Eric Thompson is a CPA, working as the Vice President of Finance of Boyd Enterprises Inc., a
Question:
Eric Thompson is a CPA, working as the Vice President of Finance of Boyd Enterprises Inc., a public company headquartered in Vancouver, B.C. In 2020, Eric received a net cash salary of $77,839 from Boyd, after the following payroll deductions:
Income Taxes Withheld $38,000
Canada Pension Plan Contributions $2,964
Employment Insurance Deductions $1,772
Registered Pension Plan Contributions $6,000
Group Disability Plan Contributions $175
Charitable Donations $2,250
Eric’s wife started her MBA during the year and went to school on a part-time basis for 8-months, paying tuition of $14,750. As such, for 2020, she only earned $498 of interest income on her savings.
Required: Based on above, calculate Eric’s net federal taxes payable or refundable for 2020, commenting on his average and marginal tax rates. Be sure to explain why any amounts might be irrelevant.
Expert Answer:
Erics net federal taxes payable for 2020 would be 22651 His average tax rate would be 2901 and his m... View the full answer
