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Ms. Victoria Johnson had a tumultuous year in 2020. She broke her engagement early in the year and quit her job. She moved to a resort area to take a waitress job and to start up a fitness instruction business. She has had the following items correctly calculated and classified as either inclusions, deductions or tax credits for the purposes of determining her taxable income and federal tax. Inclusions: Board and lodging provided by employer during busy season of resort $8000 Business revenue from fitness instruction fees 2000 Gratuities as a waitress I 12,600 Interest on Canada Savings Bonds 775 Rental revenue 6000 Salary received as a waitress 12,000 Taxable capital gain 3,750 Retiring allowance from previous employer 800 Deductions, Losses, or Tax Credits: Allowable capital loss 4500 Capital cost allowance on rental building 1200 Charitable gifts tax credit 260 Business expenses of earning fitness instruction fees, 2275 Interest-funds borrowed to pay expenses to earn fitness instruction fees 75 Maintenance on rental property 5,800 Moving expenses 3,565 Non-capital losses from previous year 600 Union dues. 100 Non-capital Union dues. 100 REQUIRED (A) Determine the net income based on the above correct information using the ordering rules in sections 3. Ms. Victoria Johnson had a tumultuous year in 2020. She broke her engagement early in the year and quit her job. She moved to a resort area to take a waitress job and to start up a fitness instruction business. She has had the following items correctly calculated and classified as either inclusions, deductions or tax credits for the purposes of determining her taxable income and federal tax. Inclusions: Board and lodging provided by employer during busy season of resort $8000 Business revenue from fitness instruction fees 2000 Gratuities as a waitress I 12,600 Interest on Canada Savings Bonds 775 Rental revenue 6000 Salary received as a waitress 12,000 Taxable capital gain 3,750 Retiring allowance from previous employer 800 Deductions, Losses, or Tax Credits: Allowable capital loss 4500 Capital cost allowance on rental building 1200 Charitable gifts tax credit 260 Business expenses of earning fitness instruction fees, 2275 Interest-funds borrowed to pay expenses to earn fitness instruction fees 75 Maintenance on rental property 5,800 Moving expenses 3,565 Non-capital losses from previous year 600 Union dues. 100 Non-capital Union dues. 100 REQUIRED (A) Determine the net income based on the above correct information using the ordering rules in sections 3

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