Show all steps and calculations (Canadian Tax). Click on the image to see the full question.

a. Using the format we learned in class, calculate Harold's net income for tax purposes, taxable income, and balance due/(refundable). b. Provide a brief explanation for any items excluded from your calculations.

7. (74 minutes)(28 marks) Harold Cooper has asked for your assistance in filing his 2019 personal tax return. He has provided you with the following information in respect of his affairs in 2019: - Harold earned a gross salary of $500,000 from his employer, Fresh Bread Inc. o CPP and El withholdings were $2,749 and $860, respectively; and o Income tax of $250,000 was withheld from his net pay. Fresh Bread Inc. has a bonus plan for Harold. Harold earned a total bonus of $100,000 in 2019. $75,000 was paid to him on December 31, 2019 and the remaining $25,000 will be paid to him on March 31, 2020. Harold disposed of the following properties that he owned personally: Property Cost Selling Price 2007 Honda Civic $20,000 $3,000 Antique ring $2,000 $12,000 Office furniture $500 $700 In 2018, Harold sold his shares of Post-Office Inc. ("POI") for proceeds of $200,000. He originally acquired the shares a number of years ago for $50,000. The shares of POI should be considered Qualifying Small Business Corporation ("QSBC") shares and Harold used his lifetime capital gain's exemption to reduce the consequence of this disposition to $0. In 2018, Harold lent $400,000 to his friend's business, Computer Information Analytics Inc ("CIA"), a small business corporation. In 2019, CIA went out of business and filed for bankruptcy. CIA repaid Harold $100,000 of the loan before shutting down. Harold made donations of $5,000 to his local parish (a registered charity) during the year. He also made donations of $600 to a registered Federal political party. Harold made the following contributions and earned the following amounts within his investment accounts: Account Contributions Ineligible Dividends TFSA $5,000 $100 RRSP $20,000 $1,000 Unregistered (taxable) $20,000 $1,000 Assume Harold had sufficient TFSA and RRSP contribution room for these contributions. . Harold's wife earned Division B income of $5,000 during 2019. Harold and his wife each incurred $10,000 of eligible medical expenses during 2019. Assume Harold's provincial tax payable net of provincial credits has been correctly calculated as $70,000