Please show all your work just for Reyna. Thank you!

Part A You, CPA, are the tax partner in your own small accounting firm, You CPA LLP. You have just finished a meeting with two potential clients; Andres and Reyna Garcia. Andres and Reyna are members at the Edmonton Golf & Country Club and approached you regarding their income taxes one day after golf. Andres is a manager at a large software firm and Reyna is an accountant working part-time for the local government. You make plans to meet with Andres and Reyna at your office the following week. Andres and Reyna arrive at your office the following Monday morning. They explain that they are unhappy with their accountant, who never explains things to them and filed their previous year's tax return late. As such, they would like you to prepare their current year's tax returns. During the meeting Andres and Reyna provided you with their previous year's income tax returns (as filed by the previous accountant) as well as an overview of their 2021 earnings and deductions. Andres and Reyna would like you to prepare a preliminary calculation of net income for tax purposes for each of them for 2021 Preliminary information from the previous year's tax returns, as summarized by your assistant, is included in Exhibit I. Your assistant's notes from the meeting with Andres and Reyna regarding their 2021 earnings are included in Exhibit II. Required: Please prepare the following memo's, show all of your work including detailed calculations and explanations for each calculation and items not included in the assignment. 1. Prepare a memo, to your clients Andres and Reyna calculating, separately, their 2021 net income for tax purposes based on the information provided in Exhibits I and II. The memo should be prepared using Excel and include a calculation of net income, including all sources of income and any applicable deductions using the Section 3 format. Andres and Reyna were upset with their previous accountant for not explaining their taxes, therefore it is important that your memo includes any formula's used in the calculations, a description of any assumptions made as well as an explanation of any items not included in your calculation of net income. For full marks, please be sure to reference all information and conclusions in your memo to the appropriate section of the Income Tax Act and/or any IT Bulletins or other CRA documents. Exhibiti Information taken from the previous year's tax returns: Andres is 47 years old and Reyna is 45 years old, in the current taxation year. Andres requires $ 2,223 was previously married. The divorce agreement, which was issued in 2014 Andres to make monthly spousal support payments to his former spouse in the amount of and 2016 Andres and Reyna have two children: born January 13, 2018 Karen ,born August 22, Both children are in good health. lan 5,191 Reyna has unused RRSP contribution room from the previous taxation year of Her earned income in the previous taxation year was $ 61,755 has an RPP through her employer and her pension adjustment was $ Please note that $ 3,235 for Reyna 2020 7,469 Andres has unused RRSP contribution room from the previous taxation year of His earned income in the previous taxation year was $ 132,457 does not have an employer provided RPP or DPSP. $ Please note that Andres Exhibit III 2021 Tax Information for Reyna 2021 T4 slip from the City of Edmonton Reyna provided you with her which reports the following amounts: (her employer) $ 63,502 Gross salary Amounts withheld from salary: Income taxes withheld Canada Pension Plan (CPP) Employment Insurance (EI) RPP contributions (Note 1) Pension adjustment Life insurance premiums (Note 2) $ $ $ $ $ $ 6,350 3,166 889 1,778 3,556 1,235 Note 1: Note 2: the City of Edmonton the City of Edmonton makes matching contributions to makes matching contributions to Reyna Reyna 's RPP. s life insurance. the City of Edmonton provides Reyna with In addition to the above mentioned items, the following benefits: (a) 900. (b) the City of Edmonton sent Reyna to an inclusive workplace course. The cost of tuition for this course was $ the City of Edmonton provides Reyna with a vehicle that she can drive for work purposes, but this vehicle is also available to her for personal use. The vehicle was originally purchased by the City of Edmonton in 2017 for a cost of $ 56,614 . The current market value of the car is $ 28,307 . The vehicle is made available to Reyna for the entire year, during which she drives it 20,379 kms were for employment use and 37,053 kms is the total kms driven in the year. Reyna made the following contribution to her RRSP account: - contribution to self-directed RRSP account at TD Waterhouse made on January 21 2022 for $ 4,620 During the year, Andres and Reyna for their children while they both worked. The nanny charges for caring for the children. paid their nanny Suzie Smith, to care $ 7,346 per child, per year Instead of investing in shares, Reyna chooses to invest her savings into local businesses. In the previous year, Reyna invested funds into a local food truck business. In the current year, the food truck had a net business loss of $ 6,175 . As one of three partners in the business, Reyna 's share of this business loss is $ 2,058 $ Reyna acquired a ten year Canada Savings bond on September 1 of the prior taxation year for The bond earns 2.5% interest, which will be paid