PropIncDemo - 1 COMPUTATION OF PROPERTY INCOME Bill Smith...

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1 COMPUTATION OF PROPERTY INCOME Bill Smith has provided you with the following information pertaining to 20X5. 1. 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 pension contributions. His wife, Alice, works part-time. Her annual salary is $14,000, from which CPP ($450) and EI ($350) is deducted. Bill and Alice have four children, all living at home: a. Bill Jr., age twenty-two, attended university full-time for eight months in 20X5 (net income $2,900, tuition $4,900, textbooks $850, miscellaneous expenses $75, and travel to and from school $150). b. Karen, age twenty-one, attended the University of Maine on scholarship ($6,000) for ten months in 20X5. Travel expenses to and from Maine were $750. Tuition was $8,000. Her texts cost $1,000. She had no other income in 20X5. (All amounts are in Canadian dollars.) c. Danny, age fifteen, attends high school. He earned $1,000 in 20X5, from which no deductions were made. d. Timmy, age three. Bill paid $1,750 to have Timmy baby-sat while Alice worked. 2. 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 Age Pension, as she was bedridden during the year. 3.
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This note was uploaded on 01/07/2012 for the course ACCT 4453 taught by Professor Gorman during the Spring '11 term at Dalhousie.

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PropIncDemo - 1 COMPUTATION OF PROPERTY INCOME Bill Smith...

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