1- Which ONE of the following is NOT taxable as employment income if received by an employee?

Shares in the employer corporation

Use of the employer-owned condominium in Florida for the employee and her family for one week for a personal family vacation, at no cost

Golf clubs received from a customer in appreciation for excellent customer service

Payment by the employer of the employees tuition for an MBA degree to allow the employee to develop skills to be promoted to upper management

2- On April 1, 2019, E Ltd. made a loan of $100,000 to Mr. Walker, a new employee of the corporation, to assist him in purchasing a residence when he moved from Quebec to commence employment in British Columbia. The loan bears interest at 2%, which is to be paid monthly. The principal of the loan is to be repaid in full on April 1, 2028. The prescribed interest rate on April 1, 2019, was 4%. Assuming that the prescribed interest rate throughout 2022 was 3% and only the interest owing on the loan is paid each month, which one of the following amounts represents the increase in Mr. Walkers employment income in 2022 due to the loan?

2000

4000

1000

3000

3-

This year, Bobs employer provided him with an employer-owned automobile costing $55,000 (including HST) for 12 months. His kilometers for personal use were 14,000 out of a total of 19,000 kilometers. Operating costs paid by his employer during this year were $3,700 (including HST) and the stated rate is .29 per km.

For each option, indicate if true or false with reasons,

(a) Bobs standby charge is $13,200.

(b) Bobs minimum operating cost benefit is $2,726.

(c) Bobs minimum operating cost benefit is $4,060.

(d) Bob can elect to use 1/2 of his standby charge as his operating cost benefit.