Question
Slava Grichuk is a 58 year old employee with First Delta Corp. His employment income is $100,000 in 2021. His employer deducted the required income
Slava Grichuk is a 58 year old employee with First Delta Corp. His employment income is $100,000 in 2021. His employer deducted the required income tax, EI and CPP amounts from his paycheques during the year. Slava owns a diverse portfolio of stocks that paid eligible dividends in the amount of $6,000 during 2021. He also sold 1,000 shares in XYZ Inc., a publicly traded company, during 2021. These shares had an adjusted cost base of $20/share and he was able to sell them for $36/share during the year. Slava is a divorced father of three. His divorce agreement requires that he pay his ex-wife $3,000 per month in child support and $750 per month in spousal support. Slava made all of the payments during 2021 as required. Slava has a $10,000 allowable capital loss carryover from a number of years ago that he has not been able to use in a prior taxation year. Required: A. Calculate the amount to report on each line in the table below, including Slava's 2021 Net Income for Tax Purposes and Taxable Income.
Amount Description Line 3a Line 3b Line 3c Line 3d Net Income for Tax Purposes Division C Deductions Taxable Income B. Calculate the following Federal Tax Credits for Slava: Amount Description: Federal Dividend Tax Credit CPP Tax CreditStep by Step Solution
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