Mr. Jack Leonard, 66 years old, has asked you to assist him in preparing his 2019 tax return.To this end, he provides you with the following information.

Mr. Leonard's employer is a large, publicly traded corporation.During 2019, Mr. Leonard received a gross annual salary of $158,000, living accommodations having a fair market value of $1,000 per month, and an award of $2,100 in recognition of outstanding job performance.Awards for performance are paid instead of investing in employee benefits, so there is no pension plan and Mr. Leonard's 2019 Pension Adjustment amount is nil.His employer withheld the maximum for CPP contributions and EI premiums.

On August 1, 2019, his employer granted him an option to purchase 100 of its shares at a price of $7 per share.The market price of the shares at that time was $7 per share.On December 1, 2019, Mr. Leonard exercised his options to receive 100 shares of the company when the market price was $23 per share.He sold all of his shares received from the exercise in Janauray 2020 for $30 per share.

Mr. Leonard provides the following list of receipts and disbursements for the 2019 taxation year:

Receipts

Director's Fees$ 1,300

Royalties On Patent Purchased In 201624,070

Eligible dividend from Royal Bank of Canada Corp3,000

Bond Interest430

Disbursements

RRSP Contribution On July 6, 2019 (sufficient RRSP room) $3,600

Rent Paid To Employer For Living Accommodation1,200

Financial Support Of His Aunt7,100

You ascertain that his aunt is physically infirm, is wholly dependent upon Jack Leonard for support, had income of $3,000 during the year, and lives in Florida for health reasons.

Mr. Leonard provides you with the following information on his dispositions of property during the year:

ProceedsCost

Diamond Ring$10,200$950

Painting1,1001,800

Pistol Collection2,0001,400

Shares of Nortel Corp2,5006,000

On further enquiry, you learn the following:

• Leonard is married to Debbie, 50 years old, and has one 19 year old son, Jason.Mr. Leonard's wife, Debbie, had income of $4,990 during the year.
• His son, Jason, lives at home and was employed during twelve weeks of the summer at a golf course as a greens keeper, at a salary of $275 per week (plus tips from golfers of $11,000 in total for the time he worked there).In September, he left his employment to commence full time studies at university.Tuition fees paid for the 2019 calendar year amounted to $3,200, and were paid by Mr. Leonard.He will transfer any unused credits to his father.
• Leonard has two additional children who live with their mother, Ms. Dolly Holt in Burnaby, British Columbia.The children are Megan Holt, aged 15 and Andrew Holt, aged 16. Neither child has any income during 2019.While Mr. Leonard and Ms. Holt were never married, Mr. Leonard acknowledges that he is the father of both children.Although Jack has provided limited financial aid, the children are not dependent on Jack for support. Jack's wife, Debbie, is unaware of the relationship between Mr. Leonard and Ms. Holt.
• Leonard's mother, Eunice, was born on April 10, 1945 and his father, Earl, was born on November 16, 1944.They both live with Jack and his wife.While his father is still physically active, his mother is blind.Eunice Leonard had income of $9,500 for the year, while Earl Leonard had income of $7,500.
• Leonard made charitable donations of $1,500 during 2019 to the Red Cross of Canada. During 2019, Debbie purchased $1,000 of the BC Children's Hospital Lottery.She did not win anything.Both organizations are registered Canadian charities.
• Leonard's 2018 Earned Income for RRSP purposes is $30,000.
• In addition, Mr. Leonard has an allowable business investment loss carryforward of $5,000, and net capital loss of $20,000.

Required:For 2019, compute the following amounts for Mr. Leonard in accordance with the provisions of theIncome Tax Act.

1. Minimum net employment income. (3 marks)
2. Minimum income from property and business. (2 marks)
3. Taxable capital gains less allowable capital losses. (2 marks)
4. Other Income and Deductions (1 mark)
5. Minimum Net Income For Tax Purposes. Indicate any available loss carry over amounts. (1 mark)
6. Minimum Taxable Income. (1 mark)
7. Minimum Federal Tax Payable. (5 marks)