Phil Cousteau is an accountant. Phil is 47 years old and is married to Claire who is 45 years old and blind. She has Net Income For Tax Purposes in 2020 of $9,000, all of which is interest on investments she inherited from her mother.

Phil and Claire have two children, a 15 year old daughter, Haley, and a 19 year old son, Manny. Both Haley and Manny live at home. Haley earned $800 during 2020 baby-sitting. Manny has a disability that is not severe enough for his doctor to sign off on the T2201 form.

Manny inherited investments from his grandmother and received $15,000 in interest income from them during 2020.

Phil's brother, Cameron, lives in the basement of Phil's Toronto home. Cameron is 50 years old and his only income for 2020 was EI benefit payments totaling $3,000. Phil also supports his 85 year old father, Jay, who is physically infirm and lives in a retirement home. Jay had Net Income For Tax Purposes of $9,000 for 2020. His income consisted of OAS, investment income and payments from a registered pension plan of $1,000.

Phil works for ModFam Company and was paid a salary of $70,000 in 2020. He also earned a bonus of $5,000 in 2020, with one-fifth of the bonus to be paid each year from 2020 to 2024.

During 2020 he received a briefcase worth $800 as an award for being the "employee of the year" and a Christmas basket from the company worth $600. All of the Company's employees received a similar basket.

ModFam transferred Phil from their Toronto office to their Vancouver office in 2020. On April 1, Phil moved his family out of the house they had rented in Toronto for the last 10 years and into a brand new house in Vancouver that cost $800,000. Although Jay was to stay at the retirement home in Toronto, Cameron moved with the family to Vancouver. Phil was reimbursed by his employer for all of his moving costs. As a consequence, he has no deductible moving costs.

To help finance the new house, ModFam Company lent Phil $500,000 on April 1 at 1 percent interest. Phil would have paid 5 percent interest on a similar loan from the bank.

ModFam provides Phil with a company car. While he was at the Toronto office, he had a Toyota Highlander that the company leased for $875 per month ($50 of which was for insurance). The company paid $1,600 for the Highlander's other operating costs from January 1 to March 31. During that period, Phil drove the car 9,000 kilometers of which 6,000 kilometers were employment related.

On April 1, the Vancouver office gave Phil the keys to a Toyota Camry Hybrid that was purchased for $31,300. The company paid $4,500 for the Camry's operating costs from April 1 to December 31. During that period, Phil drove the car 24,000 kilometers of which 10,000 kilometers were employment related.

During 2020, the following amounts were deducted from Phil's pay:

Federal Income Tax $8,500 CPP 2,898 EI 856 Group Life Insurance Premiums 600 Registered Pension Plan 1,200 United Way Donations 1,500

The company matched the life insurance and RPP amounts. During 2020, Phil paid the following amounts of eligible medical expenses:

Himself $ 650 Claire 1,940 Haley 860 Manny 1,250 Cameron 480 Jay 990

Phil paid $900 for his 2020 professional association dues. Claire made a $500 donation to their church during 2020.

Assume that the prescribed interest rates for 2020 were 2 percent for the first and fourth quarter and 3 percent for the second and third quarter.

Required: For the 2020 taxation year, calculate Mr. Cousteau's minimum: 1. Net Income For Tax Purposes, 2. Taxable Income, 3. Federal Tax Owing.

In determining these amounts, ignore GST, PST and HST considerations.

please explain all the steps