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Please I need full marks on this assignment so make sure your numbers are correct and please give me detailed answer! For the past 5
Please I need full marks on this assignment so make sure your numbers are correct and please give me detailed answer!
For the past years, Mr Frost has been employed as a financial analyst by a large Canadian public company located in Winnipeg. During he received $ in wages. In addition, he was awarded an $ bonus based on the performance of his division. Of the total bonus, $ was paid in and the remainder is to be paid on January
During Mr Frost's employer withheld the following amounts from his gross wages:
Federal Income Tax $
EI Premiums
CPP Contributions
RPP Contributions
Donations to a registered charity
Union dues
Other Information:
Due to an airplane accident while flying back from Thunder Bay on business, Mr Frost was seriously injured and confined to a hospital for two full months of While he was off work, he received workers compensation benefits of $ and he received $ in disability payments through his employers disability insurance plan. All the premiums for the disability insurance plan are paid by the employer. The payments from workers compensation and the disability insurance plan were not included on Mr Frosts T
Mr Frosts employer contributed $ into Mr Frost's Registered Pension Plan RPP and $ into his Deferred ProfitSharing Plan DPSP These are the same amounts that the employer contributed to Mr Frosts RPP and DPSP in
Mr Frost is provided with a car that the company leases at a rate of $ per month, including both GST and PST The company pays for all the operating costs of the car, and these amounted to $ for Mr Frost drove the car a total of kilometers in kilometers of which were carefully documented as use for employment purposes and for personal use. While he was in the hospital see Item his employer required that the car be returned to company premises. Mr Frost reimbursed his employer $ to cover his operating expenses.
On January Mr Frost received options to buy shares of his employer's common shares at a price of $ per share. At this time, the shares were trading at $ per share. Mr Frost exercised these options on July when the shares were trading at $ per share. He does not plan to sell the shares for at least a year.
To assist Mr Frost in acquiring a home in Winnipeg, his employer granted him a fiveyear, interest free loan of $ The loan was granted on October and, at this point in time, the interest rate on open fiveyear mortgages was Assume the prescribed interest on employee loans was on this date and remained unchanged during the year. Mr Frost purchased a house for $ on October He has not owned a home during any of the preceding four years.
Other disbursements made by Mr Frost include the following:
Advanced financial accounting course tuition fees $
Music history course tuition fees
Fees paid to financial planner
Payment of premiums on life insurance
Mr Frost's employer reimbursed him for the tuition fees for the accounting course, but not the music course. The reimbursement was not included as a taxable benefit on his T
Mr Frost is a widower. His wife was killed in a car accident years ago that injured his yearold son, Harold, so badly that he qualifies for the disability tax credit. Harold has no net income for the year.
Mr Frosts Notice of Assessment showed unused Registered Retirement Savings Plan RRSP room of $ In his earned income for RRSP purposes was $ He wants to maximize his RRSP contributions in
Mr Frost's mother, Grace, lives with Mr Frost and cares for Harold. Grace is years old, and her net income is $ Grace refused to take any payments for caring for Harold as she received a large inheritance in the previous year. As a result, Mr Frost did not pay any child care or attendant costs for Harold.
Mr Frost paid the following eligible medical costs:
For Himself $
For Harold
For Grace
Total $
Required: Show all calculations
Calculate Mr Frost's :
a Employment income,
b Net income for tax purposes, and
c Taxable income
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