Andrew has $10,000 to invest. He wants to put his money in a one-year investment earning an

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Question:

Andrew has $10,000 to invest. He wants to put his money in a one-year investment earning an annual interest rate of 12%. Andrew is in a 42% tax bracket. Required: a) Calculate the total value of Andrew's investment, after-tax, at the end of the year. b) Calculate the amount of taxes Andrew will have to pay on his investment.

Sally earned $210,000 during 20x8. CPP and EI were deducted from her pay, totaling $3,452, and total income tax (federal and provincial) deducted was $70,000. She also received eligible dividends in the amount of $10,000. She sold shares in a public corporation during the year and recognized a capital gain of $500,000. Sally is married. Her husband earned $100,000 during the year.

Required:

A) Calculate Sally's taxable income and her federal tax liability before the deduction of any allowable non-refundable tax credits using

1) the normal method, and

2) the alternative minimum tax method.