Calculate thefederal tax payable for the year

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Reference no: EM13901043

(Preferably you use the CRA forms to answer the question. CRA web site:https://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: $108,000

Actual dividends: $8,000 (these are "other than eligible" dividends)

Employee CPP contribution: $ 910

EI premium: $720

Registered Pension Plan Contribution: $7,400

Union dues: $600

RRSP contribution: $8,300

Prize from winning the lottery: $14,400

Life Insurance benefit payment received: $42,000

Interest income: $21,000

Tuition fees: $4,320 (was in school full time from January to April during the year)

Charitable donations: $4,890

Federal income tax deducted: $31,900

(Assume no more CPP contribution is required.)

Go to the CRA web site: https://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.

Reference no: EM13901043

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