Mr. Allen Arnold lives in Burlington, Ontario. He is 38 years old. His wife Brenda is...

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Mr. Allen Arnold lives in Burlington, Ontario. He is 38 years old. His wife Brenda is 32 years old and for 2019, she has Net Income For Tax Purposes of $8,500. They have two children. Their daughter Sarah is 12 and has income from part time jobs of $300. Their son Derek is 10 and has no income of his own. Mr. Arnold works for a large public company and, during 2019, his basic salary is $103,000. In addition, he has commission income of $26,140. During 2019, his employer withholds the following amounts from his earnings: Registered Pension Plan Contributions Canada Pension Plan Contributions Employment Insurance Premiums Donations To United Way Union Dues Payments For Personal Use Of Company Car Contributions To Company's Disability Plan $4,200 2,749 860 1,200 260 600 1,200 Other Information: 1. Mr. Arnold's employer makes a matching $4,200 contribution to the company's RPP on behalf of Mr. Arnold. 2. Mr. Arnold's employer makes a matching $1,200 contribution to the company's disability plan on behalf of Mr. Arnold. The comprehensive disability plan provides periodic benefits during any period of disability to compensate for lost employment income. Due to a two month sick leave, Mr. Arnold receives disability benefits of $10,950. Mr. Arnold has been making a $1,200 contribution each year since 2016. He has had no benefit claims in the years 2016 through 2018. 3. Mr. Arnold's employer provides him with a car that was purchased in 2016 for $38,000. His employer pays all of the operating costs which, during 2019 totalled $9,800. During the year, Mr. Arnold drove the car a total of 48,000 kilometers, 42,000 of which were for employment related travel. During Mr. Arnold's two month sick leave, he was required to return the car to the company garage. 4. Medical expenses for Mr. Arnold's family are as follows: Allen Brenda Sarah Derek $3,650 2,600 1,300 6,200 5. Mr. Arnold is required to maintain an office in his home without reimbursement from his employer. His employer provides the required T2200 form. He uses 20 percent of the home's floor space for his office. The costs for his home are as follows: Utilities And Maintenance Insurance Property Taxes Mortgage Interest 9,600 6. Mr. Arnold receives a travel allowance of $4,800 per year to cover his hotel costs. His actual hotel costs for 2019 were $5,100. In addition, he spent $6,300 on client meals and entertainment. His employer does not reimburse any of these costs. $ 5,000 7. As with all of the other employees, Mr. Arnold received a $750 gift certificate for use at a local department store. He also received a $300 cash reward for his sales performance. 4,500 7,600 8. In addition to his employment income, Mr. Arnold has taxable capital gains from stock market trading of $4,500, a net rental loss of $6,000 from a residential rental property, and $8,600 in net business income from selling used items on his website. 9. Mr. Arnold supports the church that he attends with donations of $200 per month throughout 2019. 10. In 2018, Mr. Arnold's Net Income For Tax Purposes was $98,000. This was made up of net employment income of $93,000 (after the deduction of $4,000 in RPP contributions), interest income of $3,000, a net rental loss of $7,000, and net business income of $9,000. A. Calculate Mr. Arnold's maximum deductible RRSP contribution for 2019. 11. At the end of 2018, Mr. Arnold's Unused RRSP Deduction Room was $6,200 and he had no undeducted contributions. His employer reported that he had a 2018 Pension Adjustment of $8,000. Required: Ignore GST/HST considerations. . • B. Assume that Mr. Arnold contributes the amount calculated in Part A to his RRSP. Calculate Mr. Arnold's 2019 minimum: Net Income For Tax Purposes, Taxable Income, and Federal Tax Payable before consideration any income tax that would have been withheld or paid in instalments. Mr. Allen Arnold lives in Burlington, Ontario. He is 38 years old. His wife Brenda is 32 years old and for 2019, she has Net Income For Tax Purposes of $8,500. They have two children. Their daughter Sarah is 12 and has income from part time jobs of $300. Their son Derek is 10 and has no income of his own. Mr. Arnold works for a large public company and, during 2019, his basic salary is $103,000. In addition, he has commission income of $26,140. During 2019, his employer withholds the following amounts from his earnings: Registered Pension Plan Contributions Canada Pension Plan Contributions Employment Insurance Premiums Donations To United Way Union Dues Payments For Personal Use Of Company Car Contributions To Company's Disability Plan $4,200 2,749 860 1,200 260 600 1,200 Other Information: 1. Mr. Arnold's employer makes a matching $4,200 contribution to the company's RPP on behalf of Mr. Arnold. 2. Mr. Arnold's employer makes a matching $1,200 contribution to the company's disability plan on behalf of Mr. Arnold. The comprehensive disability plan provides periodic benefits during any period of disability to compensate for lost employment income. Due to a two month sick leave, Mr. Arnold receives disability benefits of $10,950. Mr. Arnold has been making a $1,200 contribution each year since 2016. He has had no benefit claims in the years 2016 through 2018. 3. Mr. Arnold's employer provides him with a car that was purchased in 2016 for $38,000. His employer pays all of the operating costs which, during 2019 totalled $9,800. During the year, Mr. Arnold drove the car a total of 48,000 kilometers, 42,000 of which were for employment related travel. During Mr. Arnold's two month sick leave, he was required to return the car to the company garage. 4. Medical expenses for Mr. Arnold's family are as follows: Allen Brenda Sarah Derek $3,650 2,600 1,300 6,200 5. Mr. Arnold is required to maintain an office in his home without reimbursement from his employer. His employer provides the required T2200 form. He uses 20 percent of the home's floor space for his office. The costs for his home are as follows: Utilities And Maintenance Insurance Property Taxes Mortgage Interest 9,600 6. Mr. Arnold receives a travel allowance of $4,800 per year to cover his hotel costs. His actual hotel costs for 2019 were $5,100. In addition, he spent $6,300 on client meals and entertainment. His employer does not reimburse any of these costs. $ 5,000 7. As with all of the other employees, Mr. Arnold received a $750 gift certificate for use at a local department store. He also received a $300 cash reward for his sales performance. 4,500 7,600 8. In addition to his employment income, Mr. Arnold has taxable capital gains from stock market trading of $4,500, a net rental loss of $6,000 from a residential rental property, and $8,600 in net business income from selling used items on his website. 9. Mr. Arnold supports the church that he attends with donations of $200 per month throughout 2019. 10. In 2018, Mr. Arnold's Net Income For Tax Purposes was $98,000. This was made up of net employment income of $93,000 (after the deduction of $4,000 in RPP contributions), interest income of $3,000, a net rental loss of $7,000, and net business income of $9,000. A. Calculate Mr. Arnold's maximum deductible RRSP contribution for 2019. 11. At the end of 2018, Mr. Arnold's Unused RRSP Deduction Room was $6,200 and he had no undeducted contributions. His employer reported that he had a 2018 Pension Adjustment of $8,000. Required: Ignore GST/HST considerations. . • B. Assume that Mr. Arnold contributes the amount calculated in Part A to his RRSP. Calculate Mr. Arnold's 2019 minimum: Net Income For Tax Purposes, Taxable Income, and Federal Tax Payable before consideration any income tax that would have been withheld or paid in instalments.

Answer rating: 100% (QA)

A ANS WER The maximum deductible RR SP contribution for 2019 is 13 500 C AL C UL ATION 103 000 26 140 4 200 2 7 49 860 1 200 260 600 1 200 4 200 1 200 ... View the full answer