Sandra was born on July 3, 1986, is single, and works as a manager for a manufacturing company in Ontario. The following is contained on Sandras 2018 T4 slip from her employer:

Employment income $81,000

Employment Insurance premium 955

Canada Pension Plan contribution 2,544

Registered Pension Plan contribution 6,100

Income Tax paid (deducted by employer) 17,400

On November 14, 2018, Sandra contributed $6,000 to her RRSP and received a receipt for income tax purposes. In late 2016, Sandra purchased $51,000 worth of Canadian Tire shares which she financed with an investment loan that charged her $1,100 in interest during 2018. During 2018, she received $1,600 in dividends from her shares. Late in 2018, Sandra sold all of her Canadian Tire shares for proceeds of $66,000. She also received $300 in interest income from her savings amount of $25,000 in her financial institution.

Prepare Sandras 2018 federal income tax return by using the following steps:

Step 1: Calculate Total Income

Step 2: Calculate Net Income by subtracting deductions

Step 3: Calculate Taxable Income (same as Net Income)

Step 4: Calculate Net Federal Tax Payable

Step 6: Calculate applicable (non-refundable) Tax credits

Step 7: Calculate Tax owed or Refund

Make sure to identify all items in all the steps when conducting the above and show all your calculation including formulas used in each cell as applicable. Use separate areas of the same worksheet for steps addressed above and show calculations done for specific items such as dividend amount, taxable capital gain, non-refundable tax credit calculation etc. Use the sample solution format provided by your Instructor.

Each calculation step carries 1 mark.