travel expenses or to perform employment duties away from her employer's place of business. View the information about Lu's family. View the other information. Read the requirements Requirement A. Determine Lu's minimum 2022 net income. (For entries with a $0 balance, make sure to enter "0" in the appropriate input field. Round your answers to the nearest whole dollar.) Salary Add: Bonus Stock option benefit Automobile benefit Gifts Interest-free loan benefit Deduct: RPP contributions Professional dues Client meals and entertainment Employment income Requirement B. Determine Lu's minimum 2022 taxable income. (Round your answers to the nearest whole dollar.) Employment income Deductible CPP Net income and taxable income Requirement C. Based on your answer in Requirement B, determine Lu's federal 2022 income tax payable. (Round your answers to the nearest whole dollar.) Tax on first $50,197 Tax on remaining taxable income Tax before credits Basic personal amount Spousal Caregiver-Melinda Transfer of tuition First-time home buyers' plan El Premiums CPP Contributions Canada employment tax credit Medical expenses Credit base Tax credits Charitable donations Federal income tax payable Other Information 1. To reward Lu for her outstanding work, her employer has awarded her a bonus of $10,500. Of this total, $4,010 will be paid on January 15,2023 , with the remaining $6,490 payable in 2026 . 2. In August 2021, Lu received options to purchase 200 of her employer's shares at a price of $68 per share. At the time the options were granted, the FMV of the shares was $70 per share. In May 2022, when the shares had a FMV of $91 per share, Lydia exercised all of these options. She still owns all of the stock option shares on December 31, 2022. 3. Lu is provided with an automobile by her employer. The automobile was leased on February 1,2022, at a monthly rate of $567, which includes a monthly payment for insurance of $71. The automobile is driven a total of 35,700 kilometres, 32,100 of which were used for employment purposes and 3,600 for personal use. It was available to her from February 1 to the end of the year. The employer did not provide an automobile during the month of January. 4. In 2022, Lu spent $5,200 on employment-related meals and entertainment with clients of her employer in the immediate vicinity of her employer's business. Her employer reimbursed $2,920 of these costs. It was estimated that the remaining $2,280 of expenses were for Lu's own meals. 5. In 2022, Lu receives several gifts from her employer. - As is the case for all of the company's employees, Lu receives a $110 gift certificate that can be used for merchandise at a local shopping mall. - In recognition of her 10 years of service, Lu receives a beautiful Visconti fountain pen she has been wanting. The retail value of this pen is $1,050. - At Christmas, all of the company's employees receive a gift basket of holiday treats. The retail value of these gift baskets is $210. 6. After years of accumulating savings and living in rental accommodations, Lu and Mason purchase a home. The cost of the home is $382,000 and, to assist with the purchase, Lu's employer provides a $110,000 interest-free loan. The loan was received on May 1, 2022, and will have to be repaid on April 30, 2027. Assume the prescribed rate is 3% throughout 2022 . 7. Because of the nature of her employment, Lu is required to pay annual professional dues of $360, none of which is reimbursed. In 2022, Lu makes a contribution of $1,990 to a registered charity. 8. Lu's employer provides all employees with a private health care plan. It reimburses employees for 50% 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 2022 medical expenses, all of which were paid by Lu, were as follows. Lu-Prescriptions Lu-Botox Treatments Mason-Dentist fees for three root canals Mason-Hair replacement procedures Beau-Dentist fees, including $975 for a tooth replacement Melinda-Doctor fees for treatment for depression Melinda-Prescription medications Melinda-Liposuction treatment for her upper arms Hunter-Physiotherapy Hunter-Fees for prescription glasses and contact lenses $,600 1,375 7,210 3,720 2,060 8,500 3,930 4,240 1,495 2,150 Done Lu's family Lu's husband, Mason, is the beneficiary of a trust. Mason's mother was extremely wealthy and when she died, she left her estate to a trust for her children and her grandchildren. Mason will eventually inherit much of the estate. As a result, he no longer works and devotes much of his time to volunteer work. His net income for 2022 is $8,550. All of this income is received from the trust. The couple have three children aged 15,20 , and 22 who live with them. The 15-year-old, Beau, is in good health and has 2022 net income of $9,100, all of which is from the trust. The 20-year-old, Melinda, is dependent on her family because of mental health issues. However, she does not qualify for the disability tax credit. Her net income for 2022 is $3,300, all of which is received from the trust. The 22-year-old, Hunter, attends university on a full-time basis in Vancouver for eight months of the year. Lu pays his tuition of $11,600, his textbooks cost $1,500, and his residence fees are $7,950. Hunter's net income for 2022 is $15,600, all of which is received from the trust. He has agreed to transfer the maximum tuition amount to Lu. Required A. Determine Lu's minimum 2022 net income. B. Determine Lu's minimum 2022 taxable income. C. Based on your answer in Requirement B, determine Lu's federal 2022 income tax