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THIS QUESTION FOLLOWS THE CANADIAN INCONE TAX

PRACTICE PROBLEM 8.9: PDF Ms. Zheng Yiu has the following sources of income in the current year: Net Employment Income 112,345 3,500 Non-eligible dividend (actual amount) Taxable Capital Gains 2,500 Other foreign investment income $ 5,000 The other foreign investment income noted above, is the gross income earned and has been translated into Canadian dollars. The foreign jurisdiction withheld tax of $750 on this income (the net income received by Zheng was $4,250). In addition, Ms. Yiu has a non-capital loss carryforward from the previous year of $5,000 and a net capital loss carryover of $3,000. Ms. Yiu is 47 years old and is married to Mr. Yiu (49 years old, who has net income of $5,600) and they have two children (ages 15 and 19). Due to an unfortunate car accident, the 15-year-old son is confined to a wheelchair. The rest of the family is in good health. During the year, Ms. Yiu incurred the following expenses: Donation to registered charity (Canadian Cancer Society) $ 1,500 Eyeglasses for one child (age 19) $ 2,500 Prescription medication for Mr. & Ms. Yiu $ 1,750 Dentist for Mr. Yiu $ 1,100 Contribution - Liberal Party of Canada 250 Other Information: 1. The 19-year-old went to MacEwan University for 8 months. His taxable income was $15,000, which consisted of employment income only. Tuition paid was $4,300. Textbooks for the year cost $800. He is willing to share his unused credits with his mother (Zheng). 2. Ms. Yiu paid $3,166 for C.P.P., $889 for E.I. and $9,550 for income taxes. Required: Calculate Zheng Yiu's net income for tax purposes (using S.3 ordering rules), taxable income as well as minimum federal tax payable. Show all calculations, and round your calculations to the nearest dollar.. SS $ $ $ $ es PRACTICE PROBLEM 8.9: PDF Ms. Zheng Yiu has the following sources of income in the current year: Net Employment Income 112,345 3,500 Non-eligible dividend (actual amount) Taxable Capital Gains 2,500 Other foreign investment income $ 5,000 The other foreign investment income noted above, is the gross income earned and has been translated into Canadian dollars. The foreign jurisdiction withheld tax of $750 on this income (the net income received by Zheng was $4,250). In addition, Ms. Yiu has a non-capital loss carryforward from the previous year of $5,000 and a net capital loss carryover of $3,000. Ms. Yiu is 47 years old and is married to Mr. Yiu (49 years old, who has net income of $5,600) and they have two children (ages 15 and 19). Due to an unfortunate car accident, the 15-year-old son is confined to a wheelchair. The rest of the family is in good health. During the year, Ms. Yiu incurred the following expenses: Donation to registered charity (Canadian Cancer Society) $ 1,500 Eyeglasses for one child (age 19) $ 2,500 Prescription medication for Mr. & Ms. Yiu $ 1,750 Dentist for Mr. Yiu $ 1,100 Contribution - Liberal Party of Canada 250 Other Information: 1. The 19-year-old went to MacEwan University for 8 months. His taxable income was $15,000, which consisted of employment income only. Tuition paid was $4,300. Textbooks for the year cost $800. He is willing to share his unused credits with his mother (Zheng). 2. Ms. Yiu paid $3,166 for C.P.P., $889 for E.I. and $9,550 for income taxes. Required: Calculate Zheng Yiu's net income for tax purposes (using S.3 ordering rules), taxable income as well as minimum federal tax payable. Show all calculations, and round your calculations to the nearest dollar.. SS $ $ $ $ es

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