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Navjit Bolina is single and a full-time employee but she is also pursuing her Master of Business Administration degree at a local university. She is employed as a manager with public company in Toronto Ontario since 2015.

Her financial transactions for the 2022 taxation year are shown below:

1) Navjit receives gross annual salary of $108,500, and the last paystub in the year 2022 shows the following amounts withheld by his employer:

Income tax$20,000Canada Pension Plan (enhanced contribution $461)3,500Employment insurance953Donation900

2) The company does not have any registered pension plan. However, the company does match the RRSP contribution made by its management staff. For the year of 2022, Navjit contributed $4,300 to his RRSP and her company matched and contributed $4,300 to Navjits RRSP as well.

3) During the year, Navjit was able to secure a major client for the company. As a result, the company awarded a painting to Navjit. The paintings value was estimated to be $800.

4) Navjit also owns 2 rental properties and she gathered the following information

• Total gross rental income: $32,900
• Expenses (exclude CCA): $26,500
• Maximum CCA from the rental properties: $8,000

5) Navjit has made invested stocks in several Canadian public corporation. Overall, she received $5,000 in dividends. She also sold some of the stocks which she bought 2 years ago. The proceed of the stocks were $20,000 but the cost was $7,400.

6) Navjit also disposed some of her personal items in 2022:

ProceedCostJewelry $1,800$600Stamps2,000800

7) Navjit always maximize her contribution to the TFSA and for the year 2022, the TFSA account earns $5,300 interest income from the GIC investment. During the year, she has withdrawn $10,000.

8) To fund her study, she borrowed money her line of credit. For the year 2022, she has paid $12,000 for her tuition and she paid $3,000 interest for using her line of credit.

9) 2022 was Navjits lucky year, since she won a lottery draw and was awarded $50,000

10) Navjit started to volunteer as a firefighter. Based on her record, she volunteered 120 hours in year 2022.

11) She has the following unused losses carryforward:

• Listed personal property loss carryforward of $400
• Net capital loss of $5,600

Required:

Part 1

For the 2022 taxation year, determine the following for Ayden:

• Net income for tax purposes
• Taxable income
• Federal tax liability

Part 2

Explain any omitted items as income, deduction, and/or credits