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BC Company started their business on January 1, 2021. ABC Company had two employees in the year 2020: Jane and Larry. The payroll is run semi-monthly.
Larry estimates that his 2021 net income will be $10,000 for TD-1 purposes.
Assume Jane and Larry work the entire period from January 1 to December 31, 2021 or 12 month.
The following payroll data was provided for Jane and Larry:
| | Jane(80 yrs. old) | Larry(75 yrs. Old and Disabled) |
| Annual Salary | $24,000 | $48,000 |
| Income tax Deducted for the entire year: | $2,000 | $10,000 |
| Spouse | | 60 years old Estimated Net Income: $50,000 |
| | No Children | No Children |
| Tuition | none | $2,000, Seneca Part Time 4 months. |
| Private Pension Income from Sun Life Assurance. | none | Estimated, $5,000 per year (Pension Income) |
| Registered Pension Plan (RPP) Deduction | $1,000 per year | $5,000 per year |
With regards the this year's Company's T4 SUMMARY for all employees, the following choice is the most accurate/correct?
| | | Box 14 is $72,000 Box 88 is 2 Box 20 is $6,000 Box 27 is $0 |
| | | Box 14 is $72,000 Box 88 is 2 Box 20 is $5,000 Box 27 is $0 |
| | | Box 14 is $48,000 Box 88 is 2 Box 20 is $6,000 Box 27 is $0 |
| | | Box 14 is $72,000 Box 88 is 2 Box 20 is $6,000 Box 27 is $1,077 |
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