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For the past 5 years, Mr. Brooks has been employed as a financial analystby a large Canadian public firm locatedin Winnipeg. In 2022, his basic gross salary amountsto $63,000. In addition, he was awardedan

$11,000 bonus based on the performance of his division.Of the total bonus, $6,500 was paid in 2022 and the remainder is to be paid on January 15, 2023

In 2022, Mr. Brooks'employer withheld the following amountsfrom his gross wages:

Federal Income Tax$3,000EI Premiums953CPP Contributions3,500RPP Contributions2,800Donations to a registered charity480Union dues240Payments for personal use of companycar1,000

Other Information:

1. Due to an airplane accident while flying back from Thunder Bay on business, Mr. Brooks was seriously injured and confined to a hospital for two full months of 2022. As his employer provides complete group disability insurance coverage, he received a total of $4,200 in payments during this period. All of the premiums for this insuranceplan are paid by the employer. The plan providesperiodic benefits that compensate for loss of employment income.

1. Mr. Brooks is provided with a car that the company leases at a rate of $678 per month, including both GST and PST. The companypays for all of the operating costs of the car and these amountedto $3,500 for 2022. Mr. Brooks drove the car a total of 35,000 kilometers in 2022, 30,000 kilometers of which were carefully documented as use for employment purposes and 5,000 for personal use. While he was in the hospital (see Item 1), his employer requiredthat the car be returnedto company premises.

1. On January 15, 2021, Mr. Brooks received options to buy 200 shares of his employer's common shares at a price of $23 per share. At this time, the shareswere trading at $20 per share. Mr. Brooks exercised these options on July 6, 2022, when the shares were trading at $28 per share. He does not plan to sell the shares for at least a year.

1. In order to assist Mr. Brooks in acquiringa home in Winnipeg, his employer grantedhim a five year, interestfree loan of $125,000. The loan was granted on October 1, 2022 and, at this point in time, the interest rate on open five year mortgages was 5%. Assume the prescribed interest on employee loans was 2% on this date and remained unchanged during the year. Mr. Brooks purchases a house for $435,000 on October 2, 2022. He has not owned a home during any of the preceding four years.

1. Other disbursements made by Mr. Brooks includethe following:

Advanced financial accounting course tuitionfees$1,200Music history coursetuition fees (University of Manitoba one week intensive course)600Fees paid to financial planner300Payment of premiums on life insurance642

Mr. Brooks'employer reimbursed him for the tuition fees for the accounting course,but not the music course.The reimbursement was not included as a taxablebenefit on his T4.

1. Mr. Brooks is a widower.His wife was killed in a car accident 2 years ago that injuredhis 8 year old son, Harold, so badly that he qualifies for the disability tax credit. Haroldhas no net income for the year.

1. Mr. Brooks' mother, Grace, lives with Mr. Brooks and cares for Harold. Grace is 67 years old and her net income is $7,500. Grace refused to take any payments for caring for Harold as she receiveda large inheritance in the previous year. As a result, Mr. Brooks did not pay any child care or attendant costs for Harold.
2. Mr. Brooks paid the following eligible medical costs: For Himself $ 9,300

For Harold 2,450

For Grace 1,265 Total $13,015

Required: Calculate Mr. Brooks'2022 employment income,net income, taxableincome and federalincome tax payable or refund.

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