Question 36 [ED minutes} [Chapter 9, 10] Ms LM. Outovit formally separated from her husband late in 2002. 'Custody of her three children, ages 14, 10, and I5, was granted to her as part of an agreement [properly referenced to the Jmome Tax Act, as necessary} that was worked out with her husband in Family Court. The oldest child, Real, is 20 years old and, therefore, not part of the agreement, although he lives with her and the other children when not at school To make a fresh start, on January 15, 2003, she resigned from her position in Elmira, Ontario, where she had been employed by the same enrployer since November 1330. She took a position in Dundas, Ontario, about 55 kilometres away. his Outovit had always prepared her own tax return in previous years, but because of the extraordinary events of 2003'r and 2003, she is having some difficulty with the preparation of her retum. She has come to you for help, having already correctly calculated her income under Subdivisions a, b, and c of Division B, as follows: 200'? 2003 Subdivision a Salary (from both employers in 2003] $ 55,500 5 55,000 Taxable group term life insurance premium [paid by both employers in 2003] 450 4435 Taxable car benet 4,350 5,000 Deductible professional fees [350] [400] Deductible RPP contributions (defined benet plans} [4,3001 [5,500i Net Subdivision a income $55,110, WE: Subdivision b Business income {loss} from partnership share [drawings from partnership in both years: 54,000] ii: [1,000] $ 5,000 Property income: Net rental income oss] from apartment building [loss is before EBA] 10,050 [2,000] Grossedup dividends from active business income of a CCPC 1,100 1,200 Canada Savings Bond interest 3,300 3,500 Deductible interest on loan to buy shares {Emil _[20_Q] Net Subdivision 5 income 5 13,250 5 3,500 Subdivision c Taxable capital gain on sale of shares 5 5,200 $ 5,500 Taxable capital gain on sale of cottage 3,000 Taxable capital gain on sale of painting 1,200 Net Subdivision c income 5 5,200 5 15,200 Total income from above sources m M Additional Information for 2MB: (1] She made a lumpsum direct transfer of $22,000 to her RESP out of tire EPP of her former employer who had made vested comributions since January 1, 1335. (2} During 2003, she received a retiring allowance of $53,000 for long service from her previous employer. (3) During 2003, she made the following selected expenditures: (a) contribution to her RESP in respect of 2003, consisting of $42,000 in January 2005 and another $5,000 in October 2003. Her employer reported a pension adjusmrent (PA) of $2,500 for 200