It is early April 2018 and you, work in a mid-sized accounting firm in Regina, Saskatchewan. While you normally work on audits, you have requested to participate in the personal tax pool this year. The experience gained will be so valuable for your career.

You meet with the partner, Sam Brown, who has instructions for a special personal tax return to prepare.

Sam asks you to prepare the 2017 tax returns for his good friends Kathleen and Ken Smith. In Excel, you will need to calculate the federal income taxes payable, showing all components and calculations for the Smiths. You have been asked to ignore any CPP/QPP on self-employment income.

You have also been asked to write a short memo to Ken and Kathleen explaining the results of the tax calculation and when their returns are due. Sam also asked you to explain any evidence that the Canada Revenue Agency (CRA)may request for the Smiths claim for child care expenses and donations. He is aware of the fact that the CRA has been auditing these items more frequently and he wants to make sure the Smiths are ready to respond.

Sam has provided you with Ken and Kathleen's personal tax information in the appendix.

Attachment:- Appendix.rar