Reference no: EM132950959

Questions -

Q1. Mr. John Foret is 42 years old and divorced from his wife. His Net Income For Tax Purposes consists of rental income. He has retained the family home and both of the children of the marriage live with him. His daughter is 23 years old and has a physical disability that makes her wholly dependent on him for support. However, she does not qualify for the disability tax credit. His son is 14 years old and in good health. His daughter has no income during 2020, while his son has Net Income For Tax Purposes of $2,100. Determine Mr. Foret's maximum federal tax credits for 2020.

Q2. On January 1, 2020, Cundo Inc. has a balance in its Class 53 UCC of $750,000. During 2020, eligible assets with a capital cost of $150,000 are added to the Class. There were no disposals during the year. Determine the maximum Class 53 CCA for 2020, as well as the January 1, 2021 UCC.

Q3. Ms. Teason estimates that she uses 30 percent of her residence and 40 percent of her home phone and home internet service for employment/business related purposes. Maximum CCA on 100 percent of the house would be $15,000. Determine the maximum deduction that would be available to Ms. Teason assuming:

A. She is an employee with $80,000 in income (no commissions).

B. She is an employee with $80,000 in commission income.

C. She is self-employed and earns $80,000 in business income.