This is for Canada Income Taxation system

Using the following information, determine Mr. Chin's

Taxable Income

minimum Federal Tax Payable for the year 2018.

For the tuition tax credit base, indicate any possible carry over amounts for Xavier.

Mr. N. Chin is the primary Controller of Caroline Corp, a company that specializes in the production and sale of fake thumbs.

His Net Employment Income for the year ended 2018 was $168,324.

oThe following have been taken into account in the calculation of his Net Employment Income:

o(1) Professional Dues to the "Fake Thumb Society of Canada", amounting to $100 paid by Mr. Chin.

o(2) In 2010, Mr. Chin was given options to buy 200 shares of Caroline Corp's stock at a price of 75$ per share. At the time the options were issued, the shares were trading at $70.

On January 1, 2018, Mr. Chin exercises the options. At the time of exercise, the shares were trading at $83. He is still holding the shares on December 31, 2018.

Mr. Chin, 66 years of age, lives with

his wife, Bianca, (who has Net Income For Tax Purposes of $5,000), 34 years of age,

and his eight children:

o(A) Xavier, 23 years old, Net Income For Tax Purposes: $3,660.

o(B) Erika, 21 years old, Net Income For Tax Purposes: $4,500.

o(C) Erica, 20 years old, Net Income For Tax Purposes: $6,000.

o(D) Louis-Philippe, 20 years old, Net Income For Tax Purposes: $3,600.

o(E) JuniorJunior, 14 years old, Net Income For Tax Purposes: $0.

o(F) Gianni, 15 years old, Net Income For Tax Purposes: $0.

o(G) Sebastian, 25 years old, Net Income For Tax Purposes: $52

o(H) Lucas, 9 years old, Net Income For Tax Purposes: $0

Mr. Chin followed the maximum CPP and EI claims and is thus eligible for its maximum tax credit.

During 2018, Mr. Chin also adopted a child, by the name ofMazri.

On January 14, 2018, Mr. Chin and his spouse took a trip to the adoption location in Pakistan to discuss their adoption options.

On March 17, 2018, they returned to pick up their new son and return him home to Canada.

During the adoption process,

ofees paid to the foreign adoption agency amounted to $500.

oLegal and administration fees to settle the adoption case

amounted to $67.

oThe following is a list of additional costs not including the

forementioned:

January 14, 2018 Trip$4,560

March 17, 2018 Trip$5,640

Document Translation Fees$230

The fees paid to the adoption agency (of $500) can be split

among the following:

Adoption Agency Fees 2017$250

Adoption Agency Fees 2018$250

During 2017, Mr. Chin adopted a sustainable lifestyle. Part of this mandate was to ensure that he, his wife, and his eight children used the bus as their primary means of transportation.

During that year, Mr. Chin could not locate his receipts and thus did not claim the public transit amount on his 2017 tax return. He has since located all his 2017 receipts and is prepared to claim them on this year's return.

He also possesses all necessary transit receipts for the year 2018. The following are the monthly transit costs incurred for each individual during 2017. Rate for 2018 increased linearly by 3%.

oMr. Chin$95

oMrs. Chin$95

oEach of Mr. Chin's Children$55

In line with his sustainable attitude, Mr. Chin promoted fitness and health in his home. As part of this initiative, he agreed to pay for any of his children's fitness costs.

As most of his children were occupied with other obligations, only two enrolled themselves in a fitness program.

It is important to note that theseprograms are considered eligible fitness programs for tax purposes.

The following were the breakdown of the yearly costs:

oErika: Swimming Lessons$600

oErica: Boxing Lessons$350

oOf the total swimming lesson cost, $150 is allocated to the cost of being transported to the venue.

During the last six years, Mr. Chin and his family lived in a 1 bedroom apartment. To accommodate a larger family (with the adoption of Mazri), Mr. Chin found a fitting opportunity to purchase his first home.

The cost of the home was $625,000.

Mr. Chin had donated $500 to the Canadian Cancer Society in 2017.

He had erroneously forgotten to claim the amount in the year of the donation because he could not find the appropriate donation receipt in his files. He has since located the appropriate document and wants to claim the amount this year, permitting it is legal and in accordance to ITA regulation.

During 2018, Mr. Chin donates $300 to each: the Political Party 1, The Conservative Party, and the Liberal Party. Ironically, he chose not to donate to the Green Party despite his "green initiatives".

Mr. Chin also lives with Christina, his 47-year-old paraplegic sister who qualified for the disability tax credit. Seeing as Christina has no income of her own, the regular Disability Credit can be transferred to Mr. Chin.

Of his eight children, Mr. Chin's son,Xavier, was the only one who pursued higher education.

He is a full time student at a University for 8 months per year.

Mr. Chin has paid Xavier's tuition for 2018 amounting to $6,700 and in return, Xavier has agreed to transfer the maximum credit possible to his father.

Mr. Chin paid the following medical costs during 2018:

For Himself$2,100

For His Wife$770

For Xavier$450

For Erika$350

For Louis-Philippe$200

For JuniorJunior$53

For Lucas$4500

oLucas's medical expenses of $4,500 are outlined as follows:

oPhysiotherapy$500

oX-Ray Premiums$500

oOxygen Tests$250

oPrescription Eyeglasses$250

oPrescription Drugs$3000

In addition to taking care of his sister Christina, Mr. Chin also houses his parents:

Philippe and Lillian, both 89 years of age.

They are both extremely health.

Their Net Income for Tax Purposes are outlined as follows for the year ended 2018:

oNet Income For Tax Purposes - Lillian$0

oNet Income For Tax Purposes - Philippe $15,537

REQUIRED: Determine Mr. Chin's Taxable Income as well as minimum Federal Tax Payable for the year 2018. For the tuition tax credit base, indicate any possible carry over amounts for Xavier.