80.2K

Verified Solution

Link Copied!

Assignment #$1-$ Chapter Review Problem $71.$

Read the information below and follow the instructions.$$

Taxpayer Information:

Taxpayer #$1$

Name:

Keith Dox

SIN:

$805127115$

DOB:

August $13,1989$

Marital status:

Married

Address:$$

$18$ Page Place, Your City, YP$,$ X$0$X $0$X$0$

Note: use a postal code applicable to your province $($YP$)$

Phone number:

$($XXX$)369-7851$

Note: use an area code applicable to your province $($YP$)$

Email address:

kdox$12345$@rogers.ca

Taxpayer #$2$

Name:

Katie Dox

SIN:

$805127123$

DOB:

March $3,1990$

Keith Dox lives with his wife, Katie. Katie's net and taxable income is $$34,000.$ Her income consists of one T$4$ and $$4,500$ in tips.$$ She has already filed her own return.

Keith and Katie sold their original home located at $216$ Bayfield Street, Your$$City$,$ YP$,$ X$7$X $7$X$7,$ for $$400,000$ on March $31,2023,$ before moving into their new home a few blocks away at their current address. They had purchased the house on Bayfield Street together in $2018$; they lived exclusively at that address and had not owned any other residential property during the time they owned that home. Neither Keith nor Katie changed employment last year; they moved simply because they liked the new house.

Keith has a Tangerine investment account which pays him interest. He never received an information slip but was able to total up the $$20\mathrm{.}30$ interest he received last year from Tangerine. Keith receives income each year on a T$3$slip from a trust that was set up by his father. Keith also has a Royal Bank savings account to which he contributes $25\%$ of the funds, and Katie contributes the remaining $75\%.$

In $2018,$ Keith inherited a bank account in the US with a balance of US$$$$120,000$ from his uncle. At that time, the exchange rate was $1\mathrm{.}2535.$ He neither contributed nor withdrew any amounts from this account. According to the $2023$ bank statements, the account had a balance of US$$$$124,000$ on January $1$st$$and US$$$$125,240$ on December$31$st$.$ The bank statements also show that the only credits on this account are for monthly interest payments. For $2023,$ the annual average exchange rate was $1\mathrm{.}3497.$ Keith is not a US Citizen. He does not need to file a US return.

In late $2021,$ Keith bought $10$ shares of Metro Inc.$$ Keith received four dividend payments in $2023,$ each payment being $$2\mathrm{.}75,$ for a total of $$11\mathrm{.}00.$ He did not receive a slip for this income, and Metro Inc. is a Canadian corporation that issues eligible dividends.$$ Keith still has these shares and does not plan on selling them in the near future.$$ He has a $$25$ receipt for management fees and$$a $$75$ receipt for investment counsel fees.$$

Keith always donates $$300$ each summer to the Terry Fox Foundation, which is a charitable organization registered with the Canada Revenue Agency.$$ Keith wants to claim his donation each year versus saving for a future year.$$ This year, Keith made a $$200$ political contribution to the federal Liberal Party of Canada, for which he has an official receipt.

Keith$$s T$4$ and other information slips are reproduced below. Last year Keith received a tax refund of $$1,000,$ including $$8\mathrm{.}50$ interest on the refund. He is hoping for a refund again this year.

Keith is a Canadian citizen and he wants to answer $$Yes$$ to the Elections Canada question. He has signed up for My Account, and would like to register for online mail.

Keith lives within a Census Metropolitan Area in your province. $($YP$)$

img:$7\_1\_1$

BC: $6,566$; AB: $7,254$; SK: $7,762$; MB: $8,760$; ON: $7,039$; NB: $8,080$;

NS: $8,906$; PE: $8,721$; NL: $8,363$; YT: $6,607$; NT: $6,549$; NU: $5,876$

img:$7\_1\_2$

img:$7\_1\_3$

Instructions:$$

$1.$ Manually complete Keith's tax return including all required schedules and forms, using the fillable forms package.$$

$2.$ As part of this assignment, also complete Step $5$ Part A for Katie's tax return $($for her taxable income of $$34,000).$

$3.$ Save these forms on your computer.$$

$4.$ Log in to uLearn to answer the questions in your transcript.$$The assignment asks questions about the completed return, and there is a mix of multiple choice and numeric fill$-$in$-$the$-$blank questions $($i$.$e$.$ asking for values from specific lines of the tax return$).$You will have limited time to complete the assignment once you open it$,$ so it is important to complete the steps above before you start.

uLearn Fill in the blank instructions.

When entering the numbers, the dollar symbol $($$$)$ is never to be used. All entries must be entered as numbers with the correct use of commas $(,)$ and decimal point, and need to be entered to exactly two decimal places.$$

All answers must be properly rounded to two decimal places to be marked correct. $($i$.$e$.$ even if an answer is off by only a penny, it is wrong.$)$ See the learning guide for more detail.

Answer & Explanation Solved by verified expert

See Answer