Paul Gunter is a sales manager employed by a Canadian public company with a December 31 year end. His base salary for 2021 is $97,200. He also earned $24,300 in commissions and was awarded a bonus of $15,000 for his outstanding sales performance during the year. The bonus will not be paid until September 30, 2022. The employer's year end is December 31,

His employer withheld the following amounts from his base salary:

Registered Pension Plan Contributions (RPP) $4,860

Employment Insurance Premiums (EI) 890

Canada Pension Plan Contribution (CPP) 3,166

Union Dues 500

Cash Donations to United Way 3,000

Disability Insurance Premiums 1,750

Paul's employer makes matching contributions to his RPP and his disability insurance policy. The disability insurance benefits will be paid on a periodic basis and intended to compensate the individual for loss of employment income.

His employer provides him with an allowance of $1,200 a month in order to cover his travel costs, including the use of his personally owned automobile. The automobile was purchased for $28,000 in August 2020 and, during that year, was used 60% for employment related activities. In 2021, his employment related use of the vehicle increased to 80% and he incurred automobile operating expenses of $6,940.

His employer requires him to maintain an office in his personal residence and has provided him with a signed Form T2200, Paul uses 30% of his personal residence as an office. During 2021, the costs associated with his home were as follows'

Insurance 1,600

Interest payments on mortgage $7,240

Property taxes 4,500

Repairs and Maintenance 5,300

Utilities 3,980

Total $22,620

At the beginning of 2021, Paul's employer granted him options to buy 3,000 of the company's common shares at a price of $18 per share. At that time, the shares were trading at $15 per share. During April 2021, when the price per share had increased to $21 per share, Paul exercised all of these options, In order to buy new year gifts for his family, he sold 1,875 of these shares for $23 per share in December 2021.

His employer has a policy of giving all employees gifts to promote employee loyalty and help local businesses. During 2021, Paul received the following gifts:

A $300 gift certificate at Amazon_ca

A long service award (Gucci watch). The value of this gift was $2,000.

An Easter gift basket with easter eggs, fruits and cheese. The value of this gift was $225.

A weekend for him and his wife at a hotel in Victoria. The value of this gift was $430.

Family Information

Paul is 42 years old and lives with his common-law partner Priscilla. Both of them have a child from a previous marriage. Paul's child Rocky is 13 years old and is sufficiently disabled that he qualifies for the disability tax credit. Rocky has no income of his own. Priscilla's child Queenie is 8 years old and has no income of her own.

Priscilla is 36 years old and attends Simon Fraser University on a full-time basis. Her tuition fees are $9,000 for the year 2021. Priscilla has agreed to transfer any unused tuition credit to Paul.

During 2021, Priscilla receives child support payments of $800 per month from her ex-husband. She has a net income of $7,500 from her fashion retail business for the year 2021_

Other Inforinalioit

On June 27, 2021, Paul bought 5,000 shares of Smith Inc The shares have an adjusted cost base of $24 per share. On October 18, 2021, he sold all of these shares at $21.30 per share. On November 5, 2021, he acquired 4,000 shares of Smith Inc, at a cost of $18,50 per share and was still holding the shares at the end of the year.

2. During 2021, Paul had a coin collection that he sold for $12,700. The cost of all of the coins

totalled $9,500. An antique racing car which Paul acquired ten years ago for $32,000 was sold for $26,400.

3. Paul owned a piece of farmland with an adjusted cost base of $190,000. The land was

acquired by Paul a few years ago. During 2021, he sold the land at a price of $450,000. The purchaser provides a down payment of $45,000, with the balance payable in five annual instalments of $81,000 beginning in 2022.

4. During 2021, Paul receives non-eligible dividends of 57,600 and interest income from

Canadian corporate bonds of $4,930.

5. In 2020, Paul's Net Income For Tax Purposes was $150,000. This was made up of net

employment income of $115,000 (after the deduction of $5,750 in RPP contributions), interest income of $2,600, grossed up dividends of $4,500, a net rental loss of $8,000, royalties on a song written by his father two years ago of $2,200 and net business income of $33,750.

6. At the end of 2020, Paul's Unused RRSP Deduction Room was $6,300 and he had no

undeducted contributions, His employer reported that he had a 2020 Pension Adjustment of $11,500.

Required:

Calculate Paul's maximum deductible RRSP contribution for 2021.

Assume that Paul contributes the amount calculated in Part (a) above to his RRSP. Calculate Paul's 2021 minimum:

Net Income For Tax Purposes

Taxable Income, and

Federal Tax Payable.

Ignore provincial income taxes, any instalments he may have paid during the year, any income tax withholdings that would be made by his employer, and GST/F1ST/PST considerations.

Note:

You have to type your answers in an Excel file. You must provide detailed workings and explanations to the tax treatment of various items