Kirk is 32 years old. Kirk earned $112,000 in 2020 while employed as a financial analyst. The combined CPP and EI deduction during 2020 totaled $3,754. Of this amount, $166 was the CPP enhanced contribution. The following information was also provided pertaining to the 2020 taxation year:

a) Kirk enrolled in part-time studies at the local university, paying tuition fees of $1,500. b) Kirk donated $2,000 to a registered charity for tax purposes, and $800 to a federal political party. c) During the year, a total of $4,500 was spent on eyeglasses, dental care, and prescriptions, and none of this amount was reimbursed. d) Kirk's spouse did not work during 2020 while attending full-time post-secondary classes which cost $8,000 in tuition. The maximum allowed amount was transferred to Kirk for 2020 tax purposes. Kirk's spouse had no other income during the year. e) Kirk has a $2,000 non-capital loss from 2019. f) The couple does not have any children.

Required: A. Calculate Kirk's taxable income for 2020. B. Calculate Kirk's federal tax liability for 2020.

Grading is on requirement B) only. To get from Net Income to Taxable Income, subtract the Non-Capital Loss Carryover amount in item e) and subtract CPP Enhanced Contributions from Net Income.

Note: Federal Tax Liability = Taxes Payable after tax credits; they are the same thing.