Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mr. Martin Bowles is 63 years old and is employed by, Dominion Brass, a large public company. During 2020, his Net Income and Taxable Income

Mr. Martin Bowles is 63 years old and is employed by, Dominion Brass, a large public company.

During 2020, his Net Income and Taxable Income was correctly calculated as $139,500.

Taxable income includes qualifying pension income from a former employer in the amount of $5,000.

His employer withheld the following amounts from his salary during 2020:

EI Premiums 858

CPP Contributions 2,594

Mr. Bowles is married and has two children:

Sally, Martins spouse, has 2020 income of $3,450.

Marie is 14 years old and has income of $2,300. All of this income resulted from the investment of rewards that she has received for science projects.

Ellen is 19 years old and attends university on a full-time basis for 8 months during 2020. Martin pays her tuition costs of $9,800, as well as the cost of textbooks and supplies which costs $1,500. As Ellen has net income of $12,809, she has agreed to transfer all of her education related tax credits to Martin.

The familys 2020 medical expenses, all paid for by Mr. Bowles, are as follows:

Martin $ 2,500

Sally 1,850

Marie 1,600

Ellen 6,540

Total $12,490

During 2020, Mr. Bowles makes donations to registered charities of $1,400.

Required: Calculate Mr. Bowles minimum 2020 Federal Tax Payable. Show all of your calculations

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Tips For The New Auditor

Authors: Marty Sturino

1st Edition

1733097813, 978-1733097819

More Books

Students also viewed these Accounting questions