Chris Nowicki was employed by Real Co. in 2021. Chris earned $35,000 from January 1 to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Chris Nowicki was employed by Real Co. in 2021. Chris earned $35,000 from January 1 to October 10 before transferring with the company to a town 1312 kilometres away. The new position began on November 1, 2021, and paid Chris a gross salary of $4000 per month. Chris's moving expenses included: 1. $7,000 for a moving van 2. $300 for meals for Chris and Chris's 4-year-old child on the four-day drive 3. $700 for accommodations on the four-day trip 4. $3000 ($150 per day) for 20 nights of temporary lodging in the new location until an apartment was available 5. $550 in gas receipts Chris was not reimbursed for the move. Chris also received the following in 2021: Support payments from a former spouse ($3,000 x 12)* $36,000 Life insurance proceeds from a deceased relative $20,000 Prize for achievement in Chris' field of endeavour $300 RRSP withdrawal to use for other than education or first home $15,000 purchase Lottery winnings $2,000 *The support payments are in accordance with Chris's divorce agreement, which calls for monthly support payments of $1,500 for Chris and $1,500 for Chris's child. Assumed mileage rates: New location = 50 cents/km Previous location = 47 cents/km Required: Determine Chris's minimum net income for tax purposes for 2021 in accordance with Section 3 of the Income Tax Act. Show all calculations for the moving expenses and identify any amounts to be carried-forward. Explain why any amounts have not been included. (Round your intermediate calculations to the nearest whole dollar.) Chris Nowicki was employed by Real Co. in 2021. Chris earned $35,000 from January 1 to October 10 before transferring with the company to a town 1312 kilometres away. The new position began on November 1, 2021, and paid Chris a gross salary of $4000 per month. Chris's moving expenses included: 1. $7,000 for a moving van 2. $300 for meals for Chris and Chris's 4-year-old child on the four-day drive 3. $700 for accommodations on the four-day trip 4. $3000 ($150 per day) for 20 nights of temporary lodging in the new location until an apartment was available 5. $550 in gas receipts Chris was not reimbursed for the move. Chris also received the following in 2021: Support payments from a former spouse ($3,000 x 12)* $36,000 Life insurance proceeds from a deceased relative $20,000 Prize for achievement in Chris' field of endeavour $300 RRSP withdrawal to use for other than education or first home $15,000 purchase Lottery winnings $2,000 *The support payments are in accordance with Chris's divorce agreement, which calls for monthly support payments of $1,500 for Chris and $1,500 for Chris's child. Assumed mileage rates: New location = 50 cents/km Previous location = 47 cents/km Required: Determine Chris's minimum net income for tax purposes for 2021 in accordance with Section 3 of the Income Tax Act. Show all calculations for the moving expenses and identify any amounts to be carried-forward. Explain why any amounts have not been included. (Round your intermediate calculations to the nearest whole dollar.)
Expert Answer:
Answer rating: 100% (QA)
ITA 30 Employment income 35000 8000 43000 Other income 18000 support payments f... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
From January 1 to December 31, 2011, there were 5,086 bank robberies in the United States. The percentage of that total for each day of the week is listed next. The number of robberies per day for...
-
Question 1. This question is based on a journal article that appeared in the New England Journal of Medicine: Gawande AA et al., "Risk factors for retained instruments and sponges after surgery."...
-
Chris Gayle, a lawyer, received $72,000 on October 1 to represent a client in real estate negotiations over the next 12 months. 1. Prepare the journal entries required in Gayles records on October 1...
-
The Litzenberger Company has projected the following quarterly sales amounts for the coming year: a. Accounts receivable at the beginning of the year are $310. Litzenberger has a 45-day collection...
-
Use the data from Exercise 8-1, but assume use of either the complete or the partial equity method rather than the cost method. Required: A. Prepare the journal entries Peck Company will make on its...
-
Solve the given problems by use of an appropriate sequence or series. All numbers are accurate to at least two significant digits. Approximate the value of 30 by noting that and using three terms of...
-
Using \(q_{0.05}=4.339\) for the Tukey HSD method, compare the treatments in Exercise 12.45. Data From Exercise 12.45 12.45 Given the following data from a randomized block design, Blocks 1 234...
-
Smith Company is preparing its multiple-step income statement, statement of owners equity, and classified balance sheet. Using the column heads Account, Financial Statement, and Classification,...
-
Company had $ 8 5 , 3 8 0 of accounts payable on september 1 and $ 7 6 , 5 6 0 on september 3 0 . During September , the company paid total cash of $ 7 9 , 6 5 0 on accounts payable. Determine the...
-
Jamie Lee Jackson, age 26, is in her last semester of college and is anxiously waiting for graduation day that is just around the corner! She still works part-time as a bakery clerk, has been...
-
Malaika plc, a British company, is planning to make a payment in euros of 150 million at the end of September. However, the nearest maturity date for a euro futures contract is at 13 December and it...
-
Comprehensive Problem (Tax Return} Problem). Mr. and Mrs. Sam Morris retired on February 10,2018, and call you in for tax advice. Both Sam and his wife Sarah have worked for many years. Sam is 65...
-
Describe the nature of survivors reactions to downsizing and the existence of moderating variables affecting these, and evaluate their significance for organisations using this type of change...
-
Outline a range of strategies and data collection techniques involving both primary and secondary data, which may be used to evaluate strategic human resource management;
-
Charles Adams, who is single, retired on March 3, 2018, at the age of 65. For the year 2018, he receives the following income: What is Charles' modified AGI? What amount, if any, of his Social...
-
Identify the major principles which underpin the concept of strategic human resource management (SHRM);
-
What information about potential international destinations (features) could be provided to customers in order for them to make an informed choice about their international holiday destination?...
-
5. How much would you need to deposit in an account now in order to have $5,000 in the account in 5 years? Assume the account earns 2% interest compounded monthly. 10. You deposit $300 each month...
-
Conduct a regression analysis with position on the question, should the government help poor people (HELPPOOR: 1 = Government action; 2, 3, 4, 5 = eople should help themselves) as the dependent...
-
Burger King Restaurants regularly survey customers to determine how well they are doing. Suppose that a survey asked customers to rate (among other things) the speed of service. The responses are 1 =...
-
Can we infer from the data that liberals, moderates, and conservatives (POLVIEWS3: 1 = Liberal, 2 = Moderate, 3 = Conservative) differ in their views about the federal income tax that they have to...
-
The U-tube in Fig. P2.160 rotates at \(2.0 \mathrm{rev} / \mathrm{sec}\). Find the absolute pressures at points \(C\) and \(B\) if the atmospheric pressure is 14.696 psia. Recall that \(70{ }^{\circ}...
-
A valve has a failure rate of 0.06 failures per year. A periodic inspection performed once a year can detect 60% of the failures. The valve is operated for 10 years before it is removed from service...
-
An instrument has a failure rate of 0.015 failures per year. All failures are immediately detectable. The MTTR is 24 hours. What is steady state unavailability?
Study smarter with the SolutionInn App