You, CPA, work for Artful Accounting Inc. (AAI), a CPA professional corporation. It is February 29, 2024 and you have just finished meeting with Maxine Maximus a senior manager at your company. Ms. Maximus needs you to assist her with Mr. Oldson.A separate and unrelated client, Mr. Oldson sadly passed away on December 1, 2023. He was 88-years-old. Ms. Maximus wants you to compute his 2023 taxable income and federal income tax owing and remind her of the due date for his 2022, and 2023, income tax returns and the due date for paying any income tax owing. Ms. Maximus does not need any advice on trusts, graduated rate estates, or the rights and things tax return at this time. Note: you will lose 1 mark for each incorrect addition/subtraction when computing Mr. Oldson's 2023 taxable income and income tax owing. Additional information about Mr. Oldson is provided in Exhibit II.

Exhibit II

Mr. Oldson

• Mr. Oldson was very ill in 2023 leading up to his death. He was in and out of hospital and unfortunately never got around to filing his 2022 income tax return. In 2023, he incurred medical expense of $75,000 and in early 2023 his doctor signed form T2201 certifying Mr. Oldson as disabled
• Mr. Oldson was a widower, who owned the following assets on December 1, 2023:

FMV Tax Cost

Tax Free Savings Account (TFSA) $320,800 $195,300

Registered Retirement Income Fund (RRIF) $575,000 $247,500

Home (he lived here all his adult life) $975,000 $140,000

Mutual funds (held in a non-registered account) $151,000 $250,000

• In 2023, prior to his death Mr. Oldson earned the following net income:

Pension income $60,000 (net of $10,000 in income tax withheld)

Eligible dividends $8,000 (cash dividends received, no income tax was withheld)

• Mr. Oldson had net-capital losses carried forward from a prior year of $40,000
• In 2023 Mr. Oldson made instalment payments of $17,000

Answer rating: 100% (QA)

To compute Mr Oldsons 2023 taxable income and federal income tax owing we need to consider the following information provided in Exhibit II 1 Medical ... View the full answer