Ms.Lorraine Jackson is a very successful salesperson for a large public ally traded company for 2020 her base salary is $250,000. In addition she received commissions totalling $12,000. For 2020 she also received a bonus of $32,000. One half of which was paid during 2020, with the remainder due on January 31st 2021.

During 2020 her employer withholds the following amounts from her salary :

Registered Pension Plan Contributions $7500

EI Premiums $856

CPP Contributions $2898

Contributions to the local united way $1200

Life insurance premiums (Employer makes matching contributions) $460

Ms. Jackson is divorced and has custody of her 12 year old son, and 10 year old daughter both of whom live with her. Her daughter who is legally blind has no income of her own during 2020, her son has a summer job employment income of $2350.

Other information:

1. Ms.Jacksons employer provide her with an automobile that has a cost of $47,460. Including applicable HST. During 2020 the automobile is drive 53,000 KM of which 48,000 were from employment related activities. Ms. Jackson pays all of the operating costs for her car. For 2020 these totalled $7950 with no reimbursement from her employer, the automobile was used by Ms.Jackson throughout 2020.
2. Because old the high level of her salary, Ms.Jackson is required to pay her own advertising and travel costs, in addition to the operating cost of her vehicle she paid for the following employment related costs:

Meals while travelling $4500

Hotels $9000

Advertising $11,000

Entertainment $5000

Total $29,500

3. Ms.Jackson received options to acquire $2500 shares of her employers common shares 2 years ago. The option choice was $50 per share, the market value of the common shares at the same time were granted, during July 2020 after the market price of the shares reaches $72 per share, Ms.Jackson exercises all of these options. She is still holding the shares at the end of the year.

1. Her employer provides gifts on all of their birthdays, for 2020 Ms.Jackson received a $250 gift certificate for a massage and facial at a local spa, Alton with $200 of cash.

Part a) Determine Ms.Jacksons minimum net employment income for the 2020 Taxation year (Show all Calculations to support your answers)

Part b)

1. Ms.Jackson contributes $5000 to save the children fund under the registered Canadian charity
2. Ms.Jackson pays for the medical expenses during 2020 for herself $4800, for her son $3200, for her daughter all attendant care $2400. For all it cost $10,400
3. In order to improve her ability to deal with people Ms.Jackson enrolled in a part Human Rescues program at a local university, her 2020 tuition fees totalled $1890

Using your answer from part A, determine Ms.Jacksons minimum net income for tax purposes, and minimum taxable income for the 2020 taxation year,

(Show all calculation)

Part c)

Using your answers from Part A & B, determine Ms.Jacksons federal tax payable for the 2020 Taxation year, ignore any amounts that may have been withheld by her employer or paid in instalments (Show all calculations)