PleaLydia Hines is a translator who works for a consulting firm in Ottawa. Her 2020 salary is $73,500, from which her employer, a Canadian-controlled private corporation, deducts maximum CPP and EI contributions. Also deducted is an RPP contribution of $2,600. The employer makes a matching contribution. Her employment compensation does not include any commission income. In addition, her employment contract does not require her to pay for her own travel expenses or to perform employment duties away from her employers place of business.

Lydias husband, Mark, is the beneficiary of a trust. Marks mother was extremely wealthy, and when she died, she left her assets to a trust for her children and her grandchildren, Mark will eventually inherit much of the estate. As a result, he no longer works and devotes much of his time to volunteer work. His 2020 net income is $8,600. All of this income is allocated from the trust.

The couple have three children aged 15, 20, and 22 who live with them. The 15-year-old, Barry, is in good health and has 2020 net income of $9,400 from the trust.

The 20-year-old, Mary, is dependent on her family because of mental health issues. However, she does not qualify for the disability tax credit. Her 2020 Net Income For Tax Purposes of $3,100 is from the trust.

The 22-year-old, Harry, attends university on a full-time basis in Vancouver for eight months of the year. Lydia pays his tuition of $11,300, his textbook costs of $1,250, and his residence fees of $8,000. Harrys 2020 net income of $14,100 is also allocated from the trust. He has agreed to transfer the maximum tuition amount to Lydia.

Other information:

1. To reward Lydia for her outstanding work, her employer has awarded her a bonus of $10,000. Of this total, $4,000 will be paid in 2021, with the remaining $6,000 payable in 2024.

1. Lydia received options to purchase 200 shares of her employers stock at a price of $72 per share last year. At the time the options were granted, the fair market value of the shares was $74 per share. During May 2020, when the shares had a fair market value of $90 per share, Lydia exercises all of these options. She is still holding these shares at the end of the year.

1. Lydia is provided with an automobile by her employer. The automobile was leased on February 1, 2020, at a monthly rate of $565, a figure which includes a payment for insurance of $75 per month. The automobile is driven a total of 36,000 kilometres, 32,000 of which were used for employment purposes and 4,000 for personal use. It was available to her from February 1 to the end of the year. The employer did not provide an automobile during the month of January.

1. During 2020, Lydia spent $5,600 on employment-related meals and entertainment with clients of her employer in the immediate vicinity of her employers business. Her employer reimbursed $3,200 of these costs. It was estimated that the remaining $2,400 of expenses were for Lydias meals.
2. During 2020, Lydia receives several gifts from her employer:

• As is the case for all of the companys employees, Lydia receives a $150 gift certificate that can be used for merchandise at a local department store.
• In recognition of her 10 years of service, Lydia receives a Visconti fountain pen she has been coveting. The retail value of this pen is $1,000.
• At Christmas, all of the companys employees receive a gift basket of holiday treats. The retail value of these gift baskets is $200.

1. After years of accumulating saving and living in rental units, Lydia and Mark purchase a residence. The cost of the house is $380,000 and, to assist with the purchase, Lydias employer provides a $100,000 interest free loan. The loan was received on May 1, 2020, and will have to be repaid on April 30, 2026. Assume the prescribed rate is 2% throughout 2020.

1. Because of the nature of her employment, Lydia is required to pay annual professional dues of $350. During 2020, Lydia makes her annual contribution of $2,000 to a registered charity.

1. Lydias employer provides all employees with a health care plan. It reimburses employees for 50% of all prescriptions, dental, and vision fees for the employee, the employees spouse, and all children under the age of 18 years. The familys 2020 medical expenses, all of which were paid by Lydia, were as follows:

Lydia - Prescriptions $2,500

Lydia Botox treatments 1,400

Mark Dentist fees for root canals(3) 7,200

Mark Hair replacement procedures 3,700

Barry Dentist fees, including $1,000 for a tooth replacement 2,100

Mary Doctor fees for treatment for depression 8,400

Mary - Presciptions 3,900

Mary Liposuction treatment for her upper arms 4,200

Harry - Physiotherapy 1,500

Harry Fees for prescription glasses and contact lenses 2,200

Required:

1. Determine Lydias minimum net income for 2020.
2. Determine Lydias minimum taxable income for 2020.

Based on your answer in Part B, determine Lydias federal income tax payable for 2020se show the details answer