Homework answers / question archive / Canadian Taxation Profile Assignment #1 Family: Mabel Mounssey, SIN 499499499 Address: 150 Humber College Blvd, Etobicoke Ontario M1M1M1 Phone number 416-675-6622 She has no foreign income She has not sold a principal residence during the year                                Bruce Mounssey, SIN 994994994     Same address and phone number                Mabel was born on Jan 15,1980 and is employed in production work by a large public company

Canadian Taxation Profile Assignment #1 Family: Mabel Mounssey, SIN 499499499 Address: 150 Humber College Blvd, Etobicoke Ontario M1M1M1 Phone number 416-675-6622 She has no foreign income She has not sold a principal residence during the year                                Bruce Mounssey, SIN 994994994     Same address and phone number                Mabel was born on Jan 15,1980 and is employed in production work by a large public company

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Canadian Taxation Profile Assignment #1

Family:

Mabel Mounssey, SIN 499499499

Address: 150 Humber College Blvd, Etobicoke Ontario M1M1M1

Phone number 416-675-6622

She has no foreign income

She has not sold a principal residence during the year

 

                             Bruce Mounssey, SIN 994994994     Same address and phone number

 

             Mabel was born on Jan 15,1980 and is employed in production work by a large public company.Her      annual salary is $85,500 in 2020, none of which involves commissions. As the company was very    successful during 2020, Mabel has been provided with a $10,000 bonus. This bonus was paid $5,000 in            December 2020, and the rest in February 2021.

 

                         Mabel's employer withheld maximum EI premiums and CPP contributions, along with $15,000 in federal income taxes. Other amounts withheld by her employer are as follows:

                                    CPP/EI                                                                                       max

                           

                               RPP Contributions                                                       $4,300

                               Union Dues                                                                        450

 

 Mabel's spouse is Bruce. Bruce was born on Feb 5, 1975 and is legally blind. Bruce has 2020 income from  investments of $750.

 

     Mabel and Bruce have three sons. Information on these sons is as follows:

 

               Dareen,  Birth date Mar 3, 2005, in good health, and has income from part time jobs of $6,500.      Daniel     Birth date Apr 8, 2002 and has serious breathing problems that prevent him fromworking    on a full time basis.         He has got a doctor’s letter attesting that his condition is serious but hedoes not         have a “marked” restriction of daily activities. He lives with Mabel and Bruce and has income from   part time jobs of $4,000.  He attends university on a full time basis for 8 months of theyear. He would like to transfer his tuition credit to Mabel.

            Derek Birthdate May 15, 2000 He lives at home and is in good health.  He has a full time job, and          earns $30,000 per year.

 

                        Other Information:                                                                         

                        1 . During 2020, Mabel spent $12,300 on employment related meals and entertainment with clients of her employer. Her employer reimbursed $6,150 of these costs.

 

2. During 2020, Mabel makes her regular annual contribution of $2,000 to a registered charity, The

Shepherds Of No Hope. (Mabel is a very pessimistic individual.)

 

3. The family's 2020 medical expenses, all of which were paid by Mabel, were as follows:

 

                           

 

 

4. Mabel received options to purchase 500 shares of her employer's stock at a price of $45 per share 2years   ago. At the time the options were granted, the market price of the shares was $45 per share. During July,

                        2020, when the shares are trading at $60 per share, Mabel exercises all of these options. She is stillholding these shares on December 31, 2020.   

 

5. Mabel is provided with an automobile by her employer. The automobile was purchased at a cost of

$55,200, including HST at 13 percent. During 2020, the automobile is driven 48,000 kilometers, of which             37,000 were employment related. The automobile was used by Mabel for 11 months during 2020. She was     required to return the automobile to her employer's garage during the month that she did not use it.

 

Mabel and Bruce                                     Darren                                     Daniel                                     Derek

$ 2,200  1,700 10,600  4,500

6. During 2020, Mabel receives several gifts from her employer:

• In recognition of her 10 years of service, Mabel receives an engraved wrist watch. The retail value ofthis watch is $700.     
• At Christmas, all of the company's employees receive a gift box of vintage wines. The retail value ofthese wines is $400.

 

Required:

1. Create a profile file, for Mabel.        
2. Determine Mabel's minimum Net Income and taxable income for the 2020 taxation year.
3. Based on your answer in Part B, determine Mabel's federal Tax Payable and amount owing(refund)             for the 2020 taxation year.          
4. In order to submit this assignment,  first of all save the file!!   Then, you must create a PDF file (you should either be able to Save as PDF, or print to PDF.   Do not submit the file as a Profile file.
5. Email this file to me thru Blackboard.