In 2023, Sophie had employment income of $95,000 from a large Canadian public company that has annual gross revenue of $600 million. She is granted access to a stock option plan in November 2022 where she can acquire 15,000 shares of the company for $25 each beginning in 2023. The FMV of the shares at the time of the stock option plan is granted is $20 each. Sophie purchases all 15,000 shares of the stock option plan for $25 in March 2023 when the shares are trading for $28. Sophie then sells all of the shares for $30 in February 2024.



In addition, she had the following income in 2023.



Interest income

$2,500

Taxable capital gain (not from option stocks)

$12,000

Sole-proprietorship business income

$25,000

Unrestricted farming income

$9,000

Limited partnership income

$5,000



Sophie approached to you for tax advises. After interviewing her, you explored that she had some loss carry forward balances from 2022 as follows:



Loss carry forward balances on December 31, 2022

Taxable capital loss

$14,000

Sole-proprietorship business loss

$35,000

Allowable business investment loss (ABIL)

$12,000

Unrestricted farming loss

$11,000

Limited partnership loss

$7,500



She has a basic personal amount (BPA) credit of $15,000. She donated $1,500 in 2023.



Required:

Calculate net income for 2023.
Show the breakdown of Division C deductions for 2023.
Calculate taxable income for 2023.
Show the carry forward balance at the end of 2023.
Calculate tax payable