Preferably you use the CRA forms to answer the question. CRA

QUESTION

(Preferably you use the CRA forms to answer the question. CRA web site:http://www.cra-arc.gc.ca/formspubs/t1gnrl/menu-eng.html). Calculate theFederal tax payable for the year 2010 for Mrs. Smith, given the following information:Employment income: $108,000Actual dividends: $8,000 (these are œother than eligible dividends)Employee CPP contribution: $ 910EI premium: $720Registered Pension Plan Contribution: $7,400Union dues: $600RRSP contribution: $8,300Prize from winning the lottery: $14,400Life Insurance benefit payment received: $42,000Interest income: $21,000Tuition fees: $4,320 (was in school full time from January to April during the year)Charitable donations: $4,890Federal income tax deducted: $31,900(Assume no more CPP contribution is required.)Go to the CRA web site: http://www.cra-arc.gc.ca/formspubs/t1gnrl/menu-eng.html to find the Tax Guide, forms, personal tax brackets and marginal tax rates for 2010.

ANSWER

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