Igor worked the entire year at Dauz Inc, a Canadian controlled private corporation based in St John's. Igor received $180,000 of salary in 2016. He was also awarded a bonus in December 2015 in the amount of $25,000 which was paid to him in January 2016. The company provided Igor with a car from February 1, 2016 to December 31 2016.

The car was leased for $750 per month. Igor drove a total of 10,000 km during the period and 4,000 km of these were for business. Dauz Inc. pays all the operating costs related to the vehicle and these amounted to $4,000 in 2016. Igor was given a stock option in 2015 which allowed him to purchase 3,000 shares of Dauz Inc. At the date the option was granted, the shares were trading at $15.00 per share. In late 2015, Igor exercised his option and purchased 1,000 shares at the option price of $17.50 per share. At the date the option was exercised, the shares of Dauz were trading for $23.50 per share. In November of 2016, Igor sold the 1,000 shares and realized proceeds of $52.50 per share on the disposition.

Igor was also a member of his employer pension plan which was a co-sponsored plan. Both Dauz Inc. and Igor contributed $5,000 to the pension plan in 2016.

The following amounts were withheld from Igor's pay in 2016:

CPP $2,544 EI $955 Income tax $20,000 Union dues $950

Self employment

Igor is a lover of opera. He has discovered that the reason opera is not as popular as musical theatre is the fact that a lot of people do not understand the story lines. In 2013, he decided to start a business that he called "Opera Cheats". Igor posts a 5 minute synopsis of well-known operas in a satirical manner. It has been quite successful and many of the large opera companies have signed on to his service. For the year ended December 31, 2016 the net B6120 Term income per the financial statements prepared in accordance with Generally Accepted Accounting principles was $200,000. Operating expenses deducted in arriving at this amount included the following: Depreciation and amortization $12,500 Golf club dues- approximately $50,000 of gross revenue earned on the golf course! 4,000 Charitable donations to registered charities 3,200 Meals and entertainment 1,900 Salary to spouse- considered reasonable 20,000 Financing fee at the bank for financing an operating line 2,500

Igor had the following UCC at the beginning of the 2016 taxation year

Asset Class UCC January 1, 2016 Video Computer 50 $10,500 Equipment 8 5,500 Vehicle 10 12,000

The video computer was originally purchased for $15,000 and was sold for proceeds of $20,000 in 2016. Also, during 2016, Igor purchased new Class 8 equipment for a cost of $3,000. He also disposed of Class 8 equipment that originally had a cost of $3,000 for proceeds of $1,000. Igor also purchased another vehicle to be used in the business. The cost of the vehicle was $45,000. (Ignore HST)

Property Income

Igor received the following property income in 2016: Dividends from Dauz Inc. (purchased through the stock option)(ineligible) $1,000 Dividends from Disney Corp- a US company- net of 20% withholding $800 Dividends from Fortis Inc., a public company (Eligible) $1,200 Interest from a Canada Savings Bond $400 Dividends from an investment in ABC mutual fund ( traded on a stock exchange)** $100 Interest income from an investment in ABC mutual fund** $200 Igor also paid interest of $450 to CIBC for a loan he had to purchase his shares in the Mutual Fund. He also paid $600 on a personal loan that he had from BMO that he obtained to go on a trip to Italy for rest and relaxation!

Igor also has two rental properties. In 2016 the gross revenue and expenses for each property was as follows: Judge Place President Avenue Total Gross revenue $12,000 $24,000 $36,000 Property taxes 2,500 3,000 5,500 Mortgage interest 9,000 12,000 21,000 Mortgage principal 15,000 20,000 35,000 Insurance 900 1,900 2,800 Repairs and maintenance 5,000 5,700 10,700 Advertising 500 500 1,000 Available CCA 2,000 8,000 10,000 Igor wants to claim CCA on President Avenue before Judge Street to the extent allowable.

Capital Gains/Losses

Igor inherited $250,000 from his late uncle back in 2010. Igor invested most of this in various investments. In 2016, he made the following dispositions: Property Adjusted cost base Proceeds of disposition Collector car $50,000 $26,000 Marble sculpture 900 12,000 Stamp Collection 4,000 950 Ski doo 1,000 2,000 Piano 5,200 2,700 Igor had incurred listed personal property losses in prior years of $2,200 (net capital losses of $1,100) which were carried forward to 2016. Igor also invested in shares of Jake Doyle Limited in 2016. He purchased the shares as follows: Date Number of shares Price per share Total cost January 15 100 $9.50 $950 March 23 300 $12.50 $3,750 April 15 400 $18.25 $7,300 May 18 200 $22.50 $4,500 B6120 Term Test 2 Winter 2017 4 | P a g e In December 2016, Igor sold the 1,000 shares for proceeds of $32.00 per share. There were no expenses on sale.

Other Income/Deductions

Igor is divorced from his first wife Patty, and pays monthly alimony in the amount of $3,000. He paid this amount under a Court order for the entire 2016 taxation year. Igor remarried and he and his wife Allie have two children- Oscar who is 4 and Jason who is 10.

Igor and Allie paid $18,000 for childcare expenses in 2016 to Memorial University of Newfoundland Day Care Centre. Allie is the daughter of a wealthy tycoon and in 2016 she was paid a salary of $850,000. Igor contributed $3,000 to his Tax Free Savings account which bought his balance to the end of 2016 to $23,000. He withdrew $5,000 in 2016 from the TFSA.