Margarita Dalvi is a financial analyst employed by a large public company with gross revenues of...

 

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Margarita Dalvi is a financial analyst employed by a large public company with gross revenues of $295 million. Her salary in 2023 is $143,000; none of which is commission income. Her employer does not require that she pay any travel or other expenses. In addition, she was awarded an incentive bonus of $34,500. Two-thirds of this bonus was received in 2023, with the balance to be received in September 2024. Ms. Dalvi's employer withheld the following amounts from her earnings: El premiums: $1002 CPP contributions: $3754 RPP. contributions: $6400 Federal income tax: $29000 Contributions to United Way: $4000 Professional association des: $1200 Ms. Dalvi is 55 years old and is married to Jonathan Dalvi, who has been legally blind since an automobile accident that occurred several years ago. Jonathan turned 65 years of age in December 2023. His only income in 2023 is income from investments of $7,200. The couple has three children: Martha is 15 years old. She has 2023 net income from various part-time jobs of $11,000. Mary is 19 years old and struggles with mental health issues that prevent her from working on a full-time basis. She lives with her mother and father and has $4,800 of income from part-time employment in 2023. Mark is 21 years old and attends university on a full-time basis for 10 months of the year. His tuition fees were $9,400 and paid for by Ms. Dalvi. As he has no income of his own, he has agreed to transfer the maximum tuition amount to his mother. His tuition fees were $9,400 and paid for by Ms. Dalvi. As he has no income of his own, he has agreed to transfer the maximum tuition amount to his mother. The family's 2023 medical expenses, all of which were paid by Ms. Dalvi, were as follows: . Ms. Dalvi and her husband: $ 6,200 Martha: $1,800 Mary: $11,300 Mark: $2,500 Other Information: 1. Ms. Dalvi is provided with an automobile by her employer. The automobile is leased at a rate of $728 per month, including HST. The lease payment includes $50 per month for insurance coverage. In 2023, the automobile will be driven 57,000 kilometers, of which 42,000 were for employment purposes and 15,000 were for personal use. The automobile was used by Ms. Dalvi for 11 months of 2023. She was required to return the automobile to her employer's premises during the month she did not use it. 2. In 2023, Ms. Dalvi spent $14,800 on employment-related meals and entertainment with clients at local establishments. Her employer reimbursed $9,500 of these expenses. She estimates that $3,900 of the expenses were for her own meals. 3. Throughout their marriage, the Dalvis have always lived in rented premises, but they decide to purchase a four-bedroom bungalow in the same neighborhood for $672,000 on July 1, 2023. On this date, her employer provides Ms. Dalvi with a $250,000 interest-free loan that will facilitate the purchase. However, the balance must be paid in full on July 1, 2028. Assume that the prescribed interest rate is 1% throughout 2023. 1. In 2023, Ms. Dalvi receives several gifts from her employer: As is the case for all of her employer's senior staff, she receives a $400 gift certificate on her birthday that can be used for merchandise at a local clothing store. The gift certificate cannot be converted to cash. In recognition of 10 years of continuous service, she received a smart watch with a retail value of $1,200. This is the first time she has received an anniversary gift. At Christmas all employees of her employer receive a gift basket containing gourmet food items. The retail value of this basket is $300. 1. Ms. Dalvi received stock options to purchase 1,200 shares of her employer's stock at a price of $37 per share in February 2021. At the time the options were granted, the FMV of the shares was $40 each. In July 2023, when the shares were trading at $45 per share, Ms. Dalvi exercised all of the options. She continues to own the shares as of December 31, 2023. 1. The professional dues relate to maintaining her professional status, which is a condition of her employment. Required: Determine Ms. Dalvi's 2023 minimum net income, Ms. Dalvi's 2023 minimum taxable income, Ms. Dalvi's 2023 federal income tax payable or refund. Margarita Dalvi is a financial analyst employed by a large public company with gross revenues of $295 million. Her salary in 2023 is $143,000; none of which is commission income. Her employer does not require that she pay any travel or other expenses. In addition, she was awarded an incentive bonus of $34,500. Two-thirds of this bonus was received in 2023, with the balance to be received in September 2024. Ms. Dalvi's employer withheld the following amounts from her earnings: El premiums: $1002 CPP contributions: $3754 RPP. contributions: $6400 Federal income tax: $29000 Contributions to United Way: $4000 Professional association des: $1200 Ms. Dalvi is 55 years old and is married to Jonathan Dalvi, who has been legally blind since an automobile accident that occurred several years ago. Jonathan turned 65 years of age in December 2023. His only income in 2023 is income from investments of $7,200. The couple has three children: Martha is 15 years old. She has 2023 net income from various part-time jobs of $11,000. Mary is 19 years old and struggles with mental health issues that prevent her from working on a full-time basis. She lives with her mother and father and has $4,800 of income from part-time employment in 2023. Mark is 21 years old and attends university on a full-time basis for 10 months of the year. His tuition fees were $9,400 and paid for by Ms. Dalvi. As he has no income of his own, he has agreed to transfer the maximum tuition amount to his mother. His tuition fees were $9,400 and paid for by Ms. Dalvi. As he has no income of his own, he has agreed to transfer the maximum tuition amount to his mother. The family's 2023 medical expenses, all of which were paid by Ms. Dalvi, were as follows: . Ms. Dalvi and her husband: $ 6,200 Martha: $1,800 Mary: $11,300 Mark: $2,500 Other Information: 1. Ms. Dalvi is provided with an automobile by her employer. The automobile is leased at a rate of $728 per month, including HST. The lease payment includes $50 per month for insurance coverage. In 2023, the automobile will be driven 57,000 kilometers, of which 42,000 were for employment purposes and 15,000 were for personal use. The automobile was used by Ms. Dalvi for 11 months of 2023. She was required to return the automobile to her employer's premises during the month she did not use it. 2. In 2023, Ms. Dalvi spent $14,800 on employment-related meals and entertainment with clients at local establishments. Her employer reimbursed $9,500 of these expenses. She estimates that $3,900 of the expenses were for her own meals. 3. Throughout their marriage, the Dalvis have always lived in rented premises, but they decide to purchase a four-bedroom bungalow in the same neighborhood for $672,000 on July 1, 2023. On this date, her employer provides Ms. Dalvi with a $250,000 interest-free loan that will facilitate the purchase. However, the balance must be paid in full on July 1, 2028. Assume that the prescribed interest rate is 1% throughout 2023. 1. In 2023, Ms. Dalvi receives several gifts from her employer: As is the case for all of her employer's senior staff, she receives a $400 gift certificate on her birthday that can be used for merchandise at a local clothing store. The gift certificate cannot be converted to cash. In recognition of 10 years of continuous service, she received a smart watch with a retail value of $1,200. This is the first time she has received an anniversary gift. At Christmas all employees of her employer receive a gift basket containing gourmet food items. The retail value of this basket is $300. 1. Ms. Dalvi received stock options to purchase 1,200 shares of her employer's stock at a price of $37 per share in February 2021. At the time the options were granted, the FMV of the shares was $40 each. In July 2023, when the shares were trading at $45 per share, Ms. Dalvi exercised all of the options. She continues to own the shares as of December 31, 2023. 1. The professional dues relate to maintaining her professional status, which is a condition of her employment. Required: Determine Ms. Dalvi's 2023 minimum net income, Ms. Dalvi's 2023 minimum taxable income, Ms. Dalvi's 2023 federal income tax payable or refund.