You had T4 income from ABC Company as follows for 2020: Gross $130,000; CPP deducted - $700,
Question:
You had T4 income from ABC Company as follows for 2020: Gross $130,000; CPP deducted - $700, EI deducted $745, union dues - $320.RPP deductions - $12,000; Taxes deducted $33,000
You also received a T4A indicating another income of $7,000.
You have contributed 18,000 towards your RRSP during the current year, all of which are deductible in 2020.
CPP benefits received - 7,000. No taxes were withheld.
Received a T5 for $3,600 for interest earned from RBC. You also incurred interest expenses of $2,800 to earn the interest income.
On July 1, 2020, you started a business called "My Own Business". Your annual business revenue is $90,000 and your total expenses are as follows: Rent $18,000; Salaries 43,000; Transportation - 7,000 and Supplies $14,000.
In addition, a new automobile was purchased on August 1 for $25,000.(Class 10 - 30%)
Equipment #1 was also purchased on August 15 for 70,000.
In Dec 2020, Equipment #2 was purchased for $60,000 while Equipment #2 was sold for $50,000.
During the year, you made $13,250 of Donation to United Way and your quarterly installments for 2020 totaled $20,000.
Calculation of taxes