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John is employed by Grobler Inc, a CPC. He has requested your assistance ir preparing his 2022 income tax return. Information regarding John's financial activities for 2022 is outlined in Exhibit 1-1. Selected information from his 2021 return is provided in Exhibit 1-2, as received from the Canadian Revenue Agency (CRA). Required : a. Calculate John's Division B : Minimum net income for tax purposes in accordance with the format of Section 3 of the Income Tax Act, for the 2022 tax year b. Calculate John's Division C : Minimum taxable income for the 2022 taxation year. c. Calculate the Division E : Dividend Tax Credit amounts available for deduction from Federal Tax Payable for the 2022 taxation year. 1. In 2022, John's total salary earned at Grobler Inc, for the months January to November 2022 , was $193,200. Due to administrative problems, Grobler Inc only paid his November 2022 salary on 22 January 2023. In addition Grobler Inc contributed $27,300 for John towards the company's group accident insurance plan. He was transferred from the Toronto office where he had been working, to the Kelowna office of the company, starting 01 December 2022 (meets >40km requirement), and incurred allowable qualifying moving expenses of $35,300. His salary received for December 2022 amounted to $21,000. 2. In 2022 , John had the following additional disbursements and receipts : Legal fees related to a dispute with his neighbour about a drone flying over his backyard 2,820 Contributions to his personal RRSP 8,200 Received a dividend from an investment in the ordinary shares of a company incorporated in Latvia, net after 7% with-holding dividend tax 656 Dividend received from ZOL Inc, a Canadian CCPC 963 3. In August 2021, Grobler Inc granted John a stock option plan when the shares were valued at $167 each. On 18 May 2022, John exercised this option and purchased 630 shares of the company at $179 each. On that date, the market value of the shares was $208. On 05 September 2022 Grobler Inc declared and paid stock dividends at 1 share per every 9 shares held, at a time when the fair market value per share was $192. He sold 190 of these shares on 09 October 2022 , for $247 per share. 4. John also operated a part-time options trading business. During 2022 he had revenue earnings of $33,200. His total allowable business operating expenses incurred during 2022 was $44,900. SELECTED 2021 CANTAX SCHEDULES Non Capital Losses from a previous year : Maximum amount of Non-Capital Loss Carry Forward available for deduction in 2022 : 2,645 Capital Losses from a previous year : Maximum amount of Capital Loss Carry Forward available for deduction in 2022: 3,723 Registered Retirement Savings Plan (RRSP) : Maximum RRSP Deduction Available in 2022 33,114 + ine it twe-1. in 38. The amount related to Number 38 (Local Eligible Dividend Tax Credit received from CPC) is: 0. The amount related to Number 40 (Foreign Non-business Tax Credit) is: John is employed by Grobler Inc, a CPC. He has requested your assistance ir preparing his 2022 income tax return. Information regarding John's financial activities for 2022 is outlined in Exhibit 1-1. Selected information from his 2021 return is provided in Exhibit 1-2, as received from the Canadian Revenue Agency (CRA). Required : a. Calculate John's Division B : Minimum net income for tax purposes in accordance with the format of Section 3 of the Income Tax Act, for the 2022 tax year b. Calculate John's Division C : Minimum taxable income for the 2022 taxation year. c. Calculate the Division E : Dividend Tax Credit amounts available for deduction from Federal Tax Payable for the 2022 taxation year. 1. In 2022, John's total salary earned at Grobler Inc, for the months January to November 2022 , was $193,200. Due to administrative problems, Grobler Inc only paid his November 2022 salary on 22 January 2023. In addition Grobler Inc contributed $27,300 for John towards the company's group accident insurance plan. He was transferred from the Toronto office where he had been working, to the Kelowna office of the company, starting 01 December 2022 (meets >40km requirement), and incurred allowable qualifying moving expenses of $35,300. His salary received for December 2022 amounted to $21,000. 2. In 2022 , John had the following additional disbursements and receipts : Legal fees related to a dispute with his neighbour about a drone flying over his backyard 2,820 Contributions to his personal RRSP 8,200 Received a dividend from an investment in the ordinary shares of a company incorporated in Latvia, net after 7% with-holding dividend tax 656 Dividend received from ZOL Inc, a Canadian CCPC 963 3. In August 2021, Grobler Inc granted John a stock option plan when the shares were valued at $167 each. On 18 May 2022, John exercised this option and purchased 630 shares of the company at $179 each. On that date, the market value of the shares was $208. On 05 September 2022 Grobler Inc declared and paid stock dividends at 1 share per every 9 shares held, at a time when the fair market value per share was $192. He sold 190 of these shares on 09 October 2022 , for $247 per share. 4. John also operated a part-time options trading business. During 2022 he had revenue earnings of $33,200. His total allowable business operating expenses incurred during 2022 was $44,900. SELECTED 2021 CANTAX SCHEDULES Non Capital Losses from a previous year : Maximum amount of Non-Capital Loss Carry Forward available for deduction in 2022 : 2,645 Capital Losses from a previous year : Maximum amount of Capital Loss Carry Forward available for deduction in 2022: 3,723 Registered Retirement Savings Plan (RRSP) : Maximum RRSP Deduction Available in 2022 33,114 + ine it twe-1. in 38. The amount related to Number 38 (Local Eligible Dividend Tax Credit received from CPC) is: 0. The amount related to Number 40 (Foreign Non-business Tax Credit) is

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