Nora is employed as the Associate Vice President of Marketing and Branding for Royal Food Distributors Ltd. (RFDL), a Canadian controlled private corporation (CCPC). RFDL creates relationships with local farmers, ranchers, fishermen/women, bakers, and artisans, to make it easy for customers to have the freshest ingredients and products delivered directly to homes and/or offices. RFDL has shaped its business model around valuing sustainable farming practices, the humane treatment of animals, and the protection of the environment by caring about how and where food is grown and produced.
Nora has requested your assistance in preparing her 2022 personal income tax return and advice on certain other tax matters.
Information regarding Nora’s financial activities for 2022 is outlined in Exhibit A-1. Selected information from her 2020 tax return is provided in Exhibit A-2.
Required
a. Calculate Nora’s minimum net income for tax purposes in accordance with the format of section 3 of the Income Tax Act, and her minimum taxable income for the 2022 taxation year.
b. Based on your answer to part (a), calculate Nora’s minimum federal income tax payable for the 2022 taxation year. Show all calculations.

Exhibit A-1
1. In 2022, Nora received a salary of $155,000. From this income, RFDL deducted income tax of $19,000, CPP of $3,300 and EI of $930.08. The company contributed $500 to a group term life insurance premium and $3,500 to the company’s deferred profit sharing plan. The company also contributed $2,500 to its registered pension plan on Nora’s behalf; Nora made a matching contribution of $2,500.
2. She received a discount of 50% on products purchased through the employer. She estimated that the discount saved her $1,500. This discount is only available to senior management of the company.
3. She attended a one-day convention related to her job. RFDL paid $600 for the cost of the convention. She also attended an internal sales conference arranged exclusively for the sales department. Each participant was given a $25 retail store gift card.
4. She has to meet potential clients on a frequent basis. RFDL paid her $2,500 as a clothing allowance. She spent $5,000 on new clothing during the year.
5. Nora is required to use her own automobile for employment purposes. Her employer has signed a T2200 for her in this respect. She was given $2,000 as an auto allowance in 2022. She travelled a total of 20,000 km, of which 9,000 km were for employment purposes. Her total operating cost for this year was $4,000 and on December 31, 2021, the undepreciated capital cost allowance balance was $10,000.

6. She received a dividend of $2,020 from the active business income of a RFDL. She also received $1,900 (net of $200 withholding tax) from a U.S. company. She paid $500 to an investment advisor for advice regarding an RRSP investment.
7. She sold a collection of stamps for $2,500 on October 1, 2022. She won this collection in a lottery in 2015. The fair market value of this collection was estimated at $800 at the time of winning.
8. Nora is trying to establish her own business. In 2022, she started a digital media marketing consulting business as a sole proprietor on weekends. Her clientele consisted of micro-farms, local farmer markets, and retail grocery chains. Her gross revenues for this business were $25,000 and operating expenses were $5,000. Her other expenses included a golf club membership fee of $2,000 to find the potential clients and $3,000 home office expenses related to the business. She used a portion of her house as her principal place of business.
9. In 2022, Nora had the following other receipts and disbursements:
Donation to the Canadian Cancer Society $500
Employee assistance counselling fee paid by RFDL $600
Financial counselling fee paid by RFDL $400
Digital marketing course tuition fee paid by RFDL $750
(BCIT, 12 week course)
10. Nora is married and has three children ages 7, 10, and 13. Her husband is a mechanical engineer for a local start up technology company and earned $190,000 in 2022. Nora’s mother also lives with her and her husband and is retired. Nora paid her $3,000 during 2022 for helping with some casual childcare. The remainder of childcare expenses were paid to a registered afterschool care program of $12,000.
11. Nora invested $16,000 to her RRSP for 2022.
12. On January 15, 2022 Nora received options to buy 300 shares of RFDL’s common stock at a price of $23 per share. At this time, the shares were trading at $20 per share. Nora exercised her options on July 6, 2022, when the shares were trading at $28 per share. Nora sold the shares in December 2022 for $32/share.

Exhibit A-2
Carry Forwards Summary
From 2019 To 2022
Listed personal property losses $1,100 $1,100


Capital Gains deduction used for qualified farm property/small business $75,000 $75,000


Registered Retirement Savings Plan:

Deduction limit from previous year’s Notice of (Re) assessment $15,000

Maximum RRSP deduction limit for 2022 $15,000