Question

Molly live in Canada, She is a single parent with two kids the age of 4 and 7. She had the following cash inflow: -Employment income 20,000 -Dividends from CCPC: 10,000 She had the following cash outflow: -RRSP contributions: 1230 Molly had $1,200 federal tax withheld from her employment income, but did not pay any installments. The following year, Molly sold the following: -Share capitals POD = 1270, ACB = 2300 -Non capital assets 4000/12500 She had a previous net capital loss of $6,000 Throughout the year, she had the following medical expenses: -Molly 750 -Both children 1500 (they had no net income) Molly also made political contributions of $300 Required:

1) Determine the net employment income

2) The taxable income

3) The refundable tax credit or due balance

4) Omitted and brief summary why

Answer 1