Martin Dorne is $53$ years old and employed by a large public construction company with gross revenues of $$115$

million. His annual salary is $$98,500,$ none of which is commissions. The company was very successful in $2023$

and Martin has been provided with a $$15,000$ bonus. that will be paid in equal amounts $($$$3,000)$ over the five

year period $2023$ through $2027.$

Martin's employer withheld maximum EI premiums and CPP contributions, along with $$18,000$ in federal

income tax. Other amounts withheld by his employer are as follows:

Martin's common$-$law partner is Brian Lassiter. Brian is $48$ years old and is legally blind. Brian has net income

of $$9,400$ in $2023$ all of which is from investments.

Martin and Brian adopted three orphaned brothers $8$ years ago. Information on the brothers is as follows:

David is $15$ years old, in good health, and has net income from part time employment of $$10,500.$

Devon is $20$ years old and suffers from a physical infirmity that prevent him from working on a full time basis.

He lives with Martin and Brian and has net income from part time employment of $$5,150.$

Derek is $22$ years old and attends university on a full time basis for $8$ months of the year. Martin pays his

tuition fees of $$14,300,$ along with textbook costs of $$1,200.$ He lives with Martin and Brian and is in good

health. He has net income and taxable income of $$14,000$ all of which is from a business he carries on as a sole

proprietor. Assume that his net income is determined after the appropriate CPP deduction.

Other Information:

In $2023,$ Martin spent $$12,300$ on meals and entertainment with clients of his employer in the local area. His

employer reimbursed $$7,300$ of these expenses all of which relate to the clients. The remaining $$5,000$

represents Martin's own meal expenses.

In $2023,$ Martin makes his regular annual donation of $$2,000$ to a registered charity,

The family's $2023$ medical expenses, all of which were paid by Martin, were as follows:

Martin was granted options to purchase $500$ shares of his employer at a price of $$45$ a share in March $2021.$

At the time the options were granted, the market price of the shares was $$50$ a share. In July, $2023,$ when the

shares are trading at $$70$ a share, Martin exercises all of the options. He continues to own the shares on

December $31,2023.$As interest rates continue to be very favourable, Martin and Brian purchase a home near the rented residence

that they have lived in for the last $15$ years. The cost of the new home is $$680,000$ and, to assist with the

purchase, Martin's employer provides a $$280,000$ interest free loan. The loan was received on July $1,2023$ and

will have to be repaid by July $1,2027.$ Assume the prescribed interest rate on employee loans is $1\%$ throughout

all of $2023.$

Martin is provided with an automobile by his employer. The automobile was purchased for $$45,200,$ which

includes HST of $13\%.$ In $2023,$ the automobile is driven $48,000$ kilometers, of which $37,000$ were for

employment purposes and $11,000$ for personal use. The automobile is available to Martin for $11$ months of

In $2023,$ Martin receives several gifts from his employer:

As is the case for all of the company's employees, Martin receives a $$250$ gift certificate on his birthday that

can be used for merchandise at a local shopping mall. The gift certificate cannot be converted to cash.

In recognition of his $10$ years of service, Martin receives an engraved wrist watch. The retail value of this

watch is $$800.$ This is the first long service gift he has received.

At Christmas, all of the company's employees receive a gift box of vintage wines. The retail value of these

wines is $$400.$

Required:

A$.$ Determine Martin's $2023$ employment income and net income.

B$.$ Determine Martin's $2023$ taxable income.

C$.$ Based on your answer in Part B$,$ determine Martin's $2023$ Federal income tax payable or refund.