Victor is 63 years old and retired from his employment with Meter Ltd., a Canadian public corporation, on September 30, 20X8. Victor has asked you to help him prepare his 20X8, tax return and to advise him on certain other tax matters. Information regarding his financial activities for 20X8 is summarized below. 1. Victor’s gross salary to September 30, 20X8, was $85,000. From this amount, Meter deducted income tax of $22,000 and CPP and EI of $3,340. In addition to salary, Meter paid $9,000 directly into Victor’s RRSP at a local bank. Victor paid the annual RRSP administration fee of $100. During the year, until September 30, 20X8, Victor had the use of the employer’s automobile. Meter paid the monthly lease cost of $400 plus monthly operating expenses of $200.Victor drove the car a total of 16,000 km, of which 4,000 km was for personal use. 2. Victor suffered an illness in 20X8 and was off work for six weeks. During this period, the employer’s group sickness and accident insurance policy paid Victor $4,000 for lost salary. The entire premium of $500 was paid by Meter in 20X8. Due to his illness, Victor incurred and paid medical expenses of $3,000 in 20X8. 3. In 20X5, Meter granted Victor an option to acquire up to 5,000 of its shares at $8 per share. At that time, the shares were trading at the same price. In January 20X8, he purchased 2,000 shares when they were trading at $10 per share. He purchased an additional 1,000 shares in July 20X8, when they were trading at $15 per share. In November 20X8, Victor sold 2,000 shares at $20 per share after receiving a cash dividend (Eligible) of $800. 4. In 20X7, as a sideline, Victor began carving wood bowls for sale. He hoped to generate a small profit and keep himself occupied during his retirement. He made his first sales in 20X8, which resulted in a loss of $8,850. This excludes amortization but includes a deduction of $4,000 for the full cost of woodworking equipment purchased in 20X8. 5. On January 2, 20X8, Victor gifted his stamp collection to his grandson. He had acquired the collection over the past 15 years at a cost of $7,000. The collection has recently been appraised at $12,000. At the same time, he gifted a convertible bond valued at $20,000 to his wife. The bond had been purchased in 20X3 for $16,000. 6. On November 15, 20X8, Victor received $1,000 from an acquaintance in exchange for an option to purchase a small piece of land he had acquired four years earlier with the intention of constructing a rental property. For financial reasons, the construction plan had been terminated. 7. Victor is married and lives with his wife. She retired in 20X7 and will begin receiving her pension in 20X9. During 20X8, she earned interest income of $5,000, which includes $900 from the convertible bond she received from her husband. 8. Victor’s tax return from the previous year showed the following balances: Listed personal property losses forwarded to 20X8 $ 1,000 Maximum RRSP deduction available in 20X8 11,000 Required: 1. Determine Victor’s minimum net income for tax purposes in accordance with the format of section 3 of the Income Tax Act for the 20X8 taxation year. 2. Based on your answer to question 1, calculate Victor’s minimum federal income tax liability for the 20X8 taxation year. 3. Now that Victor is retired, can he make a contribution to his RRSP in 20X9? If so, estimate the maximum deduction available.