Please show full solution step by step it would be greatly appreciated thanks so much have a nice day!
Hi, I forgot to include them sorry. These are the federal tax rates for Canada. Thank you so much.
Assignment Problem Four - 2 (Individual Tax Payable - 5 Cases) Mr. William Norris is 45 years old. The following five independent Cases make varying assump- tions for the 2020 taxation year with respect to Mr. Norris' marital status and number of depen- dants. In all Cases, Mr. Norris earned employment income of $60,000 and his employer withheld the required El premiums and CPP contributions. Case A Mr. Norris is married and his wife, Susan, has Net Income For Tax Purposes of $8,800. Susan's 73 year old mother, Bernice, lives with them. Bernice has a mental infirmity that is not severe enough to qualify for the disability tax credit. However, it does make her dependent on William and Susan. Because of a large investment portfolio, Bernice had Net Income For Tax Purposes of $18,000 during 2020. Case B Mr. Norris is married and his wife, Susan, has Net Income For Tax Purposes of $4,410. They have one child, Martha, who is 10 years of age. Martha had no income during the year. During the year, the family had medical expenses as follows: William $1,200 Susan 1,600 Martha 350 Total $3,150 Case C Mr. Norris is married and his wife, Susan, has Net Income For Tax Purposes of $4,500. They have a son, Allen, who is 19 years old and lives at home. He attends university on a full time basis during eight months of the year. Mr. Norris pays $9,000 for Allen's tuition and $900 for required textbooks. Allen had employment income during the summer months of $2,200. He will transfer any unused credits to his father Case D Mr. Norris is not married and has no dependants. On receipt of a $300,000 inheritance in December, he donates $50,000 to his local hospital, a registered charity. He chooses to claim $15,000 in 2020. He also makes contributions to a federal political party in the amount of $1,000. Case E Mr. Norris is a single father. He has a daughter, Mary, who is 8 years old and lives with him. Two years ago, Mr. Norris graduated from a Canadian university. He currently has a Canada Student Loan outstanding. Mr. Norris pays back this loan in monthly instalments of $300. During the year, he paid $450 in interest on this loan. Required: In each Case, calculate Mr. Norris' minimum federal Tax Payable for 2020. Indicate any carry forwards available to him and his dependants and the carry forward provisions. Ignore any tax amounts that Mr. Norris might have had withheld or paid in instalments. 2020 Rates Taxable income In Excess Of $ -O- 48,535 97,069 150,473 214,368 Federal Tax $ -O- 7,280 17,230 31,115 49,645 Marginal Rate On Excess 15.0% 20.5% 26.0% 29.0% 33.0% Assignment Problem Four - 2 (Individual Tax Payable - 5 Cases) Mr. William Norris is 45 years old. The following five independent Cases make varying assump- tions for the 2020 taxation year with respect to Mr. Norris' marital status and number of depen- dants. In all Cases, Mr. Norris earned employment income of $60,000 and his employer withheld the required El premiums and CPP contributions. Case A Mr. Norris is married and his wife, Susan, has Net Income For Tax Purposes of $8,800. Susan's 73 year old mother, Bernice, lives with them. Bernice has a mental infirmity that is not severe enough to qualify for the disability tax credit. However, it does make her dependent on William and Susan. Because of a large investment portfolio, Bernice had Net Income For Tax Purposes of $18,000 during 2020. Case B Mr. Norris is married and his wife, Susan, has Net Income For Tax Purposes of $4,410. They have one child, Martha, who is 10 years of age. Martha had no income during the year. During the year, the family had medical expenses as follows: William $1,200 Susan 1,600 Martha 350 Total $3,150 Case C Mr. Norris is married and his wife, Susan, has Net Income For Tax Purposes of $4,500. They have a son, Allen, who is 19 years old and lives at home. He attends university on a full time basis during eight months of the year. Mr. Norris pays $9,000 for Allen's tuition and $900 for required textbooks. Allen had employment income during the summer months of $2,200. He will transfer any unused credits to his father Case D Mr. Norris is not married and has no dependants. On receipt of a $300,000 inheritance in December, he donates $50,000 to his local hospital, a registered charity. He chooses to claim $15,000 in 2020. He also makes contributions to a federal political party in the amount of $1,000. Case E Mr. Norris is a single father. He has a daughter, Mary, who is 8 years old and lives with him. Two years ago, Mr. Norris graduated from a Canadian university. He currently has a Canada Student Loan outstanding. Mr. Norris pays back this loan in monthly instalments of $300. During the year, he paid $450 in interest on this loan. Required: In each Case, calculate Mr. Norris' minimum federal Tax Payable for 2020. Indicate any carry forwards available to him and his dependants and the carry forward provisions. Ignore any tax amounts that Mr. Norris might have had withheld or paid in instalments. 2020 Rates Taxable income In Excess Of $ -O- 48,535 97,069 150,473 214,368 Federal Tax $ -O- 7,280 17,230 31,115 49,645 Marginal Rate On Excess 15.0% 20.5% 26.0% 29.0% 33.0%
