FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Rebecca Smith has employment income of $100,290.
Her employer deducted the following amounts from her paycheque:
CPP Contributions
El Premiums
Income Tax Withholdings
at maximum
at maximum
$29,000
Rebecca is divorced and has custody of her 17 year old daughter, Susan.
Susan has income of $2,500 and attended university for one semester. Rebecca paid
Susan's tuition of $5,500 and Susan wants to transfer her tuition credits to Rebecca.
Rebecca donated $1,800 to registered charities.
She also donated $300 to each of the three major federal political parties.
Eligible medical expenses after reimbursements were $850 for herself and $1,500 for
Susan.
Required:
a) calculate Rebecca's tax liability before tax credits.
b) Calculate Rebecca's maximum federal tax credits.
c) Calculate Rebecca's Balance Owing or Refund Due.
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Transcribed Image Text:Rebecca Smith has employment income of $100,290. Her employer deducted the following amounts from her paycheque: CPP Contributions El Premiums Income Tax Withholdings at maximum at maximum $29,000 Rebecca is divorced and has custody of her 17 year old daughter, Susan. Susan has income of $2,500 and attended university for one semester. Rebecca paid Susan's tuition of $5,500 and Susan wants to transfer her tuition credits to Rebecca. Rebecca donated $1,800 to registered charities. She also donated $300 to each of the three major federal political parties. Eligible medical expenses after reimbursements were $850 for herself and $1,500 for Susan. Required: a) calculate Rebecca's tax liability before tax credits. b) Calculate Rebecca's maximum federal tax credits. c) Calculate Rebecca's Balance Owing or Refund Due.
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