This is a taxation question

ads/Byrd SelfStudy 9 12 Question.pdf Self Study Problem Nine - 12 (Comprehensive Case Covering Chapters 1 to 9) Carolyn Hadley is 29 years old and recently divorced. The terms of the 2018 divorce settle. ment require that her former spouse pay $1,000 per month in child support, as well as $500 per month in spousal support. Because he lost his job in 2019, payments during this year have totaled only $12,500. Carolyn has two children. Her younger child, Deborah, is 4 years old. Her older child Mark is 7 years old. Neither child has any income of their own. Prior to the divorce, the family had lived in property that Carolyn owned in Lethbridge, Alberta. Prior to 2019, Carolyn had been a stay at home mom with no source of income of her own. Because she knew her support payments would not provide an adequate amount of income for her family, she accepted a job in Edmonton, Alberta. Her employment contract calls for her to begin work on March 1, 2019. During January, 2019, Carolyn made several house hunting trips to Edmonton. The cost of these trips was $785. In February, she made an offer on an Edmonton home and it was accepted. The closing date for the sale is March 10, 2019. Her Lethbridge house was sold, with a closing date of February 15, 2019. After the closing on her Lethbridge home, she and her children spent 14 days in a Lethbridge hotel. The trip to Edmonton was 506 kilometers and took 2 days as she drove very slowly because she was pulling a trailer, Carolyn stayed overnight with family in Calgary en route. On arriving in Edmonton, she spent an additional 9 days in hotels prior to her new home becoming available. Carolyn will use the simplified method of calculating meal and vehicle costs for the trip to Edmonton. Assume that the 2019 vehicle rate is $0.58 per kilometer and the 2019 rate for meals is $51 per day per person. The various other costs associated with the real estate transactions and the move to Edmonton are as follows: Selling Costs Of Lethbridge Property $12,500 Legal Fees - Sale Of Lethbridge Property 600 Legal Fees - Purchase of Edmonton Property 450 Storage Costs - February 15 Through March 10 1,400 Cost Of Moving Belongings 7,250 Lodging In Lethbridge After Closing I(14 Days $175)] 2,450 Lodging In Edmonton Prior To Closing I(9 Days)[$200) 1,800 After moving to Edmonton, Carolyn incurred child care costs of $175 per week for 38 weeks. Both children spent two weeks during the summer at a camp near Red Deer. The camp cost $500 per week for each child. The family's 2019 medical and dental expenses were as follows: Carolyn $1,200 Deborah 4,200 Mark 2,200 Total $7,600 o 9 R 2R A wae Self Study Problem Nine - 12 Carolyn's new employer is a large Canadian public company. Her basic salary is $5,000 per month and, during 2019, her employer withheld the following amount from her earnings. RPP Contributions $2,600 860 CPP 2,749 United Way Contributions 600 Her employer makes a matching contribution to her RPP of $2,600. Her employer provides her with an automobile that the company acquired on April 1, 2019 at a cost of $42,000. During 2019, she drove the car a total of 46,000 kilometers, of which 38,000 were employment related. The company paid all of the operating costs of the vehicle, a total of $7,200 during 2019. The car was used by Carolyn from April 1, 2019, through December 31, 2019. Her employer provides an allowance for food and lodging while traveling on company busi- ness. The allowance is $600 per month, a total of $5,400 for the 9 months that Carolyn was traveling for her employer during 2019. Her actual cost for employment related food and lodging in 2019 totaled $5,700. Her employer also provides a moving cost allowance of $10,000. In addition, the employer is reimbursing Carolyn for the $4,000 loss on the sale of her Lethbridge home, as well as providing a $7,500 payment to assist with the higher housing costs she has encountered in Edmonton During 2018, Carolyn is given a group of securities by her father. The adjusted cost base of these securities was $45,000 in the hands of her father. At the time of the gift, their fair market value was $62,000. During 2019, these securities pay eligible dividends of $5,800. In December, 2019, Carolyn sells these securities for $74,000. In June, 2019, Carolyn's mother dies, leaving her with a rental property that has a fair market value of $320,000, of which $50,000 represents the value of the land. At the time of her mother's death, the UCC of the building was $240,000 and it was not occupied by a tenant. Her mother had purchased the property several years ago for $400,000. At the time her mother acquired the property it was estimated that the value of the land was $100,000. Carolyn was not able to find a tenant and, in December, 2019, she sells the property for $340,000. An appraiser indicates that the value of the land at this time is unchanged at $50,000 Required: Calculate the following for Carolyn: . her minimum 2019 Net Income For Tax Purposes, her minimum 2019 Taxable income, her minimum 2019 federal Tax Payable. Ignore GST and HST considerations and any amounts of in withheld by Carolyn's employer. SOLUTION available in printed and online