In: Accounting
The following information applies to Tammy Taxpayer, employed by
Time Travellers Ltd. (a Canadian Controlled Private...
The following information applies to Tammy Taxpayer, employed by
Time Travellers Ltd. (a Canadian Controlled Private
Corporation).
Gross salary
|
$110,000
|
Bonus
|
50,000
|
Bonus based on Tammy’s hard work negotiating contracts on behalf
of the company (of which $15,000 was received on December 25, 2019
and the remainder will be received on January 15,
2020)
During 2019, Time Travellers withheld the following amounts from
her gross salary:
Registered Pension Plan
|
$6,000
|
Charitable Donations – United Way
|
2,000
|
Federal and Provincial Income Taxes
|
28,750
|
- Tammy’s employer made a $6,000 matching contribution to her
registered pension plan.
- Travelling expenses for a 3 week trip for Tammy were reimbursed
by Time Traveller. The cost of the entire trip was $3,000. Tammy
spend one week attending a business conference and the other two
weeks she stayed on as a vacation
- Time Traveller provided Tammy with a Mercedes Benz, which she
used for 10 months of the year for work and pleasure. The following
pertains to her automobile usage:
Monthly lease payment
|
$800
|
Kilometers driven for employment purposes
|
29,000 kms
|
Total kilometers driven during the year
|
32,000 kms
|
Operating costs paid by the employer
|
$4,300
|
- Tammy was required to pay professional association dues of
$1,500 for the year.
- Tammy incurred the following expenses while on company business
trips throughout the year:
Hotel accommodations
|
$3,500
|
Airline fare
|
6,400
|
Meals
|
2,300
|
All of these expenses were charged to Tammy’s personal credit
card and reimbursed by the employer.
- Tammy was awarded a Shirley Elford glass sculpture, valued at
$900, for exceeding her sales targets by 20%.
- Tammy was given one of the limited underground parking spots in
her building. The cost of the parking spot is $1,500 and is paid by
Time Travellers Ltd.
- Tammy exercised her stock options in 2019. She acquired 2,000
shares on August 1, 2019 for $15 per share when the shares were
trading for $22 per share. The options were granted in 2018, when
the shares were trading for $14 per share. On November 1, 2019,
Tammy sold her shares for $25 per share.
- Time Travellers paid $300 for Tammy’s income tax
preparation.
REQUIRED:
Calculate the amount that would be included in
calculation of Tammy Taxpayer’s Net Employment
Income for taxation purposes for the 2019 taxation year.
PLEASE SHOW EACH ITEM THAT MAKES UP NET EMPLOYMENT INCOME.