Memphis is 51years old and is married to Raine who is 49 years old. They have two children, Finny and Stella. Finny is 12 years old and has 2022 DIV B of $6,420 from working at the local farm. Stella is 19 years old and enrolled in a full-time program at university for 8 months of the year and did not earn any income. Memphis pays Stella's $10,200 tuition and $2,200 for textbooks and supplies. Stella has agreed to transfer the maximum tuition credit to Memphis. Raines DIV B for 2022 is $5,650. The family lives in a 2^nd floor condo in a mixed-use building (residential and commercial).

2022 Employment Income:

Memphis is employed by a public company with a base salary of $143,000 and earned $18,500 in commissions. Memphis has a company car that was purchased in 2020 for $40,000. The car was available to Memphis for 10 months and was driven a total of 42,000 kilometers; 15,000 kilometers were for personal use and 27,000 for employment purposes. The company paid the cars $7,560 operating costs for the year.

The employer withheld the following amounts from Memphiss pay, reported on the T4:

CPP Contributions $3,500

EI Premiums 953

RPP Contributions* 4,200

Union Dues 625

Payments for Personal Use of a Company Car 1,800

Income Tax 30,000

The employer makes a matching contribution to Memphiss RPP of $4,200.

Memphis was granted an option to purchase 2,000 of the employers shares for $25 a share. When the option was granted, the shares traded for $27 each. In March, Memphis exercises the option, purchasing 2000 shares when the shares are trading for $32 a share. In November Memphis sells 1,000 shares for $32 a share. The remaining 1,000 shares are in Memphiss investment portfolio at year end and are trading for $20 a share.

The company gave Memphis a $600 watch to recognize 10 years of employment. All of the company's employees receive a $300 gift certificate for online purchases at Shopify in December.

Memphis receives a flat rate travel allowance of $600 every month to cover the cost of hotels and meals while traveling for work. Memphis spends the following amounts:

Hotels $4,200

Meals 2,900

To encourage life-long learning the company reimburses tuition paid by employees for post-secondary courses. Memphis was reimbursed $3,400 for two courses; $2,800 for an 80 hour course in negotiating skills that the company encouraged Memphis to take, and $600 for a weekend music appreciation course

Memphiss 2022 Business Income:

On January 1, 2022, Memphis started a consulting business. Memphis rents the ground floor of the building the family lives in (commercial space) for the business location. The lease agreement is a 3-year term with no option for renewal. The rent is $750 a month. Memphis made $18,000 in leasehold improvements to this space, purchased office furniture for $16,300, a computer for $1,230 and application software for $723.

Memphis invoiced clients $63,450. However, as of December 31 Memphis had not yet sent out invoices for $5,055 worth of work that was completed. This amount will become accounts receivable. Memphis paid the following expenses:

Part Time employees $6,340

Office Supplies 623

Web Page

(A simple web page for informational purposes only) 240

Cell Phone Plan (for business use only) 462

Meals and entertainment with clients 4,340

2022 Investment Information:

Over the last five years, Memphis bought and sold shares of S Ltd. a Canadian corporation and in 2022 receives $5,600 non-eligible dividends.

Transactions involving S Ltd. shares over the past 5 years are:

January, 2018 Purchase 1,250 @ $24

November, 2020 Purchase 860 @ 29

June, 2022 Sale 1,750 @ 31

2022 Family Medical Costs:

Memphis pays the following medical expenses:

Memphis $ 3,200

Raine*** 7,800

Finny 2,450

Stella 7,235

Total $20,685

***$4,800 was for a hair transplant and $3,000 was for plastic surgery on Raines nose after a serious accident.

2022 Charitable Donations:

Memphis donated $2,150 to a registered charity and $450 to a registered federal political party.

Required: Calculate Memphiss 2022 DIV B, DIV C and Federal income tax. Show all calculations for full marks.

Note: This is a group assignment. Hand in one hard copy for your group on October 13 before 8:10 am. Late assignments will be penalized according to the late assignment policy documented in the course outline.

Your solution can be hand written. You may use the CCA and Part 1 worksheets provided in DC Connect. It is your groups option whether to use the T1 General. If you do use the T1 General, ensure you provide documentation to show how you arrived at each number on each line of the T1 General.