payable. travel expenses or to perform employment duties away from her employer's place of business. View the information about Lu's family. View the other information. Read the requirements Requirement A. Determine Lu's minimum 2022 net income. (For entries with a $0 balance, make sure to enter "0" in the appropriate input field. Round your answers to the nearest whole dollar.) Salary Add: Bonus Stock option benefit Automobile benefit Gifts Interest-free loan benefit Deduct: RPP contributions Professional dues Client meals and entertainment Employment income Requirement B. Determine Lu's minimum 2022 taxable income. (Round your answers to the nearest whole dollar.) Employment income Deductible CPP Net income and taxable income Requirement C. Based on your answer in Requirement B, determine Lu's federal 2022 income tax payable. (Round your answers to the nearest whole dollar.) Tax on first $50,197 Tax on remaining taxable income Tax before credits Basic personal amount Spousal Caregiver-Melinda Transfer of tuition First-time home buyers' plan El Premiums CPP Contributions Canada employment tax credit Medical expenses Credit base Tax credits Charitable donations Federal income tax payable Other Information 1. To reward Lu for her outstanding work, her employer has awarded her a bonus of $10,500. Of this total, $4,010 will be paid on January 15,2023 , with the remaining $6,490 payable in 2026 . 2. In August 2021, Lu received options to purchase 200 of her employer's shares at a price of $68 per share. At the time the options were granted, the FMV of the shares was $70 per share. In May 2022, when the shares had a FMV of $91 per share, Lydia exercised all of these options. She still owns all of the stock option shares on December 31, 2022. 3. Lu is provided with an automobile by her employer. The automobile was leased on February 1,2022, at a monthly rate of $567, which includes a monthly payment for insurance of $71. The automobile is driven a total of 35,700 kilometres, 32,100 of which were used for employment purposes and 3,600 for personal use. It was available to her from February 1 to the end of the year. The employer did not provide an automobile during the month of January. 4. In 2022, Lu spent $5,200 on employment-related meals and entertainment with clients of her employer in the immediate vicinity of her employer's business. Her employer reimbursed $2,920 of these costs. It was estimated that the remaining $2,280 of expenses were for Lu's own meals. 5. In 2022, Lu receives several gifts from her employer. - As is the case for all of the company's employees, Lu receives a $110 gift certificate that can be used for merchandise at a local shopping mall. - In recognition of her 10 years of service, Lu receives a beautiful Visconti fountain pen she has been wanting. The retail value of this pen is $1,050. - At Christmas, all of the company's employees receive a gift basket of holiday treats. The retail value of these gift baskets is $210. 6. After years of accumulating savings and living in rental accommodations, Lu and Mason purchase a home. The cost of the home is $382,000 and, to assist with the purchase, Lu's employer provides a $110,000 interest-free loan. The loan was received on May 1, 2022, and will have to be repaid on April 30, 2027. Assume the prescribed rate is 3% throughout 2022 . 7. Because of the nature of her employment, Lu is required to pay annual professional dues of $360, none of which is reimbursed. In 2022, Lu makes a contribution of $1,990 to a registered charity. 8. Lu's employer provides all employees with a private health care plan. It reimburses employees for 50% 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 2022 medical expenses, all of which were paid by Lu, were as follows. Lu-Prescriptions Lu-Botox Treatments Mason-Dentist fees for three root canals Mason-Hair replacement procedures Beau-Dentist fees, including $975 for a tooth replacement Melinda-Doctor fees for treatment for depression Melinda-Prescription medications Melinda-Liposuction treatment for her upper arms Hunter-Physiotherapy Hunter-Fees for prescription glasses and contact lenses $,600 1,375 7,210 3,720 2,060 8,500 3,930 4,240 1,495 2,150 Done Lu's family Lu's husband, Mason, is the beneficiary of a trust. Mason's mother was extremely wealthy and when she died, she left her estate to a trust for her children and her grandchildren. Mason will eventually inherit much of the estate. As a result, he no longer works and devotes much of his time to volunteer work. His net income for 2022 is $8,550. All of this income is received from the trust. The couple have three children aged 15,20 , and 22 who live with them. The 15-year-old, Beau, is in good health and has 2022 net income of $9,100, all of which is from the trust. The 20-year-old, Melinda, is dependent on her family because of mental health issues. However, she does not qualify for the disability tax credit. Her net income for 2022 is $3,300, all of which is received from the trust. The 22-year-old, Hunter, attends university on a full-time basis in Vancouver for eight months of the year. Lu pays his tuition of $11,600, his textbooks cost $1,500, and his residence fees are $7,950. Hunter's net income for 2022 is $15,600, all of which is received from the trust. He has agreed to transfer the maximum tuition amount to Lu. Required A. Determine Lu's minimum 2022 net income. B. Determine Lu's minimum 2022 taxable income. C. Based on your answer in Requirement B, determine Lu's federal 2022 income tax payable