Accouting 3470 income tax 2

Assignment Problem Eleven - 7 (Death Of A Taxpayer) Family Information On July 7, 2019, Mrs. Rachelle Flax was killed in an automobile accident. At the time of her death, Rachelle was 47 years old. She is survived by her 44 year old husband, Martin Flax and her 24 year old daughter, Roxanne Flax. Martin has spent most of his adult life volunteering for worthy causes. During 2019, he has employment income of $2,100 that was paid to him for services performed for Rachelle's unincorporated business prior to her death, as well as $1,700 in interest income. This interest was earned on a guaranteed investment certificate that had been given to him by Rachelle several years ago. Roxanne is a very successful home decorator and is not a dependant of Rachelle. Business Income For several years, Rachelle has been the proprietor of a dog boutique and restaurant. The business had a December 31 fiscal year end. Until the date of her death, the proprietorship had net business income for tax purposes of $69,400. At the time of her death, the fair market value of the business assets was $5,900 greater than their UCC. None of the individual assets had fair market values that exceeded their capital cost.Assignment Problems As noted, prior to her death, the business had paid her husband, Martin trail of $2.100. Thy was for serving as bartender in the restaurant for discerning dogs, Martin did month Capable of carrying on the business on his own, he immediately sold the asacts for their pal market value to a regular customer. to harm! Rental Property Rachelle had owned a residential rental property for 5 years prior to her death, In 2019. to her death, the property ha Yhad rents of $46,300 and expenses other than CCAof $31,400. Th property had been purchased for $312,000, of which $210,000 was allocated to the bright and $102,000 to the land. An appraisal indicated that, at the time of her death, the total vais of the property was $355,000, which was allocated $243,000 to the buildingand $112.gog the land. At January 1, 2019, the building had a UCC of $174,795. Rachelle's will leaves this property to her daughter, Roxanne. enisd ludge Investments And Other Assets follows: Information related to the other assets that Rachelle owned at the time of her death iz ofArt Collection Rachelle had collected Inuit art for a number of years. Her collections me had an adjusted cost base of $23,400. At the time of her death, the fair market valueof collection was $57,000. The collection was left to her daughter who immediately sold the collection for its fair market value of $57,000. bri fot badtow Jewelry Over the years, Rachelle had spent $32,000 on various pieces of jewelry. Att time of her death, their fair market value was only $8,300. The collection was left to her daughter who immediately sold them for their fair market value of $8,300. Shares In RAF Lid. RAF Led, is a Canadian public company. The common shares were purchased for $12,400 and, prior to her death, paid Rachelle eligible dividends of $Beg, At the time of her death, their fair market value was $28,600. Her will leaves these shares to the Humane Society. The Humane Society issues a charitable donation receipt for $26,600 on receiving the shares. Shares In Flax Fittings Inc. This is a company that was started by Rachelle's father with an investment of $20,000. He left all of the shares to Rachelle in his will. At that time, their fair market value was $72,000. Prior to her death, the shares paid Rachelle non-eligible dividends of $6,200. At the time of her death, their fair market value was $104,000. The shares are not eligible for the lifetime capital gains deduction. Her will leaves these shares to Martin. bn RRSP At the time of her death, Rachelle had an RRSP with a total fair market value of $1,123,000. Martin is named as beneficiary of the RRSP. of jellgush bio Family Residence The family home is in Rachelle's name only. It had been purchased at a cost of $382,600. At the time of her death, the appraised value of the property was $507,000. This property is left to Martin. Other Information At the time of her death, Rachelle had a net capital loss carry forward of $89,400 and a listed personal property loss carry forward (100 percent) of $5,400. Rachelle has never claimed the lifetime capital gains deduction. Due to her business income, Rachelle will pay the maximum CPP contributions for a self employed proprietor. The terms of Rachelle's will requires the executor of her estate to elect out of the ITA 70(6) spousal rollover in the case of all properties bequeathed to Martin. Required: Calculate Rachelle's minimum Net Income For Tax Purposes for the 2019 taxa- tion year, her minimum Taxable income for that year, and her 2019 federal Tax Payable