Martin and Zuli have not filed their income tax returns for 2020. They have asked you to prepare both of their 2020 income tax returns and provide you with the following information. Martin is 50 years old and has been married to Zuli for 20 years. Zuli is 48 years old. They have two healthy children, 11-year-old Ryan, and 9-year-old Zoe. During 2020 Ryan earned $800 in part-time jobs and Martin volunteered 300 hours in search and rescue and was not paid for this volunteer work. Martin is the sole proprietor of a financial consulting business with a December 31 year end. In 2010, when he opened his business, he purchased a new Class 1 office building for $750,000, that included $180,000 worth of land value. Martin uses all of the building for his business. On January 1, 2020, the building had a UCC of $431,676. In March 2020 Martin purchased $204,000 of office furniture. He sells the old furniture for $31,000. The old furniture had an ACB of $93,000 and a UCC of $34,284. Martin also purchased a computer for $1,200, applications software for $2,044, and a client list from another consulting firm for $41,000. Martin uses a car for business. On January 1, 2020, he purchased a new car for $65,000. During 2020 he drove it a total of 32,000 kilometers, with 29,000 kilometers of those kilometers related to business. The car’s operating costs for the year were $4,800. Other costs Martin incurred in 2020 were building operating costs $24,300, staff wages $42,000, miscellaneous office costs $17,500, and meals with clients $15,300. During 2020 Martin provided and billed his clients for services worth $354,800. Zuli works for a large Canadian public company. Her 2020 salary was $62,000. Zuli’s employer matches her Registered Pension Plan (RPP) Contribution. Her employer withheld the following amounts from her pay: Registered Pension Plan Contributions$2,500 EI Premiums856 CPP Contributions2,732 Zuli is required to travel for employment. She uses her own car for employment. She purchased a car on January 1, 2020, for $42,000. During 2020, she drove a total of 36,000 kilometers of those 31,500 kilometers were for employment. The car’s total operating costs were $3,465. In addition, Zuli’s out of town travel costs were $3,200 for hotels and $1,300 for food. Zuli’s employer paid her a $4,400 allowance for hotels and food, and $5,200 allowance to compensate her for having to use her own car for employment. Martin’s Mutual Fund investments in 2020 distributed: Capital Gains$22,960 Eligible Dividends8,500 Interest Income5,500 Total$36,960 Both Martin and Zuli have Registered Retirement Savings Plans (RRSP). At the beginning of 2020, Martin’s RRSP had $11,000 in unused deduction room and $13,000 in undeducted contributions. During 2020, he contributed $22,000 to his RRSP. Martin’s earned income for 2019 was $123,000. He plans to take the maximum deduction available. However, in December 2017, Martin withdrew $25,000 from his RRSP under the Home Buyers’ Plan. In January 2018, he used this $25,000 to purchase a new home. Also, in 2018 he repaid $10,000 of the Home Buyers’ Plan balance. He has not made any repayment to the Home Buyers’ Plan during either 2019 or 2020. At the beginning of 2020, Zuli had $7,000 of unused deduction room in her RRSP. She has been able to deduct all the contributions she had made in previous years. In February 2017, Martin contributed $5,000 into Zuli’s RRSP and deducted it on his 2017 return. He has not made any additional contributions to Zuli’s plan. In December 2020, Zuli withdrew $7,000 from her RRSP to loan to her brother. In February 2021, her brother pays her back the $7,000, along with a gift of $15,000 for being such a great sister. Zuli immediately puts the $7,000 back into her RRSP. Zuli’s earned income for 2019 was $51,000. Her employer reported a pension adjustment for that year of $4,800. She plans to take the maximum deduction available. At the beginning of 2020, Zuli’s employer increased the defined benefit formula of the company’s RPP in accordance with a new collective agreement. Previously, the benefit was based on 1.5% of pensionable earnings for each year of service. The new agreement calls for a benefit based on 1.75% of pensionable earnings for each year of service. This change is applied retroactively. Zuli has been a member of the plan since 2017. Her pensionable earnings during those years are as follows: YearPensionable Earnings 2016$40,000 201745,000 201848,000 Martin paid the following medical bills for 2020: Martin’s Hair Replacement$7,500 Zuli’s Prescription Glasses850 Zuli’s Teeth Whitening1,025 Ryan’s Prescription Glasses350 Ryan’s Psychologist1,500 Zoe’s Physiotherapy725 Total$11,950 Martin and Zuli will allocate tax credits between them to minimize the family’s income tax bill. Where either spouse can claim the credit and it makes no difference in the combined tax payable, Martin will claim the credit. Required: A.Determine Zuli’s Net Income, Taxable Income, and Taxes Payable/Refund for 2020. B.Determine Martin’s Net Income, Taxable Income, and Taxes Payable/Refund for 2020.