Calculate Comprehensive Tax Payable (all information is in pictures) (Comprehens

Question

Calculate Comprehensive Tax Payable (all information is in pictures)

(Comprehensive Tax Payable) Ezra Pinnock is 73 years old and is an engineering professor at a major Canadian University He is in good health and lives in Toronto in a large house he inherited from his mother. Employment Information 1. Ezra's salary received for 2017 is $163,000. As the result of a negotiations by his union, he is entitled to receive an additional $8,000 in salary related to his work during 2017. However, this adjustment will not be received until January, 2018. During 2017, Ezra's employer deducts El contributions of $836. Because of his age and the fact that he is collecting CPP benefits, Ezra no longer has to make CPP contributions. 2. 3. Ezra's employer sponsors a defined benefit pension plan. Because of his age, Ezra no longer contributes to this plan. However, when he reached age 69, he was required to start receiving a pension. During 2017, he received benefits from this plan of $26,000. 4. As much of Ezra's work involves distance education, he is required by his employer to maintain an office in his home. This home office occupies 18 percent of the space in his residence and is viewed as his principal place of business. The 2017 costs associated with this residence are as follows: cy 1 Permissions I Support I Feedback

Explanation / Answer

we make a table for above data .

we make 3 column , one for the earning and one for the expense .

So as per above table we put all the expense and income .

also in the end we calculate total .

in above table we dont put value of blaze .because he recieve that amount from the trust . so no use of that value .

A)Net income is : $484540

B) Taxable income : income - expense   = $484540-$131018 =$353522

C)Fedral tax owing is depend upon the interest rate . that is not showing in ques .

thanks ..

IF any issue then comment . please mark positive respose .

Detail of the cost Earning Expense salary recieve $163000 EI contribution $836 Pension benefit $26000 office at home cost $45810 Travel expense recieve $12000 Travel expense used $8000 fuel expense recieved $4500 Fuel expense used $3200 Award at 10 year completing $675 illness and sickness cost $1147 benefit form acciendent $1245 pension $35000 canada pension $13000 net income of wife $8420 son income $3400 father income $17300 home modification $12600 medical expense of family (expect blaze) $9425 lottary $200000 lottary donate $50000 Total $484540 $131018

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