Question

Jamie Lee Jackson, age 26, is in her last semester of college and is waiting for graduation day, just around the corner! It is the time of year again when Jamie Lee must file her annual income taxes. Last year, she received an increase in salary from the bakery, which brought her gross monthly earnings to $2,550 and also opened up a TFSA, to which she contributed $300. Her savings accounts earn 2 percent interest per year, and she also had received an unexpected $1,500 gift from her great aunt. Jamie was also lucky enough last year to win a scholarship of $2,000, most of which was deposited into her regular savings account after paying off her credit card balance.

Current Financial Situation

• Assets:

• Chequing account: $2,250

• Savings account: $6,900 (interest earned last year: $125)

• Emergency fund savings account: $3,900 (interest earned last year: $75)

• TFSA balance: $350 ($300 contribution made last year)

• Car: $3,000

Liabilities:

• Student loan: $10,800

• Credit card balance: $0

Income:

• Gross monthly salary: $2,550

Monthly Expenses:

• Rent obligation: $275

• Utilities obligation: $135

• Food: $130

• Gas/maintenance: $110

• Credit card payment: $0

Savings:

• Regular savings monthly deposit: $175

• Rainy-day savings monthly deposit: $25

Entertainment:

• Cake decorating class: $40

• Movies with friends: $60

1. What impact on Jamie Lee’s income would the gift of $1,500 from her great aunt have on her adjusted gross income? Would there be an impact on the adjusted gross income with her $2,000 scholarship? Explain your answer. (6 marks)