Homework answers / question archive / Question #4Andrew Brock operates an unincorporated business which, in most years, has been very successful, producing a netbusiness income of more than $200,000 per year

Question #4Andrew Brock operates an unincorporated business which, in most years, has been very successful, producing a netbusiness income of more than $200,000 per year

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Question #4Andrew Brock operates an unincorporated business which, in most years, has been very successful, producing a netbusiness income of more than $200,000 per year.  However, in 2019, due to some very bad inventory decisions, hisgross revenues are only $125,000 which result in net business income for tax purposes of $24,000.  Andrew has noother source of income during 2019.During  a   slack   period   of   business   activity,   Andrew   enrolled   in   an   organizational  behaviour   course   at   a  localuniversity.  The course lasted 7 weeks and required a minimum of 12 hours of work each week.His wife, Andrea Brock is an accountant for a large publicly traded company.   For 2019, her Taxable  Incomeincludes the following amounts:Gross Salary $ 92,300 Registered Pension Plan Contributions (   4,000)Fees For Preparing Tax Returns For Friends And Family 12,700 Stock Option Benefit 4,100 Taxable Capital Gains 8,500 Interest Income 7,200 Taxable Income $120,800 In January of 2019, as the result of a serious snowboarding accident, Andrea was hospitalized for a period of oneweek.  Subsequent to her release, she was in a wheel chair for an additional 6 weeks.  A doctor has certified that,during this 7 week period, Andrea was not capable of caring for her children.During 2019, the couple incurred actual child costs of $350 per week for 50 weeks. During the remaining two weeksof the year, the couple arranged their schedules so that they could provide their own child care.Required:   Determine the maximum amount that can be deducted by Mr. and Mrs. Brock for the year endingDecember 31, 2019 for child care expenses under the following assumptions:A. They have two children, neither of whom qualify for the disability tax credit.  The children are 2 and 12 yearsold.B. They have three children.  Their ages are 2, 4, and 12 years old.  The 2 year old is sufficiently disabled that hequalifies for the disability tax credit.Ms. Fortune has business income of $62,000, all of which she reports.  The child care costs for the current year, allpaid for by cheque and properly documented for tax purposes, total $11,200.  Determine the maximum deduction for child care costs and indicate who should claim them