on the maturity date. 6,175 Part A You, CPA, are the tax partner in your own small accounting firm, You CPA LLP. You have just finished a meeting with two potential clients; Andres and Reyna Garcia. Andres and Reyna are members at the Edmonton Golf & Country Club and approached you regarding their income taxes one day after golf. Andres is a manager at a large software firm and Reyna is an accountant working part-time for the local government. You make plans to meet with Andres and Reyna at your office the following week. Andres and Reyna arrive at your office the following Monday morning. They explain that they are unhappy with their accountant, who never explains things to them and filed their previous year's tax return late. As such, they would like you to prepare their current year's tax returns. During the meeting Andres and Reyna provided you with their previous year's income tax returns (as filed by the previous accountant) as well as an overview of their 2021 earnings and deductions. Andres and Reyna would like you to prepare a preliminary calculation of net income for tax purposes for each of them for 2021 Preliminary information from the previous year's tax returns, as summarized by your assistant, is included in Exhibit I. Your assistant's notes from the meeting with Andres and Reyna regarding their 2021 earnings are included in Exhibit II. Required: Please prepare the following memo's, show all of your work including detailed calculations and explanations for each calculation and items not included in the assignment. 1. Prepare a memo, to your clients Andres and Reyna calculating, separately, their 2021 net income for tax purposes based on the information provided in Exhibits I and II. The memo should be prepared using Excel and include a calculation of net income, including all sources of income and any applicable deductions using the Section 3 format. Andres and Reyna were upset with their previous accountant for not explaining their taxes, therefore it is important that your memo includes any formula's used in the calculations, a description of any assumptions made as well as an explanation of any items not included in your calculation of net income. For full marks, please be sure to reference all information and conclusions in your memo to the appropriate section of the Income Tax Act and/or any IT Bulletins or other CRA documents. Exhibiti Information taken from the previous year's tax returns: Andres is 47 years old and Reyna is 45 years old, in the current taxation year. Andres requires $ 2,223 was previously married. The divorce agreement, which was issued in 2014 Andres to make monthly spousal support payments to his former spouse in the amount of and 2016 Andres and Reyna have two children: born January 13, 2018 Karen ,born August 22, Both children are in good health. lan 5,191 Reyna has unused RRSP contribution room from the previous taxation year of Her earned income in the previous taxation year was $ 61,755 has an RPP through her employer and her pension adjustment was $ Please note that $ 3,235 for Reyna 2020 7,469 Andres has unused RRSP contribution room from the previous taxation year of His earned income in the previous taxation year was $ 132,457 does not have an employer provided RPP or DPSP. $ Please note that Andres Exhibit III 2021 Tax Information for Reyna 2021 T4 slip from the City of Edmonton Reyna provided you with her which reports the following amounts: (her employer) $ 63,502 Gross salary Amounts withheld from salary: Income taxes withheld Canada Pension Plan (CPP) Employment Insurance (EI) RPP contributions (Note 1) Pension adjustment Life insurance premiums (Note 2) $ $ $ $ $ $ 6,350 3,166 889 1,778 3,556 1,235 Note 1: Note 2: the City of Edmonton the City of Edmonton makes matching contributions to makes matching contributions to Reyna Reyna 's RPP. s life insurance. the City of Edmonton provides Reyna with In addition to the above mentioned items, the following benefits: (a) 900. (b) the City of Edmonton sent Reyna to an inclusive workplace course. The cost of tuition for this course was $ the City of Edmonton provides Reyna with a vehicle that she can drive for work purposes, but this vehicle is also available to her for personal use. The vehicle was originally purchased by the City of Edmonton in 2017 for a cost of $ 56,614 . The current market value of the car is $ 28,307 . The vehicle is made available to Reyna for the entire year, during which she drives it 20,379 kms were for employment use and 37,053 kms is the total kms driven in the year. Reyna made the following contribution to her RRSP account: - contribution to self-directed RRSP account at TD Waterhouse made on January 21 2022 for $ 4,620 During the year, Andres and Reyna for their children while they both worked. The nanny charges for caring for the children. paid their nanny Suzie Smith, to care $ 7,346 per child, per year Instead of investing in shares, Reyna chooses to invest her savings into local businesses. In the previous year, Reyna invested funds into a local food truck business. In the current year, the food truck had a net business loss of $ 6,175 . As one of three partners in the business, Reyna 's share of this business loss is $ 2,058 $ Reyna acquired a ten year Canada Savings bond on September 1 of the prior taxation year for The bond earns 2.5% interest, which will be paid on the maturity date. 6,175