Bob's only source of income is from his consulting business operated as a sole proprietorship. Assuming that Bob only qualifies for the Basic Personal Credit for 2021, what is the maximum amount of net income for tax purposes (NIFTP) that Bob can carn in 2021 without having any federal taxes payable for 2021?
Bob's only source of income is from his consulting business operated as a sole proprietorship. Assuming that Bob only qualifies for the Basic Personal Credit for 2021, what is the maximum amount of net income for tax purposes (NIFTP) that Bob can carn in 2021 without having any federal taxes payable for 2021?
Chapter13: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 32CE
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Transcribed Image Text:1. For 2021, Mary has earned net employment income of $50,000. From this income, Canada
Pension Plan (CPP) that had been withheld totaled $2,530. What is the amount reported as
an Other Deduction for 2021 relating to the "CPP Contribution Enhancement Deduction"?
A. $291
B. $233
С. S35
D. $345
E. $431
2. Bob's only source of income is from his consulting business operated as a sole
proprietorship. Assuming that Bob only qualifies for the Basic Personal Credit for 2021.
what is the maximum amount of net income for tax purposes (NIFTP) that Bob can carn in
2021 without having any federal taxes payable for 2021?
A. $2,071
B. $1.257
C. $49,020
D. $O
E. $13,808
Joe has Taxable Income of $219,000 for 2021. Joe made a $5,000 donation in 2021 to the
United Way (charitable organization). What is the Charitable Donations Tax Credit that Joe
can claim for 2021?
4.
A. $3,750
В. $1,422
С. $750
D. $1,521
E. $1,614
5. Kelly is a sole proprietor and during 2021 she attended three business related conventions.
Convention #1 cost $4,300; convention #2 cost $2,600; and convention #3 cost $3,100.
Each convention includes a cost of $600 for meals. All conventions have been paid for in
2021 except convention #1 which is still unpaid. What is the total maximum deduction
Kelly can claim against her 2021 business income relating to these conventions?
A. $5,100
B. $4,500
C. $5,700
D. $6,800
E. None of the above.
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