The following 2016 correct computation of taxable income for John Q. Citizen has been prepared for your analysis:

Additional Information

(1) John, age 67, and his wife Jill, age 64, are both resident in your province. Jill has no income and is blind.

(2) John has made the following selected payments in 2016:

Donations:

(3) John’s employer correctly withheld the following amounts:

(4) John filed his return on April 30, 2017.

REQUIRED

Compute the total amount of federal taxes payable for the year.

Transcribed Image Text:

Employment income for tax purposes Business and property income, composed of: Dividends from Canadian-resident public corporations Gross-up 38% Dividends Foreign ($150 of tax withheld) Pension income (including OAS benefit of $6,850) Taxable capital gain Division B income Less: net capital losses Taxable income Less: Subdivision e deductions: RRSP contributions Old Age Security benefit clawback Moving expenses $ 3,000 1,140 1,000 $ 1,000 8 1,050 $52,000 5,140 16,219 2,500 $75,859 (2,058) $73,801 (1,000) $72,801