Jolene Salazar runs a flower shop in Delta, B.C. as a sole proprietorship (i.e. it is her own unincorporated business). She has provided you with the following information for the year (2021): 

1. She has been in a common-law marriage with Jonathan Dumfry for the last three years. Jonathan earned $7,000 this year. 

2. She paid spousal support to her ex-husband in the amount of $8,000. 

3. She contributed $4,000 to her RRSP, the entire amount is deductible. 

4. She has a non-capital loss of $12,000 and a net capital loss of $4,000 available from some bad investments she made in 2016. 

5. She is angry with her ex-husband and sold her old diamond wedding ring for $1,200 (original cost $700) and her old wedding dress for $800 (original cost $1,700). 

6. Jolene has a background in accounting and prepares her financial statements in accordance with GAAP. Her net income for accounting purposes was $125,000 in 2021 and included the following: $4,000 gain on the sale of equipment used in her business $8,000 in meals and entertainment expenses $7,500 amortization $3,000 in penalties from the CRA Her UCC balances at the beginning of 2021 were as follows: Class 8: $18,000 Class 12: $20,000 During 2021 her business had the following capital transactions: She purchased a canoe for $3,000 so she could sell her flowers at the outdoor river. market. She sold all of the class 12 items during the year for $14,000 (this was less than their original cost). 

Please calculate Jolene's net tax payable for 2021. Make sure to clearly show your work (use 53 formats) and explain/support the relevant amounts (including items you have excluded from the calculation). 

Answer rating: 100% (QA)

Compute Jolenes tax payable 1275650 StepbyStep explanation 1 Compute Jolenes taxable in... View the full answer