Ms. Athena Wisdom is preparing her 2021 tax return and having learned that you had taken the Taxation course at George Brown College, she has come to you for some assistance in computing her income from various sources, deductions, Federal Tax Credit and Federal Tax. Athena age 46 years old and Apollo Sunny age 51 have been companions for the last 4 years cohabiting in a conjugal relationship (common- law relationship). Athena has 2 children from her previous marriage, son Ares age 17, and daughter Nikki age 20. Athena has custody and both children live with them and are supported by both. You are provided with the following information: Ms. Wisdom is employed by Titan Enterprises Limited (TEL) a large Canadian public corporation as vice president of Operations. During 2021, Athena received a gross annual salary of 164,000 ($60,000 from Victoria BC office and $124,000 from Toronto office). Athenas employer withheld the following amounts from her 2021 remuneration: EI Premiums $ 890 CPP Contributions 3,166 RPP Contributions- 5,900 Group Term Life Insurance Premiums 980 United Way Donation 2,000 Payments for Personal use of Company Car 4,670 Income Tax Withheld (Fed.+Prov) 49,900 OTHER EMPLOYMENT INFORMATION: i) TEL paid the following amounts on behalf of Athena: Registered Pension Plan ( a matching contribution of) $ 5,900 Group Term Life Insurance ( a matching contribution of) $ 980 Group sickness/ Accident/Disability insurance Plan (100%) Sun Life $ 2,500 Private Health Plan Premiums (100%) $ 910 ii) During 2020, Athena pays dues to her professional association of $205. iii) On September 1, 2021, a bonus of $ 30,000 was accrued for Athena. Ms.Wisdom received $20 ,000 of this bonus on December 1, 2021, with the remainder to be paid on March17, 2022.TEL has a December 31st year end. iv) Athena incurred moving expenses, qualifying as allowable deduction for tax purposes, in the amount of $33,900. TEL reimbursed Athena in the amount of $ 33,900. v) TEL provides Athena with an automobile that the company acquired in 2021 at a cost of $72,000 (HST included). During 2021 Athena drove the automobile a total 18,600 kilometers, of which 13,600 kilometers were employment related. Operating costs totalled $3,800 , all of which were paid for by the company. The automobile was used by Candy for 3 months in 2021. The automobile was returned to TEL after the 3 month use. vi) Athena received options to buy 10,000 shares of her employers(TEL) common stock at a price of $5.00 per share on August 2, 2020. At this time the shares were trading at $5.00 per share. Athena exercised these options on May 12, 2021 , when the shares were trading at $6.00 per share. Ms. Athena, sold 1,000 of the 10,000 shares on December 16, 2021 for $8 per share. Athena did not own any other shares of TEL., other than the ones acquired August 2,2020. vii) Athena under her contract of employment is required: to carry on the duties of employment away from the employers place of business, to pay all expenses and was not in receipt of a reasonable allowance.. Athenas employer has signed a T2200 form certifying this requirement. Ms. Athena incurred the following employment related expenses during 2021 (All Reasonable): Meal $600 (while away municipality;>12hrs) + Accommodation &2,200 + Airline Tickets/Travel $1,800 + Entertainment $800 =Total Expenses $ 5,400. INVESTMENT INFORMATION viii) April 1, 2021, Athena took out a bank loan in the amount of $ 40,000 at 4% per annum. The 2021 interest paid on this loan was $1,066. She immediately invested the funds in shares of Canadian Controlled Private Corporation; shares in a Taxable Canadian (Public)corporations; shares in a Foreign Public Corporations The 2021 results for her investments are as follows: a) CCPC- as one of the shareholders in in her brothers CCPC( successful company) Bess, received a non-eligible dividend of $ 600. b) Taxable Canadian Public Companies received an eligible dividend of $ 800 from holdings in this public company. c) Foreign Public Company- Preferred Shares in 2021 Athena purchases 500 common shares