Stuart Planter Is a Full-Time Teacher,and He Lives in the Country

question 4

Essay

Stuart Planter is a full-time teacher,and he lives in the country with his family.Stuart farms on a part-time basis.Stuart earned $85,000 in 20x6 at his full-time teaching job.During 20x6 he also incurred farm expenses totaling $12,000 and farm revenues totaling $8,000.
Stuart has asked you to help him prepare his 20x6 tax return,and provides you with the following additional information:
• Net capital losses from 20x5 totaled $10,000,and non-capital losses from 20x5 totaled $2,000.
• Stuart had the following amounts deducted from his pay during the year: CPP and EI of $3,452; and income tax of $19,000.
• Stuart contributed $5,000 to his TFSA,and $15,000 to a guaranteed investment certificate (GIC)which pays 4% annual interest.His first interest receipt for the GIC will be on June 30^th of 20x7.
• Stuart received a $1,000 non-eligible dividend in 20x6.
• Stuart's wife works full-time and earns $68,000 a year.
• Stuart had extensive dental work done in 20x6.The total cost was $7,500 and Stuart did not receive any reimbursement for the cost.
Required:
A)Using tax rates and amounts applicable for 2018,calculate the following:
1.Calculate Stuart's net income for tax purposes for 20x6 in accordance with Section 3 of the Income Tax Act.
2.Calculate Stuart's taxable income for 20x6.
3.Calculate Stuart's minimum federal tax liability for 20x6.(Round all numbers to zero decimal places.)
B)Explain why any items have been omitted.

• A)Using tax rates and amounts applicable for 2018,calculate the following:
• 1.Calculate Stuart's net income for tax purposes for 20x6 in accordance with Section 3 of the Income Tax Act.
• 2.Calculate Stuart's taxable income for 20x6.
• 3.Calculate Stuart's minimum federal tax liability for 20x6.(Round all numbers to zero decimal places.)
• B)Explain why any items have been omitted.

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Definitions:

Multigenerational

Involving or affecting several generations of a family or species.

Sterile Workers

In social insects (like ants, bees, and termites), these are individuals that do not reproduce but work for the colony by performing tasks such as foraging, building, or defending.

Species

The fundamental category in taxonomy, referring to a group of closely related organisms that can interbreed and produce fertile offspring.

Honeybee

A flying insect known for its role in pollination and, in the case of the most well-known species, the European honey bee (Apis mellifera), for producing honey and beeswax.