Carla Morrison (SIN: 805 125 127); was born on May 2, 1999. She is single...

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Accounting

Carla Morrison (SIN: 805 125 127); was born on May 2, 1999. She is single and lives at 10 Tucker Court, Toronto Ontario A4B CXD. Carla approached you and asked your help to prepare her Individual T-1 tax return for 2020.

Carla provided you with additional information for the period ending December 31, 2020 as given below:

A. Last year (2020) Carla finished high school and started working on sales at a local start-up company (Fresh Flowers Co) owned by a family friend. She excels at sales and was prepared to forgo school to help her family friend. (Please refer to the T4 Slip for details).

B. Throughout the year, Carla contributed $10,000 to a registered retirement savings plan (RRSP) at a local bank. Over the years she had accumulated RRSP room and it stood at $25,000. Carla has determined that she has the RRSP deduction limit to claim the full amount on her tax return.

To complete this return, the following information slip received for 2020 is provided herewith:

  • See below excerpt from T4 slip issued by Fresh Flowers Co.

FRESH FLOWERS

Box 14 Gross Pay

75,000.00

CARLA MORRISON

Box 16 CPP

2,898.00

T4 Statement of Remuneration Paid

Box 18 EI

856.36

Year 2020

Box 22 Tax Deducted

12,000.00

Instructions

REQUIRED: Based on the information given, prepare Carla Morrison's complete Income Tax and Benefit return for 2020

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