of a US Public Company. During 2021 these common shares paid a dividend of $180 (Cdn funds) net of withholding tax . The US government withheld 10% - $20(Cdn funds.) ix) Ms Athena invested $10,000 in a GIC- (debt instrument) investment contract) on July1,2020. It has a 5% three year (mature on June 30, 2024), semi-annual compound interest. The terms of the instrument call for payment of interest to be paid at the maturity date of the instrument. Interest accruing on the GIC has been as follows: July 1,2010 to September 30,2020 $ 125 October 1,2019 to December 31,2020 $ 128 January 1,2021 to March 31,2021 $ 132 April 1,2021 to June 30,2021 $ 140 October 1,2020 to December 31,2020 $ 145 x) Athena, owns 1,000 shares of Gaia Ltd. The ACB is $23 per share ($23,000). On August 2, 2021, Athena sold all of these shares at $14.50 per share ($14,500). On August 15,2021, Ms. Wisdom acquires 600 of the same shares of Gaia Ltd. At a cost of $13.75 per share ($13,750). She continues to hold these shares for the remainder of 2021. xi) Ms. Athena makes frequent purchases of common shares of ARTEMIS Ltd. Her transactions during 2020 and 2021 are as follows: Type Of Number Cost (Proceeds) Date Transaction Of Shares Per Share Total February 23,2020 Purchase 200 $ 12.00 $ 2,400 May 12, 2020 Purchase 300 11.75 3,525 Aug.2, 2020 Purchase 450 13.50 6,075 Dec 7., 2020 Sale (350) (16.50) ( 5,775) June 15, 2021 Purchase 400 18.25 7,300 October 1, 2021 Sale ( 600) (20.75) (12,450) xii) As a result of the move from Vancouver to Toronto, Athena disposed of a number of her personal assets. The proceeds of disposition and the adjusted cost base of the various items are as follows: Adjusted Proceeds Of Cost Base Disposition Collector Car $24,000 $25,000 Marble Sculpture 600 5,000 Antique Furniture 21,000 8,000 Stamp Collection 31,000 27,000 xiii) Athena owns two rental properties : 54 Eros St, and 7 Eurus St. The following information pertains to these two rental properties: 54 Eros St. 7 Eurus St. Date obtained 2017 2018 Cost of Land $ 100,000 $ 130,000 Cost of building $ 200,000 $ 230,000 UCC Jan1/21; Class 1: 4% $ 188,160 $ 225,400 Rental revenue in 2021 $33,810 $ 26,007 Expenses: Mortgage Interest $ 9,700 $10,900 Property taxes $ 9,900 $ 8,500 Utilities $ 6,300 $ 6,900 Other expenses $ 2,110 $ 2,700 Total Expenses $ 28,010 $ 29,000 Net rental income before CCA $ 5,800 $ -2,993 The rental property 7 Eurus St. was sold November 1, 2021 for $ 410,000. A break- down of total sale is as follows: $160,000 for the land and $ 250,000 for building. Real estate commission on sale of property was $ 15,000. The term of the sale required the buyer to provide a down payment of $110,000 with the remaining balance of $ 300,000 to be paid over a five year period (5 year term) at 4% /annum interest (payable monthly-) amortized over 25 years (blended payments). Interest received in 2021 $ 933. Athena uses a reserve to defer as much of her gain as possible. xiv) Ms.Athena on January 5,2020 bought 1,000 common shares OLYMPUS Ltd. a Taxable Canadian Corporation [public company] for $40,000 ($40 x 1,000shares). The current ( 2021) Trading Value of the shares is $50,000 ($50/share x1,000). In addition, these shares provide an annual eligible dividend of $2.00 per share $2,000(1,000x2.00). January 1, 2021, Athena gifted 200 shares of her OLYMPUS Ltd. Common shares to each of the following : Apollo her common-law partner; Ares her 17year old son and Nikki her 20 year old daughter. Athena also sold 200 shares to her 60 year old sister Hera at cost ($40/share). Athena(the transferor) elected out of the rollover (not to have the rollover apply ) under s73(1)ITA [gifted no consideration] xv) Net Capital losses Carry forward from prior years Total $11,990 OTHER PERTINENT INFORMATION: xvi) As a result of a work related accident, Athena received Workers Compensation payment of $ 1,480 in 2021. xvii) Under the terms of separation agreement signed in September 2015, Athena received child support of $3,000 per month and $1,000 per month spousal support. Athena in 2021 received a total