I am having problems with the below practice problem. Please help soon

Linda James (40 years old) is an employee of a Canadian controlled private corporation (CCPC). She is married to Steven (45 years old), who is a stay-at-home Dad.They have a 5 year old daughter who is severely disabled, and has been certified by her Doctor for the disability tax credit.Linda's mother also lives with them.She is 75, healthy, and has net income of $16,000.

Required:

For the 2019 taxation year, calculate the following for Linda:

(a)Net income for tax purposes and taxable income (22 marks)

(b)Use the taxable income from part (a) above to calculate the federal income tax payable (refund). (14 marks)

Notes:

1.Linda received gross salary of $85,000. From this amount, CCPC deducted income taxes of $17,000, CPP contributions of $2,749, EI premiums of $860, registered pension plan contributions of $6,000, and union dues of $550.

2.In addition to her salary, CCPC paid the following on Linda's behalf:

Registered pension plan

$6,500

Group private medical and dental insurance

625

Group disability insurance premium

300

3.Linda had the use of a car which CCPC purchased for $35,000 and a net book value of $21,000 for the entire year. She drove a total of 25,000 km, of which 19,000 were for employment purposes. The company paid all of the operating expenses of $4,500.

4.Linda participates in CCPC's stock option plan.In May of 2001, she received options to purchase up to 2,500 shares at $10 per share. CCPC's shares were valued at $9 at this date. She exercised the options on June 17, 2014. At this time, the shares were valued at $15 per share. On September 27, 2019 she sold 1,000 of these shares for $20 per share and paid brokers fees of $500.

5.Linda recently received a small inheritance from her great Aunt.She has decided to catch up on her retirement savings and on December 1, 2019, purchased $13,000 in RRSPs for herself and $4,000 in RRSPs for her husband.Her prior year Notice of Assessment indicates that her earned income was $75,000, her pension adjustment is 8,000 and that she has $15,000 in unused contribution room.

Question 3 - continued...

6.Other receipts and (disbursements) during the year:

Prescription medicine for mother

(2,500)

Sale of ring [cost $800]

1,300

Donation to registered charity

(4,000)

7.A review of Linda's 2018 T1 revealed the following information:

Net-capital losses carryforward from 2011 of $27,000.