Ms. Smith formally separated from her husband late in 2019. Custody of her three children, ages 14, 7, and 5, was granted to her as part of an agreement (properly referenced to the Income Tax Act, as necessary) that was worked out with her husband in Family Court. The oldest child, Real, is 19 years old and, therefore, not part of the agreement, although he lives with her and the other children. To make a fresh start, on March 15, 2020, she resigned from her position in Toronto, Ontario, where she had been employed by the same employer since November 2004. She took a position in Niagara Falls, Ontario, about 128km away. Ms. Smith had always prepared her own tax return in previous years, but because of the extraordinary events of 2019 and 2020, she is having some difficulty with the preparation of her return. She has come to you for help, having already correctly calculated her income under Subdivisions a, b, and c of Division B, as follows: 2019 2020 Subdivision a Salary (from both employers in 2020) $86,500 $95,000 Taxable group term life insurance premium (paid by both employers in 2020) 450 495 Taxable car benefit 4,350 5,000 Deductible professional fees (350) (400) Deductible RPP contributions (defined benefit plans) (4,800) (5,500) Net Subdivision a income $86,150 $94,595 Subdivision b Business income (loss) from partnership share $(1,000) $ 6,000 Property income: Net rental income (loss) from apartment building (loss is before CCA) 10,050 (2,000) Grossed-up dividends from active business income of a CCPC 1,100 1,200 Savings Bond interest 3,300 3,500 Deductible interest on loan to buy shares (200) (200) Net Subdivision b income $13,250 $ 8,500 Subdivision c Taxable capital gain on sale of shares $ 6,200 $ 6,500 2 Taxable capital gain on sale of cottage 8,000 Taxable capital gain (loss) on sale of painting 1,200 Net Subdivision c income $ 6,200 $15,700 Total income from above sources $105,600 $118,795 Additional Information for 2020: (1) She made a lump-sum direct transfer of $23,000 to her RRSP out of the RPP of her former employer who had made vested contributions since January 1, 2007. (2) During 2020, she received a retiring allowance of $63,000 for long service from her previous employer. (3) During 2020, she made the following selected expenditures: (a) contribution to her RRSP in respect of 2020, consisting of $48,000 in January 2020 and another $14,000 in October 2020. Her employer reported a pension adjustment (PA) of $9,500 for 2019. From prior years Ms. Smith had carryforward room of $40,000 which she has not used up yet. (b) legal fees for representation in Family Court $2,600 for appealing an income tax assessment which she lost 900 $3,500 (c) care for her children food and clothing $6,500 babysitter for half days during 30 weeks of school term ($110 per week) 3,300 babysitter for full days during 15 weeks of summer and other vacations ($105 per week) 1,575 overnight summer camp for 5-year-old child for four weeks 1,000 $12,375 (d) move to NF unsuccessful trip to find accommodation car expenses $ 50 hotel for two nights ($150 per night) 300 meals for three days ($30 per day) 90 long distance calls to realtor to find accommodation 35 $ 475 move with family cancellation of lease on Toronto apartment $2550 hotel for two nights near NF after movers packed and while household effects in transit 300 meals for two days during packing and in transit 200 car expenses 25 transportation, packing and unpacking of household effects 3,195 $6,270 (e) maintenance payment for husband by virtue of agreement made pursuant to a court order 3 total of monthly payments for his maintenance $4,800 total of monthly payments made directly to his apartment landlord 3,600 $8,400 (4) Ms. Smith had net capital losses of $4,200 in 1999 which were available for carryforward. (5) Ms. Smith had the following amounts withheld from her salary in 2020: Canada Pension Plan $2,898 Employment Insurance 856 $3,754 (6) Ms. Smiths oldest child, Real, attends the University of Waterloo and paid tuition of $4,000 for eight months of full-time attendance during 2020. Real earned gross employment income of $12,500 during the summer. No amounts were withheld from his pay. Ms. Smiths other children do not have any income. (7) Ms. Smith made total contributions to registered charities of $700. Required: Showing all calculations, whether or not necessary to the final answer, calculate the following:

(A) Subdivision d inclusions and Subdivision e deductions for 2020, noting briefly why any items were not used in your calculations (consider in these notes the amount of any RRSP over-contribution, its consequences and how it should be dealt with) (70%) (taxable income for 2020 (4%)

(C) federal taxes payable for 2020 (26%).