is the Canadian ambassador to Tanzania. She was a resident of Canada immediately prior to her appointment as ambassador. Living with her in Tanzania's capital city are her husband and two children. Her husband was born in Canada and was a Canadian resident at the time of their marriage. He is exempt from Tanzanian taxation because he is the spouse of a foreign diplomat. Her 25 year old son was born in Canada and works for a Tanzanian company. His income exceeds $30,000 annually. Her 16 year old son was born in Kenya and is a full time student with no income of his own. Which of these individuals would be considered Canadian residents for tax purposes? Explain your conclusions.

4.On January 1, 2020, Mr. Packard receives a $135,000 loan from his employer to assist him in purchasing a home. The loan requires annual interest at a rate of 3.1 percent, which he pays on December 31, 2020. Assume that the relevant prescribed rate is 5 percent during the first quarter of 2020, 6 percent during the second quarter, and 4 percent during the remainder of the year. What is the amount of Mr. Packard's taxable benefit on this loan for the year?

5.John Baxter is a highly valued employee of Stern Inc. His marginal tax rate is 46 percent and he would like to acquire a vacation property. To assist with this purchase, he has asked the management of Stern for a $350,000 interest free loan. At this time the mortgage rate for vacation properties is 4.5 percent and the prescribed rate is 2 percent. Stern is subject to a marginal tax rate of 26 percent and has alternative investment opportunities that earn 7 percent before taxes. Should Stern Inc. grant the loan or, alternatively, provide sufficient salary to carry an equivalent loan from a commercial lender? Explain your conclusion.

6.Mr. John Savage has been employed for many years by a Canadian public company. Several years ago, Mr. Savage was granted options to acquire 4,000 shares of his employer's stock for $54 per share. At this time, the shares have a fair market value of $50 per share. On July 15, 2019, Mr. Savage exercises all of these options. At this time, the fair market value of the shares is $82 per share. In February, 2020, he sells all of the shares for $97 per share. Calculate the effect of the transactions that took place during 2019 and 2020 on Mr. Savage's Net Income For Tax Purposes and Taxable Income. Where relevant, identify these effects separately.