Bobs company ran into financial difficulty this year and he was laid off as a result of
Question:
Bobs company ran into financial difficulty this year and he was laid off as a result of it . Bob collected employment insurance for several weeks but then decided that now was the perfect time to return to school. Bob enrolled in a doctoral program at a nearby university and immediately qualify for a $5,000 research grant. During the year he spent $3,000 on his research project.
When Bob decided to return to school, he and his common-law partner separated. Bob obtained custody of their 3-year-old son. Bobs common-law partner has paid him a lump sum of child support of $10,000 and then paid $2,000 per month pursuant to the couple’s separation agreement. A summary of Bob’s income follows: Employment income $65,000
Employment insurance 6,000
Research grant 5,000
Child support total 22,000
Required:
Calculate Bob's net income for tax purposes for 2020, including any EI clawback and provide explanations for omitted items.
Auditing Cases An Interactive Learning Approach
ISBN: 978-0133852103
6th edition
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt