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Assignment Problem Four - 3 (Individual Tax Payable - 5 Cases)
Mr. William Norris is 45 years old. The following five independent Cases make varying
assumptions for the 2012 taxation year with respect to Mr. Norris' marital status and number
of dependants. In all Cases, Mr. Norris earned employment income of $51,000 and his
employer withheld the required El premiums and CPP contributions.
Case A Mr. Norris is married and his wife, Susan, has Net Income For Tax Purposes
of $8,800. Susan's 73 year old mother, Bernice, lives with them. Bernice, an avid
skier, had Net Income For Tax Purposes of $16,000 for the year.
Case B Mr. Norris is married and his wife, Susan, has Net Income For Tax Purposes
of $4,410. They have one child, Martha, who is 10 years of age. Martha had no
income during the year. During the year, the family had medical expenses as follows:
William
$1,200
Susan
1,600
Martha
350
Total
$3,150
Case C Mr. Norris is married and his wife, Susan, has Net Income For Tax Purposes
of $4,500. They have a son, Allen, who is 19 years old and lives at home. He attends
university on a full time basis during 8 months of the year. Mr. Norris pays $4,000 for
Allen's tuition and $900 for required textbooks. Allen had employment income
during the summer months of $2,200. He will transfer any unused credits to his
father.
Case D Mr. Norris is not married and has no dependants. On receipt of a $300,000
inheritance in December, he donates $50,000 to his local hospital, a registered
charity. He chooses to claim $15,000 in 2012. In addition, he makes contributions to
federal political parties in the amount of $1,000.
Case E Mr. Norris is a single father. He has a daughter, Mary, who is 8 years old and
lives with him. Mary had no income for the year. Two years ago, Mr. Norris graduated
from a Canadian university. He currently has a Canada Student Loan outstanding. Mr.
Norris pays back this loan in monthly instalments of $300. During the year, he paid
$450 in interest on this loan.
Required: In each Case, calculate Mr. Norris' minimum federal Tax Payable for 2012. Indi-
cate any carry forwards available to him and his dependants and the carry forward provisions.
Ignore any tax amounts that Mr. Norris might have had withheld or paid in instalments.

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