ssignment Problem Four-7 (Comprehensive Tax Payable dia Hines is a translator who works for a consulting firm in Ottawa. H Her 2018 sala company, dedu :500, from which her employer, a Canadian controlled private c maximum CPP and El contributions. Also deducted is an RPP contributio employer makes a matching contribution. Her employment compensatio any commission income no ato does not include $73, husband, Mark is the beneficiary of a trust. Mark's mother was e ts to a trust for her children and her gra nand her grandchildnM and for pay an il Lydia's husband, Mark is the when she died, she left her asse ventuall much of his this income is from the trust y inherit much of the estate. As a result, he no longer wor time to volunteer work. His 2018 Net Income For Tax Purp year ol d 22 who live with them. The 15 The couple have three children aged 15, 20, an Barry, is in good health and has 2018 Net Income For Tax P The 20 year old, Mary, is dependent on her family because of she does not qualify for the disability tax credit. Her 2018 Net Income For Tax Purpo Purposes of $9,400 from the t However is dependent on her family because of mental health issues. The 22 year old, Harry, attends university on a full time basis in Vancouver for 8 months year. Lydia pays his tuition of $11,30o, his textbook costs of $1,250 and his residence fe 000. Harry's 2018 Net Income For Tax Purposes of $14,100 is from the trust, Ho agreed to transfer the maximum tuition amount to Lydia $3,100 is from the trust Other Information: 1. To reward Lydia for her outstanding work, and as an incentive to stay with the company her employer has awarded her a bonus of $10,000. Of this total, $4,000 will be paid in 019, with the remaining S6,000 payable in 2022 Lydia received options to purchase 200 shares er share last year. At the time the options were granted, the fair market value of the shares was $74 per share. During May, 2018, when the shares had a fair market value of $90 per share, Lydia exercises all of these options. She is still holding these shares at the end of the year 3. Lydia is provided with an automobile by her employer. The automobile was leased on bruary 1, ance of $75 per month. The automobile is driven a total of 36,000 kilometers, 32,000 of which were employment related. It was available to her from February 1 to the end of the ear. The employer did not provide an automobile during the month of January 4. During 2018, Lydia spent $5,600 on employment related meals and entertainment with ients of her employer. Her employer reimbursed $3,200 of these costs 5. During 2018, Lydia receives several gifts from her employer: - As is the case for all of the company's employees, Lydia receives a $150 gift certif cate that can be used for merchandise at a local department store . In recognition of her 10 years of service, Lydia receives a e has been coveting. The retail value of this pen is $1,000 er employer's stock at a price of $72 of h 2018 at a monthly rate of $565, a figure which includes a payment for insur Visconti fountain pen . At Christmas treats. The retail value of these gift baskets is ployees receive a gi $200 After years of accumulating savings and living in rental units sid employer provides a $100,000 interest free loan. The loan was granted o and will have to be repaid on April 30, 2023. Assume the prescribed e cost of the house is $380,000 and, to assist with the purchase, 2018 , Lydia and thr ou e year 2018 rateis ecause of the nature of her employment, Lydia is required to pay annual professional dues of $350 During 2018, Lydia makes her annual contribution of $2,000 to a regjstered charity, The 6. No Hope Of Salvation Army. (Lydia is an atheist.) g Lydia's employer provides all employees with a health care plan. It reimburses employees for 50 percent of all prescriptions, dental and vision fees for the employee, the employee's spouse and all children under 18 years of age. The family's 2018 medical expenses, all of which were paid by Lydia, were as follows: Lydia Prescriptions Lydia Botox treatments Mark Dentist's fees for root canals (3) Mark Hair replacement procedures y Dentist's fees, including $1,000 for a tooth replacement 2,100 $2,500 1,400 7,200 3,700 Barr Mary - Doctor's fees for treatment for depression Mary - Prescriptions Mary Liposuction treatment for her upper arms Harry Physiotherapy Harry- Fees for prescription glasses and contact lenses 8,400 3,900 4,200 1,500 2,200 etermine Lydia's minimum Net Income For Tax Purposes for the 2018 taxation year. Determine Lydia's minimum Taxable Income for the 2018 taxation year. Based on your answer in Part B, determine Lydia's federal Tax Payable for the 2018 taxa- tion year. Required: A. D