Josephine Schmoe is a young woman who landed her first job in early 2020. She was immensely proud of her new independence and the $50,000 that she earned in 2020 has allowed her to buy a caron credit and to move out into an apartment. But with it now being early 2021, she will need to prepare her personal income tax returns for submission to the Canadian Revenue Agency. Each student will need to review the attachment to identify the Province that Josephine resides in for the purposes of their response to the questions being posed below.

1. Please calculate her Provincial and her Federal income taxes based on her gross earnings($50,000)assuming the 2020 Federal and Provincial tax brackets without any consideration for personal deductions or credits. All details and assumptions for the calculations must be clearly listed.

2.Please calculate her Provincial and her Federal income taxes based on her gross earnings($50,000)assuming the 2020 Federal and Provincial tax brackets and the 2020 basic personal deduction that the federal government and the Province that you are assigned has set. All details and assumptions for the calculations must be clearly listed.

3.Please calculate her Provincial and her Federal income taxes based on her gross earnings($50,000)assuming the 2020 Federal and Provincial tax brackets and only a tax credit of $3,000. All details and assumptions for the calculations must be clearly listed.

4.Please identify whether the 2020 basic personal deduction or the $3,000 tax credit results in a larger reduction in both Federal and Provincial personal income taxes and what the difference in personal income taxes is between the deduction and the credit.

Using the Canadian federal tax brackets as the federal income tax and Nova Scotia provincial tax brackets as the provincial tax income as calculation. All assumptions for the calculation must be shown for all four situations and calculations.