of $48,000. xviii) Ms Wisdom paid legal fees of $1,200 in 2021 to Appeal her 2020 Income Tax Assessment( she won). xix) During 2020, Ms Wisdom contributed $5,500 to her Tax Free Savings Account (TSFA) and $5,500 to TSFA account for Apollo. xx) Athena made a total RRSP contributions of $28,000 of which $ 23,000 is from March 1,2021 to December 31,2021 and a RRSP contribution of $5,000 in the first 60 days of 2021 (January 1/22- March 1,2022). Athena had $ 6,000 unused RRSP deduction limit room carried forward from prior years. Athenas 2020 income of $163,000 consisted of the following: Net employment income before deduction for RRP of $4,000 --- $141,350 Net Rental income after CCA deduction ---------------------------- $ 1,250 Spousal support received $ 12,000 Taxable Eligible dividends from Canadian Corporations ------- $ 8,280 Taxable Non- Eligible dividends from Canadian Corporation---- $ 4,600 Taxable Capital Gain ---------------------------------------------- $ 2,850 The pension adjustment reported by Bess employer of $ 10,800. xxi) During 2021, Athena paid for the following eligible medical expenses not covered by Health Plan: For herself, Apollo, and Ares $ 1,010 For Nikki 1,310 Total eligible medical expenses paid by Bess $ 2,400 xxiii) In addition, Athena Contributed to the following registered charities : Cancer Society - $3,000 Easter Seal $3,000 Sick Kids Hospital $1,000 xxiv) Information relating to, Apollos, Aress and Nikkis Income is as follows: Apollo: Athenas Common law partner age 51 years old . Shortly after the move to Toronto, Apollo set up a business that provides mail order party planning service for most Occasions. The particulars of GAAP Income is as follows: Apollos Party Planning Income Statement For the period April 1, 2021 - December 31, 2021. TOTAL REVENUE $151,200 Costs associated with these sales are as follows: Wages-part-time workers $ 53,000 Packaging Materials 13,400 Shipping Costs 25,600 Miscellaneous Office Supplies 4,560 Telephone Internet (Total Charge For The Period) 1,000 Printing Of Posters And Brochures Distributed 3,440 Entertainment Expenses 24,800 Other Expenses 10,800 Depreciable assets purchased during the year (Class 8:20%) Office Furniture cost 20,000 Acct. amortization/5 4,000 (Class 50:55%) Computer(cost $ 8,000) Accounting amortization/4 2,000 Class 12:100% -Computer software (cost $2,000) Accounting amort/1. 2,000 Work space in home 100% Total cost that include : 16,500 (mortgage interest, utilities, maintenance, property taxes, etc (Note: work space in home involves 20 percent of the total floor space in the residence. TOTAL EXPENSES $161,100 Sams Net Accounting Business Income ( $ 9,900) [Note: This is Apollos only income] Ares: Athenas son age 17years old. Ares is in his final year of high school (grade12).He worked occasionally at McDonalds on part-time basis and earned employment income of $ 3,450. Nikki: Athenas daughter age 20 years old . Nikki is a full time university student. She is in her 3rd year at Western University. Form T2202 Tuition and Enrolment states tuition fee paid (by Athena) in 2021 ,( January 2021 to April 2021 $3,400 and September 2021-December 2021 $3,500) of $6,900. Nikki is willing to transfer any unused part of her tuition tax credit to Athena. Nikki was a successful applicant for a scholarship and was awarded $3,000 to assist her with tuition costs . During the summer of 2021, Nikki had employment (net)income of $13,000 which she earned working as a waitress at a fine dining establishment. REQUIRED: Ms. Athina Wisdom has asked you to assist him in calculating his Part I Income Tax under Division B, Division C and Division E of the Act (use appropriate ordering rules in section 3, 111.1 and 118.92). [Net employment income; Income from property; Other income; Taxable capital gains less allowable capital losses; Other Deductions: Net Income For Tax Purposes; Taxable Income; Federal Tax Payable.] Show calculations where possible. Ignore minimum tax and provincial tax. Please use the attached schedules I, II, III and show all of the calculations