Margarita Dalvi is a financial analyst employed by a large public company. Her 2021 salary is

$143,000, none of which is commission income.

Her employer does not require that she pay

any travel or other expenses. In addition, she was awarded an incentive bonus of $34,500. Two-thirds of this bonus was paid during 2021, with the balance due in September 2022.

Ms. Dalvi's employer withheld the following

amounts from her earnings:

El premiums.

$890

CP contributions.

$3166

PP contributions.

$6400

Federal income taxes.

$29000

Contributions to United Way, a Canadian

registered charity.

$4000

Professional association dues $1200

Ms. Dalvi is 55 years old and married to Jonathan

Dalvi, who has been legally blind since an auto-

mobile accident that occurred several years ago

Jonathan turned 65 years old on December 25,

2021. He has 2021 income from investments of

$7,200. The couple has three children:

Martha is 15 years old. She has 2021 net income

from various part-time jobs of $11,000.

Mary is 19 years old and has mental health

problems that prevent her from working on

a full-time basis. She lives with her mother and

father and has 2021 income from part-

time jobs of $4 800.

Mark is 21 years old and attends university on a

full-time basis for 10 months of the year.

His tuition fees were $9,400 and paid for by Ms.

Dalvi. As he has no income of his own he has agreed to transfer the maximum tuition

amount to his mother.

The family's 2021 medical expenses, all of which

were paid by Ms. Dalvi, were as follows:

Ms. Dalvi and her husband. $6200

Martha. $1800

Mary. $11300

Mark. $2500

Other Information:

1. Ms. Dalvi is provided with an automobile by her

employer. The automobile is leased at a rate of $728 per month, including applicable HST.

This payment also includes a payment of $50 per month for insurance coverage. During 2021, the automobile is driven 57,000 kilometres, of which 42,000 were employment related and 15,000 were for personal use. The automobile was used by Ms. Dalvi for 11 months during 2021. She was required to return the automobile to her employer's garage during the month she did not use it.

2. During 2021, Ms. Dalvi spent $14,800 on employment-related meats and entertainment

with clients at local establishments. Her employer reimbursed $9,500 of these costs.

3. Throughout their marriage, the Dalvis have always lived in rented premises. Seeing the

current level of mortgage rates as presenting an opportunity to acquire a residence, they

purchase a four-bedroom bungalow in the same neighbourhood for $422,000 on July 1,

2021. On this date, her employer provides Ms. Dalvi with a $250,000 interest-free loan that

will facilitate this acquisition. However, the balance must be paid on July 1, 2026 Assume

that the prescribed rate is 1% throughout 2021.

4. During 2021, Ms. Dalvi receives several gifts from her employer:

As is the case for all of her employer's senior staff, she receives a $400 gift certifi-

cate that can be used for merchandise at a local clothing store.

In recognition of 10 years of continuous service, she receives an engraved wrist-

watch. The retail value of this watch is $1,200.

At Christmas all of the employees of her employer receive a gift basket containing

gourmet food items. The retail value of this basket is $300.

5. Ms. Dalvi received options to purchase 1,200 shares of her employer's stock at a price of

$37 per share two years ago. At the time the options were granted, the market price of the

shares was $40 per share. During July 2021, when the shares are trading at $45 per share,

Ms. Dalvi exercises all of these options. She is still holding these shares at the end of the year.

Required:

A. Determine Ms. Dalvi's minimum net income for 2021.

B. Determine Ms. Dalvi's minimum taxable income for 2021.

C. Based on your answer in Part B, determine Ms. Dalvi's federal income tax payable and

amount owing (refund) for 2021.