Question 2: RECORD YOUR ANSWERS IN Excel Tab 2 & 3 (41 Marks)

For 2022, Ms. Naseem McDonald, a successful salesperson has the following transactions:

Salary & Commission

$120,000

In 2022, her employer withholds the following amounts from her salary:

RPP Contributions	$7,500
EI Premiums	953
CPP Contribution	3,500
Union Dues	420
United Way Contributions (Charitable Organization)	1,200
Income Tax	27,800

ADDITIONAL INFORMATION

In addition to her salary and commission, Ms. MacDonald additional income for 2022 are as follows:

Incurred capital loss on her trading portfolio	(30,000)
Made capital gain on her trading portfolio	25,000
Ms. MacDonald invested in a rental property that her accountant determined had net rental loss of $6,500 (before capital cost allowance).	(6,500)
In 2022, Ms. MacDonald enrolled in a university course, how be an effective salesperson and paid for the course. She has a valid T2202 certificate	2,200

ADDITIONAL INFORMATION

In order to assist Ms. MacDonald in acquiring a home, her employer granted her a five-year, interest-free loan of $125,000. The loan was granted on October 1, 2022, and, at this point in time, the interest rate on open five-year mortgages was 5%.

In 2022, Ms. MacDonald receives several gifts from her employer:

As a reward for winning the company's Employee of the Month Award, she receives an expense-paid weekend in a local hotel. The regular price for this package was $1,200.

As is the case for all of the company's employees, Marvin received a $600 gift certificate for merchandise at a local department store.

At Christmas, the company provides each employee with a basket of gourmet food. The value of this basket is $450.

In recognition of her 10 years of service, Ms. MacDonald receives a beautiful Visconti fountain pen she has been wanting. The retail value of this pen is $1,000.

Ms. MacDonald also paid spousal support payments to her ex-husband of $12,00 for the year 2022.

Ms. MacDonald is a single mom and has an 8-year-old son, Harold. Harold qualifies for the disability tax credit as he is blind. Harold has no Net Income for the year.

Ms. MacDonalds mother, Grace (67 years old), lives with Ms. MacDonald and cares for Harold. For 2022, Graces Net Income for Tax Purposes is $7,500. Grace refused to take any payments for caring for Harold.

Ms. MacDonald paid the following medical expenses:

Ms. MacDonald	$9,300
Harold (son)	12,000
Grace (mother)	6,200

REQUIRED:

PART 1:

Determine Ms. MacDonalds minimum Net Income for Tax Purposes (NIFTP) and Taxable Income in accordance with the ordering and sourcing rules of ITA Section 3.

PART 2:

Determine Ms. MacDonalds minimum federal Tax Payable (Refund).