Question $4-$ Tax payable Individual $(15$ marks$)$

Mr$.$ John Kay is $61$ years of age, and his $2023$ income comprises net employment income of $$48,000,$ non$-$eligible dividends of $$5,000,$ and old age security benefits of $$6,500.$ For $2023,$ his employer withheld CPP of $$2,000,$ EI of $$800,$ and Federal Income tax of $$6,000,$ Other information for Mr$.$ Kay's $2023$ taxation year:

$1-$ Mr$.$ Kay's spouse is $68$ years old. Her income for the year is a $$5,000$ eligible dividend from a Canadian taxable corp and $$5,000$ from an RRIF annuity $($Pension$).$

$2-$ Mr$.$ and Mrs$.$ Kay have three healthy children; in December $2023,$ they were $12,14,$ and $19$ years old. Brenda, the youngest daughter, has an income of $$2,700,$ none of which was employment income. Abbey, the oldest daughter, had a net income of $$12,000,$ none of which was employment income. In Sept $2023,$ Abbey began as a full$-$time student at Calgary University. Mr$.$ Kay paid her one$-$year tuition fees of $$8,000(50\%$ for the fall $2023$ semester and $50\%$ for Winter $2024.($He provides you with a $2023$ T$2201$ showing the tuition was paid$).$

$3-$ The annual family medical expenses are $$6,100$; none are for Abbey. Mrs$.$ Kay paid all the amounts.

$4-$ In $2023,$ Mr$.$ Kay made a cash donation to a Canadian charity in the amount of $$3,000.$

$5-$ Mr$.$ Kay informs you that he has amounts carried from $2008,$ a net capital loss of $8,000,$ charitable donations of $$500,$ and a non$-$capital loss of $$6,000$; he would like to deduct it if possible.

Mr$.$ Kay provides you with all the required forms signed by his daughter Abbey and his wife, agreeing to transfer any eligible amounts to Mr$.$ Kay at the maximum.

Required:

Calculate Mr$.$ Kay's $2023$ minimum net federal taxes payable. Show calculations. ITA references are for extra bonus marks. $($Hint: you need calculate Taxable income first$)$