Sammy Silver has the following income for the 2021 taxation year. Salary $115,000 Bonus 10,000 Rental income
Question:
Sammy Silver has the following income for the 2021 taxation year.
Salary…………………………………………… $115,000
Bonus…………………………………………… 10,000
Rental income…………………………………… 70,000
Interest………………………………………...... 65,000
Dividend from Canadian public corporation…... 4,000
264,000
Sammy is married and has one child. His wife does not work, and has only $1,000 interest income for 2021. His daughter of 20 is severely disabled (as certified by a medical doctor) and is supported by Sammy. She has no income for 2021. Sammy has been advised by his accountant that his 2021 maximum RRSP contribution is $31,520.
REQUIRED:
Calculate Sammy’s federal income tax payable for 2021, assuming that he makes the maximum contribution to his RRSP. Ignore C.P.P. and E.I.
