Ted is 30 years old and happily married to Tanya, age 35. Since June 2019, he was employed as a financial analysis at ABC company and earned $78,000 from the date of hire until the end of 2019. He contributed the maximum amount to CPP and EI ($2,748 and $860 respectively).

Earlier in the year, Ted was in between jobs so he received Employment insurance benefits of $12,000. His also was fortunate to receive $50,000 from his grandmother who left him money in her will when she died. He also withdrew $6,000 from his RRSP

Tanya attended school full time in 2019 so she could complete her Masters of Nursing. She took an unpaid leave from her job in February so that she could do this. As such she only earned net income of $4,000 in 2019. Her tuition fees were $35,000 and she is willing to transfer the maximum amount to Ted for this taxation year.

Ted and Tanya are generous with their giving to charities. They donated $3,800 to the Canadian Cancer Society and $1,500 to the Hospital for Sick Children. As a family, they incurred eligible medical expenses of $4,600.

Required:

Calculate Ted's

a) Net Income for tax purposes for 2019

b) Taxable Income

c) Taxes Payable after non-refundable tax credits.

Use your schedule of non refundable tax credits to help with base amounts. Show your calculations.