Alan, aged 74, has the following income for the current year in retirement: CPP Retirement benefits:...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Alan, aged 74, has the following income for the current year in retirement: CPP Retirement benefits: $ 15,000 OAS RRIF income 7,700 TFSA Withdrawal 6,880 Registered Pension Plan benefits 60,000 2,000 Alan had a non registered portfolio that holds 100 shares of a public corporation. He disposed of the shares during this year and realized a capital gain of $18,000. Required: 1) Calculate Alan's taxable income for the current year (show your calculation) (4 marks) 2) Calculate the OAS clawback that will apply to Alan for the current year. Use the generic OAS threshold from text page 7B 3) Calculate Alan's basic federal tax payable for the current year. Only consider the basic personal tax credits as shown in the book. Ignore the provincial taxes. (Use generic tax rates and tax brackets 7B of chapter 2 (2 marks) Alan, aged 74, has the following income for the current year in retirement: CPP Retirement benefits: $ 15,000 OAS RRIF income 7,700 TFSA Withdrawal 6,880 Registered Pension Plan benefits 60,000 2,000 Alan had a non registered portfolio that holds 100 shares of a public corporation. He disposed of the shares during this year and realized a capital gain of $18,000. Required: 1) Calculate Alan's taxable income for the current year (show your calculation) (4 marks) 2) Calculate the OAS clawback that will apply to Alan for the current year. Use the generic OAS threshold from text page 7B 3) Calculate Alan's basic federal tax payable for the current year. Only consider the basic personal tax credits as shown in the book. Ignore the provincial taxes. (Use generic tax rates and tax brackets 7B of chapter 2 (2 marks)
Expert Answer:
Answer rating: 100% (QA)
Answer 1 To calculate Alans taxable income for the current year we need to add up all his income sources and then subtract any eligible deductions CPP Retirement benefits 15000 OAS 7700 RRIF income 68... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
Calculate 's net employment income for the current year in accordance with sections 5 to 8 of the Income Tax Act. Complete the table below with the salary and deductions amounts, and calculate the...
-
An entity has the following income for the current year: Operations .. $92,000 Tax-exempt interest income .. 19,000 Long-term capital gain .. 60,000 The entity has earnings and profits (AAA for an S...
-
The Poole Company reported the following income for 2014: Sales..................................................................$30,000 Cost of goods...
-
Find each product. (8 m)( + m)
-
Dinkle Manufacturing Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home...
-
The following information relates All three bonds are currently trading at par value. Which bond will most likely experience the greatest percentage change in price if the market discount rates for...
-
Create a table about the password policies enforced at the following: a. Your schools network b. Your schools email system c. Your personal email account (at Yahoo, Gmail, etc.) d. Your financial...
-
Milo Corporation's unadjusted trial balance at December 1, 2017, is presented below. The following transactions occurred during December. Dec. 2 Purchased equipment for $16,000, plus sales taxes of...
-
What are some things that can be taken from the "you feel....because..." method of communication?
-
You are a staff accountant preparing your first Form 1120 for your first client, SageGreen Computer Corporation. Your manager plans to review your prepared tax form each step of the way, starting...
-
You get a multi-million dollar grant from the government and design a study to monitor the movements of feral pigs across the Australian landscape using 24 hr per day monitoring using drones equipped...
-
Consider the downward from force of air on a horizontal piece of cardboard 1 m 2 . If the downward force is 1 . 0 *1 0 5 Pa 1 m 2 = 1 . 0 *1 0 5 N , what is the total mass of the air above the piece...
-
Niantic reported the following financial information ( amounts in millions ) . Current assets $ 1 2 , 9 6 0 Total assets 1 3 , 2 7 7 Current liabilities 1 , 0 8 0 Net sales 6 , 2 0 0 Net Income 2 6 6...
-
How does Google Chat Technology help increase communication when working in Virtual Teams? What are some limitations with using Information and Communication Technology ( Google GroupsLinks to an...
-
First, design NFAs to recognize the following regular languages, and then convert the NFAs to DFAs. (a) (a U b) abb(a U b)* (b) (((aa)* (bb)) U ab)* (c) (ab)*a(ba)* (d) (b(aaaaa) bb U bab) (e) Give a...
-
What checks should Tiffany's add to prevent similar thefts in the future? What inventory control techniques might be more effective?
-
4. For the following free-body diagrams, do the following Come up with a "story" that describes the situation. y th 13 x A) Fnet = 0 B) F air Fthrust F x net 13 W Fk n Fnet W x
-
Calculate Total Contribution Margin for the same items. Total Revenue Total Variable Costs Total Contribution Margin $50.00 a. $116.00 $329.70 b. $275.00 $14,796.00 $7,440.00 c. $40,931.25 d....
-
How many days would it take for Shelbys investment of $4300 to accrue $147 in interest if she is able to earn a rate of 1.25 percent?
-
What should you keep in mind when naming beneficiaries?
-
Adam and Heidi Larrsson were delighted when Adam landed a new job with a promotion and an increased salary, but disappointed to learn that he would not be eligible for group benefits for the first 90...
-
A pictorial or graphical representation of the overall flow of work, documents, and operations in an application system is shown in a(n) ( _____________ ). (a) IPO chart (b) forms distribution chart...
-
Which of the following items would be most useful in analyzing the separation of duties and functions in an application system? (a) document flowchart (b) program flowchart (c) HIPO chart (d) source...
-
An important omission from flowcharts and matrix techniques is ( ___________________ ). (a) the ability to represent decisions (b) the ability to include internal control considerations (c) the...
Study smarter with the SolutionInn App