Taxation

Comprehensive Assignment

For the past $5$ years, Mr$.$ Brooks has been employed as a financial analyst by a large Canadian

public firm located in Winnipeg. During $2023,$ his basic gross salary amounts to $$69,000.$ In

addition, he was awarded an $$11,000$ bonus based on the performance of his division. Of the

total bonus, $$6,500$ was paid in $2023$ and the remainder is to be paid on January $15,2024.$

During $2023,$ Mr$.$ Brooks$$ employer withheld the following amounts from his gross wages:

$$5,400$

$1,002$

$3,123$

$2,800$

$480$

$1,240$

Federal Income Tax

Employment Insurance Premiums Canada Pension

Plan Contributions $(631$ enhanced portion$)$

Registered Pension Plan Contributions Donations

To The United Way

Union Dues

Payments For Personal Use of Company Car $1,000$

Other Information:

$1.$ Due to an airplane accident while flying back from Thunder Bay on business, Mr$.$ Brooks was

seriously injured and confined to a hospital for two full months during $2023.$ As his employer

provides complete group disability insurance coverage, he received a total of $$4,200$ in

payments during this period. All of the premiums for this insurance plan are paid by the

employer. The plan provides periodic benefits that compensate for lost employment income.

$2.$ Mr$.$ Brooks is provided with a car that the company leases at a rate of $$678$ per month,

including both GST and PST$.$ The company pays for all of the operating costs of the car and

these amounted to $$3,500$ during $2023.$ Mr$.$ Brooks drove the car a total of $35,000$ kilometers

during $2023,30,000$ kilometers of which were carefully documented as employment related

travel. While he was in the hospital $($see Item $1),$ his employer required that the car be

returned to company premises.

$3.$ On January $15,2022,$ Mr$.$ Brooks received options to buy $200$ shares of his employer$$s

common stock at a price of $$23$ per share. At this time, the shares were trading at $$23$ per

share. Mr$.$ Brooks exercised these options on July $6,2023,$ when the shares were trading at

$$28$ per share. He received $$2,000$ in eligible dividends in $2023.$

$4.$ Other disbursements made by Mr$.$ Brooks include the following:

Advanced financial accounting course tuition fees $$1,200$

Music history course tuition fees

$($University of Manitoba one week intensive course$)600$

Fees paid to financial planner $300$

Payment of premiums on life insurance $642$

Mr$.$ Brooks$$ employer reimbursed him for the tuition fees for the accounting course, but not

the music course. The reimbursement was not included on his T$4.$

Taxation ACTG $3002$

Comprehensive Assignment

$5.$ Mr$.$ Brooks is a widower and his $8$ year old son, Harold, was badly injured in a car accident sot

he qualifies for the disability tax credit. Harold has no Net Income for the year.

$6.$ Mr$.$ Brooks$$ mother, Grace, lives with Mr$.$ Brooks and cares for Harold. Grace is $67$ years old

and her Net Income For Tax Purposes is $$7,500.$ Grace refused to take any payments for

caring for Harold as she received a large inheritance in the previous year. As a result, Mr$.$

Brooks did not pay any child care or attendant costs for Harold.

$7.$ Mr$.$ Brooks contributed $$3,000$ to his RRSP in $2023$ and his RRSP deduction limit for $2023$ is

$$34,000.$

$8.$ Mr$.$ Brooks paid the following eligible medical costs:

For Himself $ $9,300$

For Harold $2,450$

For Grace $1,265$

Total $$13,015$

Required: Using Excel, calculate, for the $2023$ taxation year, Mr$.$ Brooks$$ minimum Taxable

Income and Federal Tax Payable $($Refund$).$ Ignore provincial income tax.