Ben Griffey is a statistician with a Phd in mathematics. He was employed with the local professional
Question:
Ben Griffey is a statistician with a Phd in mathematics. He was employed with the local professional hockey team
(Sharks Ltd) as their statistician until August 1, 2018. On August 1st, he retired after working for the team for 20 years.
Ben was bored with retirement and accepted an offer to work on a contract basis for the local professional roller hockey
team. Ben has provided you with the following information for the year:
i)
Net income from business - (September 15 to December 31st)
$15,000
ii)
Net employment income - Sharks Ltd (gross employment)
$31,000
Employee contribution to company Registered Pension Plan (RPP)
$1,000
iii)
Gross rents received on a rental property
55,000
iv)
Operating expenses on rental property
30,000
v)
Taxable capital gain on sale of shares
10,000
vi)
Taxable capital gain on listed personal property
9,000
vii)
Business investment loss
22,000
viii)
Retiring allowance (paragraph 56(1)(a))
35,000
ix)
Purchase of RRSP (paragraph 60(i))
12,000
x)
Allowable capital loss on sale of jewellery (listed personal property)
3,000
xi)
Allowable capital loss on sale of shares
1,000
xii)
Interest income from term deposits
5,000
xiii)
Interest expense paid on loan to purchase the term deposits
(5,500)
xiv)
Gross amount of cash dividend received from a U.S. corporation
in Canadian dollars
8,000
xv)
Income from employment - part-time job (A. Ltd)
2,000
REQUIRED:
Calculate Ben's net income for tax purposes in accordance with the format of section 3 of the Income Tax Act.
Expert Answer:
Net income from business September 15 to December 31st 15000 Net employment income Shark... View the full answer
