[SOLVED] Ms. Isabelle Cardin had a tumultuous year in 2019. She broke | SolutionInn

Question: Ms. Isabelle Cardin had a tumultuous year in 2019. She broke her engagement early in the year and quit her job. She moved to a Ms. Isabelle Cardin had a tumultuous year in 2019. She broke her engagement early in the year and quit her job. She moved to a resort area to take a waitress job and to start up a fitness instruction business. She has had the following items correctly calculated and classified as either inclusions, deductions or tax credits for the purposes of determining her taxable income and federal tax.

Inclusions:

Benefit received from Employment Insurance Program - $600 Board and Lodging Provided by employer during busy season of resort - $8,000 Bonus from resort employer - $500 Business revenue from fitness instruction fees - $2,000 Gratuities as a waitress - $12,100 Interest on Canada Savings Bonds - $775 Rental Revenue - $6,000 Salary Received as a waitress - $12,000 Taxable Capital Gain - $3,750 Retiring Allowance from Previous Employer - $800 Deductions, Losses, and Tax Credits Allowable capital loss - $4,500 Capital cost allowance on fitness business equipment - $1,300 Capital cost allowance on rental building - $1,200 Charitable gifts tax credit - $26 Child Care Expenses - $1,800 Canada Pension Plan Contributions tax credits on employment earnings - $215 Medical Expenses tax credit - $9 Business expenses of earning fitness instruction fees - $900 Expenses of objection to a tax assessment - $65 Interest on funds borrowed to pay expenses of earning fitness instruction fees - $75 Maintenance on rental property - $1,100 Mortgage interest on rental property - $2,500 Moving Expenses - $1,700 Non-Capital Losses from previous year - $600 Personal Tax credit - $1,671 Property tax on rental property - $1,000 Employment Insurance Premiums tax credit - $92 Union Dues - $100 Canada Employment Credit - $169

You have been asked to:

(A) Determine the income, taxable income and basic federal tax based on the above correct information using the ordering rules in sections 3, 111.1, and 118.92. B) Cross-reference each amount to the appropriate section of the Act. Step by Step Solution

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There are 3 Steps involved in it DIVISION B SEC 3 PAR 3 A SUBDIVISION A EMPLOYMENT INCOME SEC 5 SALARY 12000 SEC 5 GRATUITIES 12100 S... View full answer Get step-by-step solutions from verified subject matter experts