COMPUTATION OF PROPERTY INCOME
Bill Smith has provided you with the following information pertaining to 20X5.
Bill is a firefighter employed by the Fredericton City Fire Department. His
20X5 salary is $68,000, from which the Fire Department deducted
maximum CPP and EI, as well as $150 per month registered
contributions. His wife, Alice, works part-time. Her annual
$14,000, from which CPP ($450) and EI ($350) is
deducted. Bill and Alice
have four children, all living at home:
Bill Jr., age twenty-two, attended university full-time for eight
months in 20X5 (net income $2,900, tuition $4,900,
miscellaneous expenses $75, and travel to and from
Karen, age twenty-one, attended the University of Maine on
scholarship ($6,000) for ten months in 20X5. Travel
and from Maine were $750. Tuition was $8,000. Her
$1,000. She had no other income in 20X5. (All
amounts are in
Danny, age fifteen, attends high school. He earned $1,000 in 20X5,
from which no deductions were made.
Timmy, age three. Bill paid $1,750 to have Timmy baby-sat while
Bill also supported his infirm aunt in his home. He estimates her upkeep
amounted to $50 per week. She had no income, except $6,500 Old
Pension, as she was bedridden during the year.