Theodore Is 37 Years Old

question 7

Essay

Theodore is 37 years old. He earns $97,000 a year at his job as a financial
analyst. His CPP and EI contributions totaled $3,499. Last year he enrolled in part-time studies at his local university. He was enrolled for eight months and
his tuition fees totaled $1,500. Theodore donated $2,000 to Ducks Unlimited (a registered charity for tax purposes), and $800 to a federal political party.
(Theodore has made annual contributions to these organizations for the past five years.) He spent a total of $4,200 on eyeglasses, dental care and prescriptions, none of which was reimbursed. Theodore's wife did not work during the year, as she was enrolled in full-time studies for eight months as a nursing student. Her
tuition fees for the year were $8,000. She transferred as much of her tuition and education amount allowable to Theodore. Theodore had a $2,000 non-capital los carry-forward from the previous year that he incurred during the wind-up of his proprietorship. Theodore and his wife do not have any children.
Required:
Calculate Theodore's federal tax payable for the current year. (Assume a 2016 tax year.)

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Definitions:

Automobile Manufacturer

A company engaged in the designing, production, marketing, and selling of motor vehicles.

Earnings Per Share

A financial ratio indicating the portion of a company's profit allocated to each outstanding share of common stock.

Income Statement

The income statement is a financial statement that shows a company's revenues and expenses over a specific period, demonstrating how the revenues are transformed into net income or loss.

Disclosed

Information that has been made known or revealed, typically referring to facts that were previously private or confidential.