. Mary a tax payer. Mary contacted you to propose a payment arrangement for her personal income tax account in the amount of $4500.00. She lives in Saint Boniface, Winnipeg and you are located in Nova Scotia. During the phone call she proposed to pay $150/month. You asked her to provide you with details of her financial situation and she agreed to fax some information to you overnight; once youve received and reviewed the information, you tell her you will call her back to discuss her payment proposal.

This information is on your mail the following day.

Income of Mary Taxpayer $4500.00

Mary Taxpayers Expenses:

Rent $500.00

Food $900.00

Electricity $300.00

Phone $100.00

Insurance (Life & Car) $200.00

RRSP Contribution $200.00

Hockey Fees $200.00

Car Loan $420.00

Spouse Car Loan $320.00

Visa $400.00

Vehicle Expense (2cars) $600.00

Entertainment $400.00

Total Expenses $4540.00

Question 2(A):

Is Mary Taxpayers proposed payment arrangement acceptable?

Question 2(B):

Please provide the rationale, including all resources utilized, to reach your decision in Question 2(A).