Profile Assignment #1 Family: Martin Dorne, SIN 499499499 Address: 150 Humber College Blvd, Etobicoke Ontario M1M1M1 Phone number 416-675-6622 He has no foreign income He has not sold a principal residence during the year Brian Lassiter, SIN 994994994 Same address and phone number Martin Dorne born on Jan 15, 1966 and is employed in construction work by a large public company. His annual salary is $98,500 in 2021, none of which involves commissions. As the company was very successful in 2021, Martin has been provided with a $15,000 bonus. This bonus was paid $7,000 in December 2021, and the rest in February 2022. Martin's employer withheld maximum EI premiums and CPP contributions, along with $18,000 in federal income taxes. Other amounts withheld by his employer are as follows:
CPP/EI max
RPP Contributions $4,300
Union Dues 450
Martin's common-law partner is Brian Lassiter. Brian was born on Feb 5, 1970, and is legally blind. Brian has a 2021 income from investments of $500. Martin and Brian adopted three orphaned brothers from a war-torn country 8 years ago. Information on these brothers is as follows:
David Dorne, Birth date Mar 3, 2005, in good health, and has income from part-time jobs of $10,500. Devon Dorne Birth date is Apr 8, 2000, and has serious breathing problems that prevent him from working on a full-time basis. He has got a doctor’s letter attesting that his condition is serious but he does not have a “marked” restriction of daily activities. He lives with Martin and Brian and has income from part time jobs of $5,150. Derek Dorne Birthdate May 15, 1998 and attends university on a full time basis for 8 months of the year. Martin pays his tuition fees of $14,300, along with textbook costs of $1,200. He lives with Martin and Brian and is in good health. He has self-employed income of $13,500. Assume he pays no CPP contributions on this income. He would like to transfer his tuition credit to Martin.
Other Information:
1.During 2021, Martin spent $12,300 on employment related meals and entertainment with clients of his employer. His employer reimbursed $7,300 of these costs.2.During 2021, Martin makes his regular annual contribution of $2,000 to a registered charity, The Shepherds Of No Hope. (Martin is a very pessimistic individual.)3.The family's 2021 medical expenses, all of which were paid by Martin, were as follows:
Martin and Brian $ 2,200
David 1,700
Devon 10,600
Derek 4,500
4. Martin received options to purchase 500 shares of his employer's stock at a price of $45 per share 2 years ago. At the time the options were granted, the market price of the shares was $50 per share. During July 2021, when the shares are trading at $70 per share, Martin exercises all of these options. He is still holding these shares on December 31, 2021.6. In 2021, Martin receives several gifts from his employer:
•In recognition of his 10 years of service, Martin receives an engraved wristwatch. The retail value of this watch is $800.
•At Christmas, all of the company's employees receive a gift box of vintage wines. The retail value of these wines is $400.
Required:
A.Create a profile file, for Martin.B.Determine Martin's minimum Net Income and taxable income for the 2021 taxation year.C.Based on your answer in Part B, determine Martin's federal Tax Payable and amount owing(refund) for the 2021 taxation year.D.In order to submit this assignment, first of all, save the file!! Then, you must create a PDF file (you should either be able to Save it as PDF or print to PDF. Do not submit the file as a Profile file.E.Email this file to me thru Course messages in Blackboard.