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Please show all calculations and label them clearly for full marks. Marks will be deducted for legibility & neatness.

Mr. Allen Arnold is 58 years old. Allen works for a Canadian Controlled Private Corporation, Not So Big Corporation as an accountant. Allen is in the process of completing his 2022 personal income tax return.

Required: Allen needs your help to calculate his federal tax payable (refund) for 2022. He has compiled the following information regarding to his transactions in 2022

Salary (gross) $103,000

Deductions Canada Pension Plan (CPP) $3,500

Employment Insurance (EI) 953

Income tax 25,000

Registered pension plan 7,000

Private health and dental premiums 1,050

Disability insurance premiums 1,200

Reimbursement for use of company car 1,200

Not So Big Corporation paid the following amounts on his behalf:

CPP and EI $4,900

Private health and dental premiums 950

Group term life insurance 350

Disability insurance premiums 720

Registered Pension Plan 8,000

Other information:

1. As part of his employment duties, Allen is required to travel to different company branches throughout Alberta to perform accounting tasks. Not So Big Corporation provides him with a 2020 Honda Accord and paid for all of the operating expenses. He drove the vehicle a total of 24,000 km in the year with 8,000 being for personal usage. The vehicle was purchased by the employer for $35,000. During the year, it was available for his use for 11 months. The operating expenses for the year totaled $6,500.

2. The disability plan was implemented in 2020. Allen paid $600 in annual premiums in 2020 and $1,200 in 2021. In the current year, as a result of an unfortunate accident he sustained an injury and was unable to work. He was off for 6 weeks and collected $10,000 from the insurance company.

3. On January 1, 2022, Not So Big Corporation implemented a stock purchase plan for all employees giving them the opportunity to purchase up to 5,000 common shares at $10 per share. At that time the shares were valued at $5.00 per share. On February 14, 2022 Allen purchased 5,000 shares when they were valued at $18 per share. He sold 2,000 shares for $30 per share on September 27, 2022.

4. Not So Big Corporation has a policy of paying for certain counseling services for employees. Not So Big Corporation paid $1,200 for Allens counselling fees relating to his depression from his divorce. corporate slogan

5. Not So Big Corporation held a contest open to all their employees to come up with a new corporate slogan. Allens entry won and he received $500.

6. On April 1, 2022 Not So Big Corporation gave Allen a $150,000 low interest loan to purchase a condo at 2.5%, the relevant prescribed rate is 2.5%. As he is required under his employment contract to set up a home office, Allen required more space. He paid legal fees of $1,200 on the purchase of this condo. His expenses for the year are as follows: mortgage interest - $15,800; property tax - $3,600; electricity and water - $1,215; natural gas - $1,675; toilet repairs - $500. Allen uses 200 square feet of his condo where he principally performs his employment duties. The condo is 2,000 square feet in total.

7. Allen got divorced on January 01, 2022. He has two daughters aged 18 and 13 who decided to live with him. The older daughter is a full time university student. She attended Royal Roads University for eight months and paid her own tuition fees of $5,500. Her father gave her an $800 monthly allowance to cover her books and other expenses. In 2022, she earned $6,800 from her summer job.

8. Instead of selling their matrimonial home, he and his former spouse decided to rent the place out and split the net rent (starting from May 01, 2022). They had purchased this house for $300,000 in 2018. An appraisal was done and the fair market value of the house was determined to be $350,000. The appliances in the house were estimated to have a fair market value of $5,000. The house was rented out for $2,400 per month from May to the end of the year. Expenses were property tax - $3,800; utilities - $2,400; maintenance - $800. All the expenses were for the period May to December. Allen and his ex would like to claim the maximum allowable CCA to minimize the tax payable

9. Allen had the following receipts in 2022: Bonus for 2020 received January 4, 2022 $5,000

Commission 26,140

Non-eligible dividends from Not So Big Corporation 2,500

10. Allen paid the following amount sin 2022:

Legal fees appealing 2020 CRA assessment 900

Dues to the Accounting Association 600

Canadian Western Bank safety deposit box rental 75

RRSP (contribution made February 15, 2022) 4,500

Taxes and interest on unsuccessful appeal above 14,200

Physiotherapy treatments 2,000

Dentist for himself 500

Contact lenses for his 7 year old daughter 250

Orthotics for himself 600

Braces for his 18 year old daughter 1,800

11. Allen also had the following transactions in 2022:

Proceeds on the sale of a painting (cost $650) $900

Proceeds on the sale of a coin collection (cost $2,000) 1,650

Interest income on a two-year GIC purchased on April 1, 2021, interest received on maturity (April 1, 2023). 10,000

Contribution to a federal political party 1,500

12. Mr. Arnold is the sole proprietor of a dance studio.

It has a year end of December 31 and it started business on July 1, 2022. He had the following receipts and disbursements related to the school: Tuition fees billed and received $15,000

Tuition fees to be billed 500 Rent on studio (2,400)

Purchase of stereo and karaoke system (3,500)

Donation to the Cancer Society (100)

2-day convention to Jasper meals ($100) included (800)

Purchase of 12 chairs for the change room (1,200)

13. In 2022, Allen paid $550 a month for child care and $5,000 for hockey lessons in 2022 for his 13 year old daughter. His former spouse paid him $600 a month in child support pursuant to a written agreement upon their separation on January 01, 2022. In addition Allens former spouse also paid $600 per month in spousal support. At year end Allen received $6,000 in total for child support and spousal support.

14. On February 12, 2022 he received 2,000 shares of BRX, a large public corporation from his late mothers estate. His mother purchased these shares at a weighted average cost of $3.75 a share. The fair market value of these shares on the date of transfer was $5.50 per share. Allen purchased another 100 shares on March 5, 2022 at $4.85 a share. On April 1st the company paid out a stock dividend of 15%, which resulted in an increase in the paid up capital of $5.00 for each share issued. He sold 1,200 shares on July 15, 2022 at $3.00 a share. On August 16, 2022 he purchased 250 shares at a price of $4.25 a share. At the end of the year he still owns these shares

15. Allens 2021 income tax return indicates the following tax balances: a) Allens 2021 earned income was $114,000 and his pension adjustment amount was $9,500. He did not have any unused contribution room carry forward. b) A non-capital loss carry forward of $18,000 from 2014 was available. c) A net-capital loss carry forward resulting from 2016 in the amount of $20,000, and $20,000 from 2021. d) Charitable donations of $1,500 from 2021 were not deducted

Required: Calculate Allens 2022: 1. Net employment income 2. Net property income 3. Net business income 4. Net other income 5. Net Taxable capital gains 6. Total income 7. Other deductions 8. Net income for tax purposes 9. Taxable income 10. Federal tax payable (refund)