ssignment Problem Four-7 (Comprehensive Tax Payable dia Hines is a translator who works for a consulting firm in Ottawa. H Her 2018 sala company, dedu :500, from which her employer, a Canadian controlled private c maximum CPP and El contributions. Also deducted is an RPP contributio employer makes a matching contribution. Her employment compensatio any commission income no ato does not include $73, husband, Mark is the beneficiary of a trust. Mark's mother was e ts to a trust for her children and her gra nand her grandchildnM and for pay an il Lydia's husband, Mark is the when she died, she left her asse ventuall much of his this income is from the trust y inherit much of the estate. As a result, he no longer wor time to volunteer work. His 2018 Net Income For Tax Purp year ol d 22 who live with them. The 15 The couple have three children aged 15, 20, an Barry, is in good health and has 2018 Net Income For Tax P The 20 year old, Mary, is dependent on her family because of she does not qualify for the disability tax credit. Her 2018 Net Income For Tax Purpo Purposes of $9,400 from the t However is dependent on her family because of mental health issues. The 22 year old, Harry, attends university on a full time basis in Vancouver for 8 months year. Lydia pays his tuition of $11,30o, his textbook costs of $1,250 and his residence fe 000. Harry's 2018 Net Income For Tax Purposes of $14,100 is from the trust, Ho agreed to transfer the maximum tuition amount to Lydia $3,100 is from the trust Other Information: 1. To reward Lydia for her outstanding work, and as an incentive to stay with the company her employer has awarded her a bonus of $10,000. Of this total, $4,000 will be paid in 019, with the remaining S6,000 payable in 2022 Lydia received options to purchase 200 shares er share last year. At the time the options were granted, the fair market value of the shares was $74 per share. During May, 2018, when the shares had a fair market value of $90 per share, Lydia exercises all of these options. She is still holding these shares at the end of the year 3. Lydia is provided with an automobile by her employer. The automobile was leased on bruary 1, ance of $75 per month. The automobile is driven a total of 36,000 kilometers, 32,000 of which were employment related. It was available to her from February 1 to the end of the ear. The employer did not provide an automobile during the month of January 4. During 2018, Lydia spent $5,600 on employment related meals and entertainment with ients of her employer. Her employer reimbursed $3,200 of these costs 5. During 2018, Lydia receives several gifts from her employer: - As is the case for all of the company's employees, Lydia receives a $150 gift certif cate that can be used for merchandise at a local department store . In recognition of her 10 years of service, Lydia receives a e has been coveting. The retail value of this pen is $1,000 er employer's stock at a price of $72 of h 2018 at a monthly rate of $565, a figure which includes a payment for insur Visconti fountain pen . At Christmas treats. The retail value of these gift baskets is ployees receive a gi $200 After years of accumulating savings and living in rental units sid employer provides a $100,000 interest free loan. The loan was granted o and will have to be repaid on April 30, 2023. Assume the prescribed e cost of the house is $380,000 and, to assist with the purchase, 2018 , Lydia and thr ou e year 2018 rateis ecause of the nature of her employment, Lydia is required to pay annual professional dues of $350 During 2018, Lydia makes her annual contribution of $2,000 to a regjstered charity, The 6. No Hope Of Salvation Army. (Lydia is an atheist.) g Lydia's employer provides all employees with a health care plan. It reimburses employees for 50 percent of all prescriptions, dental and vision fees for the employee, the employee's spouse and all children under 18 years of age. The family's 2018 medical expenses, all of which were paid by Lydia, were as follows: Lydia Prescriptions Lydia Botox treatments Mark Dentist's fees for root canals (3) Mark Hair replacement procedures y Dentist's fees, including $1,000 for a tooth replacement 2,100 $2,500 1,400 7,200 3,700 Barr Mary - Doctor's fees for treatment for depression Mary - Prescriptions Mary Liposuction treatment for her upper arms Harry Physiotherapy Harry- Fees for prescription glasses and contact lenses 8,400 3,900 4,200 1,500 2,200 etermine Lydia's minimum Net Income For Tax Purposes for the 2018 taxation year. Determine Lydia's minimum Taxable Income for the 2018 taxation year. Based on your answer in Part B, determine Lydia's federal Tax Payable for the 2018 taxa- tion year. Required: A. D