Question

AA A. K, X? A..A. 3 19 . . :. AaBbCel Aa Bb CcDdl Albedde Heading 1 Heading 2 Normal security updates, fixes, and improvements, choose Check for Updates Reverse mortgage Segregated funds Open mortgage Mini-Case 2 (2 marks) - Marie Every year Marie is concerned about having to repay the Old Age Security (OAS) pension that she receives. This is very stressful as she is on a very limited budget. She knows that if her income is over a certain amount, that she has to repay a large lump sum back through her tax return. In 2020, the OAS clawback or repayment calculation is based on the difference between Marie's net income and the threshold amount for the year. If her income is over the threshold amount, then she must repay 15 of that amount. Marie's monthly OAS pension is 5613.54 for 2020 and her net income is $105.000 Minimum Income Recovery Threshold Maximum Income Recovery Threshold 2020 $79,054 $128,137 a) Determine if Marie will have to repay her OAS and if so, calculate the amount that Marie will get to keep. (2 marks] Marie's calculation: (2 marks] Mini-Case C: (2 marks) - Lizzie Assume Lizzie purchased 1,000 shares of Bubblegumine. for a total of $5,300. She later decides to sell 700 shares once it has risen to $9.00. Calculate her capital gain and her taxable capital gain Calculation of the capital gain: (1 mark) Calculation of the taxable capital gain: (1 mark) Mini-Case D: (3 marks - 25 marks each) - Jenn English (Canada) Focus o n

Answer 1

Mini Case C

Amount invested by Lizzie in Bubblegum Inc. = $5300

Amount invested by Lizzie in one share = 5300/1000 = $5.3

Amount invested by Lizzie in 700 shares = $5.3*700 = $3710

Proceeds from sale by Lizzie = $700*9 = $6300

Capital Gain= Proceeds - Intial Cost = $6300-5300 = $1000

Taxable Capital Gain = Proceeds from 700 shares- Intial Cost from 700 shares = $6300-$3710 = 2590