Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mr. Donald James is a very successful executive with a Canadian public company. During 2021, he had net and taxable income of $96,000, all

Mr. Donald James is a very successful executive with a Canadian public company During 2021, he had net and taxable income of 

Mr. Donald James is a very successful executive with a Canadian public company. During 2021, he had net and taxable income of $96,000, all of which was employment income. The following independent Cases make assumptions with respect to Donald's marital status and number of dependants, as well as provides other information that is relevant to the determination of his 2021 Federal income tax payable. In all cases, his employer withholds the required El premiums and CPP contributions. Assume that part of the CPP contribution of $290 has been properly considered in the determination of net and taxable income. Case A - Donald is married to Sandra James. Sandra has net income of $5,785. Donald and Sandra have two children who are both in good health, Jane is 10 years old and Garret is 8 years old. Neither child has any net income. The family's eligible medical expenses were as follows: Donald Sandra Jane Garret Total $ 800 1,200 4.600 3.700 $10.300 Case B- Donald has never been married and has no dependants. He is being treated by a psychologist for post traumatic stress disorder, but it is not severe enough to obtain a doctor's certificate for the disability tax credit. During the year he won $100,000 in the provincial lottery. He donates the entire amount to Planned Parenthood, a registered Canadian charity. For 2021, he claims only $45,000 of the total donation Donald also makes contributions to a federal political party in the amount of $1,200. Required: In each Case, calculate Donald's minimum 2021 Federal income tax payable. Indicate any carry forwards available to him and his dependants and the carry forward provisions. Ignore any tax amounts that Donald might have had withheld or that might have been paid by instalments

Step by Step Solution

3.55 Rating (155 Votes )

There are 3 Steps involved in it

Step: 1

Question Federal income tax is due from Mr Donald James before credits 96000 is the net salary incom... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson

6th edition

978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163

More Books

Students also viewed these Law questions

Question

We are interviewing quite a few people, why should we hire you?

Answered: 1 week ago

Question

/

Answered: 1 week ago

Question

Most preferred shares are cumulative. Explain what this means.

Answered: 1 week ago

Question

A zero-coupon bond pays no interest. Explain.

Answered: 1 week ago