Chris Nowicki Was Employed by REAL Co Required:
Determine Chris's Minimum Net Income for Tax Purposes for from January

question 7

Essay

Chris Nowicki was employed by REAL Co.in 2020.Chris earned $35,000 from January 1 to October 10 before transferring with the company to a town 1312 kilometres away.The new position began on November 1, 2020, and paid Chris a gross salary of $4000 per month.
The support payments are in accordance with Chris's divorce agreement, which calls for monthly support payments of $1,500 for Chris and $1,500 for Chris's child.
Additional information:
Assumed mileage rates:
$\begin{array}{|l|l|}\hline \text { New location: } & 50 \text { cents per kilometer } \\\hline \text { Previous location: } & 47 \text { cents per kilometer } \\\hline\end{array}$ Required:
Determine Chris's minimum net income for tax purposes for 2020 in accordance with Section 3 of the Income Tax Act.Show all calculations for the moving expenses and identify any amounts to be carried-forward.

Chris's moving expenses included:
1.$7,000 for a moving van
2.$300 for meals for Chris and Chris's 4-year-old child on the four-day drive
3.$700 for accommodations on the four-day trip
4.$3000 ($150 per day) for 20 nights of temporary lodging in the new location until an apartment was available
5.$550 in gas receipts
Chris was not reimbursed for the move.
Chris also received the following in 2020:
$\begin{array}{|l|l|}\hline \begin{array}{l}\text { Support payments from a former spouse } \\(\$ 3,000 \times 12)^{*}\end{array} & \$ 36,000 \\\hline \text { Inheritance } & 25,000 \\\hline \begin{array}{l}\text { Scholarship for part-time tuition in a } \\\text { qualifying education program (used to } \\\text { cover tuition) }\end{array} & 2,000 \\\hline \text { RRSP withdrawal (not withdrawn under } & 15,000 \\\text { the Lifelong Learning Plan or Home } & \\\text { Buyer's Plan) } & 500\\\hline\end{array}$

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Definitions:

Beck

Refers to Aaron T. Beck, an influential figure in the field of psychology known for his work on cognitive therapy and depression.

Ellis

Albert Ellis was an influential psychologist who founded Rational Emotive Behavior Therapy (REBT), a precursor to Cognitive Behavioral Therapy (CBT), focusing on identifying and changing irrational beliefs.

Stress-inoculation Therapy

A psychological therapy intended to help individuals develop skills to cope with stressful situations by anticipating and preparing for stressors.

Rational Emotive Therapy

A form of psychotherapy that identifies self-defeating thoughts and feelings, challenges the rationality of those feelings, and replaces them with healthier, more productive beliefs.