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Mrs. Rhonda Sorenson is 44 years old and lives in Waterloo, Ontario. She is married to Martin Sorenson and they have one child. Martin is

Mrs. Rhonda Sorenson is 44 years old and lives in Waterloo, Ontario. She is married to Martin Sorenson and they have one child. Martin is currently unemployed and his only 2020 income is $8,400 in Employment Insurance benefits. Their 19 year old daughter, Cissy, is in full tim, attendance at the University Of Waterloo for eight months during 2020. Ms. Sorenson pays Cissy's 2020 tuition of $7,800 and, because Cissy's 2020 income is only $6,500, she agrees to transfer to her mother the maximum tuition credit. Other Information: 1 Mrs. Sorenson is employed by a large publicly traded company, earning a gross salary of $67,000 in 2020. In addition, she received commissions of $3,150. During 2020, her employer withheld the following amounts from her salary:

Rhonda's employer makes a matching contribution of $2,750 to her RPP, as well as a matching

contribution of $1,000 to her disability insurance plan. The plan provides periodic benefits that

compensate for lost employment income. Mrs. Sorenson began contributing to the disability

insurance plan in 2019. Her contribution in that year was $900.

Mrs. Sorenson's employer provides her with a car that was purchased in 2019 for $45,200. The

car was used by Mrs. Sorenson throughout the year, except for a period of one month during

which she was hospitalized for a nervous disorder. During this one month period, she was

required to return the car to the company garage.

During 2020, the car was driven a total of 62,000 kilometres, of which 51,000 were employment

related. Her employer paid all of the operating costs which totaled $9,300 for 2020.

3.

Her employer reimburses 100 percent of her airline tickets and meals, but only a portion of her

lodging costs. As a result, she has unreimbursed employment related travel costs. For 2020,

these totaled $4,200.

She is required to maintain an office in her home without reimbursement from her employer.

Her employer provides the required T2200 form. Based on the portion of her house that is used

for this office, the related costs are as follows:

Utilities And Maintenance

$ 850

Insurance

725

Property Taxes

1,340

Mortgage Interest

960

4.

During her one month hospitalization, Mrs. Sorenson received disability insurance benefits of

$4,800.

5.

During 2020, Mrs. Sorenson earned property income of $5,270, of

which she will claim a dividend tax credit of $311.

$4.800.

5.

During 2020, Mrs. Sorenson earned property income of $5,270, of

which she will claim a dividend tax credit of $311.

6.

On May 1, 2020 Mrs. Sorenson sold a piece of land earning a taxable

capital gain of $8,420.

7. The family medical expenses were as follows:

Rhonda

Martin

Cissy

Total

$ 1,200

2,750

8,395

$12.345

8. In 2019. Mrs. Sorenson's had Net Income For Tax Purposes of $57,525. This was made up of

net employment income of $55,000 (after the deduction of $2,400 of RPP contributions), a net

business loss of $8,600, interest income of $2,000, grossed up dividends of $3,525, and

royalties on a song she wrote eight years ago of $5,600.

9. At the end of 2019, Mrs. Srenson's Unused RRSP Deduction Room was $7,400 and she had

no undeducted RRSP contributions. Her employer reported that she had a 2019 Pension

Adjustment of $5,200.

Required: Prepare a brief memo to your client outlining the following:

Calculate your client's maximum deductible RRSP contribution for 2020

Prepare a second brief memo to your client outlining the following:

2. Your client needs the minimum Federal Tax Payable for the 2020 year. Summarize your findings, include all calculations for her review.

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