Study Guide. ads/Byrd SelfStudy 9 12 Question.pdf Self Study Problem Nine - 12 (Comprehensive Case Covering Chapters 1 to 9) Carolyn Hadley is 29 years old and recently divorced. The terms of the 2018 divorce settle. ment require that her former spouse pay $1,000 per month in child support, as well as $500 per month in spousal support. Because he lost his job in 2019, payments during this year have totaled only $12,500. Carolyn has two children. Her younger child, Deborah, is 4 years old. Her older child Mark is 7 years old. Neither child has any income of their own. Prior to the divorce, the family had lived in property that Carolyn owned in Lethbridge, Alberta. Prior to 2019, Carolyn had been a stay at home mom with no source of income of her own. Because she knew her support payments would not provide an adequate amount of income for her family, she accepted a job in Edmonton, Alberta. Her employment contract calls for her to begin work on March 1, 2019. During January, 2019, Carolyn made several house hunting trips to Edmonton. The cost of these trips was $785. In February, she made an offer on an Edmonton home and it was accepted. The closing date for the sale is March 10, 2019. Her Lethbridge house was sold, with a closing date of February 15, 2019. After the closing on her Lethbridge home, she and her children spent 14 days in a Lethbridge hotel. The trip to Edmonton was 506 kilometers and took 2 days as she drove very slowly because she was pulling a trailer, Carolyn stayed overnight with family in Calgary en route. On arriving in Edmonton, she spent an additional 9 days in hotels prior to her new home becoming available. Carolyn will use the simplified method of calculating meal and vehicle costs for the trip to Edmonton. Assume that the 2019 vehicle rate is $0.58 per kilometer and the 2019 rate for meals is $51 per day per person. The various other costs associated with the real estate transactions and the move to Edmonton are as follows: Selling Costs Of Lethbridge Property $12,500 Legal Fees - Sale Of Lethbridge Property 600 Legal Fees - Purchase of Edmonton Property 450 Storage Costs - February 15 Through March 10 1,400 Cost Of Moving Belongings 7,250 Lodging In Lethbridge After Closing I(14 Days $175)] 2,450 Lodging In Edmonton Prior To Closing I(9 Days)[$200) 1,800 After moving to Edmonton, Carolyn incurred child care costs of $175 per week for 38 weeks. Both children spent two weeks during the summer at a camp near Red Deer. The camp cost $500 per week for each child. The family's 2019 medical and dental expenses were as follows: Carolyn $1,200 Deborah 4,200 Mark 2,200 Total $7,600 o 9 R 2R A wae Self Study Problem Nine - 12 Carolyn's new employer is a large Canadian public company. Her basic salary is $5,000 per month and, during 2019, her employer withheld the following amount from her earnings. RPP Contributions $2,600 860 CPP 2,749 United Way Contributions 600 Her employer makes a matching contribution to her RPP of $2,600. Her employer provides her with an automobile that the company acquired on April 1, 2019 at a cost of $42,000. During 2019, she drove the car a total of 46,000 kilometers, of which 38,000 were employment related. The company paid all of the operating costs of the vehicle, a total of $7,200 during 2019. The car was used by Carolyn from April 1, 2019, through December 31, 2019. Her employer provides an allowance for food and lodging while traveling on company busi- ness. The allowance is $600 per month, a total of $5,400 for the 9 months that Carolyn was traveling for her employer during 2019. Her actual cost for employment related food and lodging in 2019 totaled $5,700. Her employer also provides a moving cost allowance of $10,000. In addition, the employer is reimbursing Carolyn for the $4,000 loss on the sale of her Lethbridge home, as well as providing a $7,500 payment to assist with the higher housing costs she has encountered in Edmonton During 2018, Carolyn is given a group of securities by her father. The adjusted cost base of these securities was $45,000 in the hands of her father. At the time of the gift, their fair market value was $62,000. During 2019, these securities pay eligible dividends of $5,800. In December, 2019, Carolyn sells these securities for $74,000. In June, 2019, Carolyn's mother dies, leaving her with a rental property that has a fair market value of $320,000, of which $50,000 represents the value of the land. At the time of her mother's death, the UCC of the building was $240,000 and it was not occupied by a tenant. Her mother had purchased the property several years ago for $400,000. At the time her mother acquired the property it was estimated that the value of the land was $100,000. Carolyn was not able to find a tenant and, in December, 2019, she sells the property for $340,000. An appraiser indicates that the value of the land at this time is unchanged at $50,000 Required: Calculate the following for Carolyn: . her minimum 2019 Net Income For Tax Purposes, her minimum 2019 Taxable income, her minimum 2019 federal Tax Payable. Ignore GST and HST considerations and any amounts of in withheld by Carolyn's employer. SOLUTION available in printed and online Study Guide