Question 3 - Calculation of Tax Payable and Tuition Tax Credit (7 Marks) - Show Calculations

At the beginning of 2020, Karl Fine, who is single and 30 years old, has a carry forward of a tuition tax credit from 2019 of $525 [(15%)($3,500)]. During 2020, he is in full time attendance at a Canadian university. His tuition fees total $5,650 for the year. His Taxable Income (Division C) for 2020 from investments is $34,650. Other than his education related tax credits, the only other tax credit available to him is his basic personal amount.

Required:

Determine Karl's tax payable before tax credits, the total tuition tax credit and any available carry forward and his net tax payable.

All Tax is to be made according to Canadian tax Law