Hugh Mann is a 42 year old entrepreneur. He runs his own business and has correctly calculated
Question:
Hugh Mann is a 42 year old entrepreneur. He runs his own business and has correctly calculated his net business income for tax purposes to be $100,000 in 2021. He has made all required income tax instalment payments and Canada Pension Plan payments for the year. He has opted out of Employment Insurance.
Hugh owns a stock that paid a non-eligible dividend in the amount of $20,000 during 2021. He also sold 1,000 shares in ABC Inc., a publicly traded company, during 2021. These shares had an adjusted cost base of $15/share and he was able to sell them for $30/share during the year.
Hugh is a divorced father of two. His divorce agreement requires that he pay his ex-wife $1,000 per month in child support and $200 per month in spousal support. He made all of the payments during 2021 as required.
Hugh has a $8,000 allowable capital loss carryover from a number of years ago that he has not been able to use in a prior taxation year.
Required:
A. Calculate the amount to report on each line in the table below, including Hugh's 2021 Net Income for Tax Purposes and Taxable Income.
| Description | Amount |
| Line 3a | |
| Line 3b | |
| Line 3c | |
| Line 3d | |
| Net Income for Tax Purposes | |
| Division C Deductions | |
| Taxable Income |
B. Calculate the following Federal Tax Credits for Slava:
| Description: | Amount |
| Federal Dividend Tax Credit | |
| CPP Tax Credit |
