13 Question 4 14 Lauren McMann is an advanced mountaineer and outdoor adventure specialist. In 2021, a headhunting firm connected her with Whitehorse Expeditions Ltd. (WEL) a 15 Other information relevant to 2021 is as follows: 16 1 Lauren put her house on the market on January 5, 2021, and at the urging of the listing agent, she accepted an offer resulting in a loss on this property. WEL agreed to compensate her for Answer Supporting Calculations M one-half of any loss on the sale of her home. The payment was made on May 30, 2021. 7 Proceeds on sale of home 8 9 Original cost of home Gain (loss) 345,400 382,500 (37,100) 2 In order to help Lauren with the purchase of her new townhouse, WEL provided her with a $180,000, 0.75% housing loan. The funds are provided to Lauren on February 1, 2021. Assume that the prescribed rate for all of 2021 is 1 percent. Use the number months to calculate the low interest loan benefit. 4 During 2021, Lauren earned a salary of $105,000 as well as commissions of $8,000. The Company withheld the following amounts from her salary: Income Taxes CPP 30 B 31 Disability insurance premiums 32 Registered Pension Plan (RPP) Contributions 33 33,600 3,166 890 1,000 3,600 345 WEL contributed $4,100 on Lauren's behalf to the Company's RPP. 35 6 WEL provides group medical coverage to all of its employees. The private health plan premiums paid by WEL on Lauren's behalf cost $1,020 for the year. During the year, Lauren received two non-cash gifts from WEL, a season ski pass worth $900 and a Christmas gift certificate to a local spa for $175. Record the gifts separately, if taxable, on the two lines provided. 8 WEL provides life insurance coverage to all of its employees. The premiums paid by WEL on Lauren's behalf cost $500 for the year. 9 Lauren was granted options to buy 60 of the company's shares at $10 per share when she joined the staff of WEL. At that time, the shares had an assessed fair market value of $13 per share. 44 5 Lauren was granted options to buy 60 of the company's shares at $10 per share when she joined the staff of WEL. At that time, the shares had an assessed fair market value of $13 per share. On May 10, 2021, the shares are trading at $16 per share. She acquires 60 shares on that date and is still holding these shares on December 31. 10 Lauren is a part of the Canadian Mountaineers Association, and paid professional dues of $380 for 2021. 311 Due to a dog sledding accident Lauren breaks her collar bone and was off work for three months during 2021. She received a total of $6,100 in payments from the disability insurance company during this period. The premiums are $1000/year and were withheld from Laura's pay. Show the disability benefit, and premiums separately (if applicable). For the auto benefit enter each calculation separately into column F. Leave a row blank if not required. 12 WEL provides Lauren with a vehicle that she uses to drive her clients on tours. The vehicle was used by Lauren throughout 2023, aside form the three months she was off work. WEL required her to return the car and keys. WEL pays all operating and maintenance costs, a total of $2,300 during the year. Details of the vehicle and kilometers driven are below. Total km drive Personal km driven Cost of car (including GST and PST) 34,100 13,640 46,500 60 61 Standby charge (reduced, if applicable) plus 62 Operating cost benefit, which is the lesser of 63 1/2 of reduced standby charge 64 Or $0.27/km x personal km 65 66 Other-Indicate in column G 13 Lauren has renovated in order to have a separate area in her townhouse to be used exclusively to signing the contracts and meeting with clients. WEL will provide her with a signed form 12200 stating that she is required to pay for certain employment expenses without reimbursement and use a portion of her home for work. She used this work space between February 1 and December 31, 2021. 67 68 69 Work space related expenditures are as follows: 70 Mortgage Interest (total for 11 months) 9,724 71 Utilities (total for 11 months) 3,135 72 Home Insurance (total for 11 months) 2,376 73 Property Tax (total for 11 months) 5,172 74 Office Furniture 7,837 75 If a deduction is not allowed, leave blank Show the deductions as negative. Multiply the total at the end. 6 7 8 Total % square footage. Total Deduction 25% Work space related expenditures are as follows: Mortgage Interest (total for 11 months) 9,724 Utilities (total for 11 months) 3,135 Home Insurance (total for 11 months) 2,376 Property Tax (total for 11 months) Office Furniture 5,172 7,837 Total % square footage Total Deduction If a deduction is not allowed, leave blank Show the deductions as negative. Multiply the total at the end. 25% equired: Determine Lauren's net employment income for 2021. Net employment income Please use the SUM function to show your net employment income. Instructions: if there is no tax impart, leave the answer cell blank. (These are the blue "Answer" boxes below) If an amount reduces net employment income, enter as a negative Please use formulas for your answers. Do not calculate these outside of excel, and hardcode them. You can copy and paste your answer into the supporting calculations box and put an apostrophe in front, so that I can see the formula. Example (this is NOT a part of the question). Mr. Craig Webber is provided with a car that is leased by his employer. The monthly lease payments for 2021 are $600. During 2021, he drives the automobile a total of 30,000km of which 22,000km are employment related. The automobile is available for the entire year. His employer paid a total of 59,200 in operating costs. Calculate Mr. Webber's minimum 2021 taxable benefit for the use of the automobile. Answer Supporting Calculations : 13 Question 4 10106 14 Lauren McMann is an advanced mountaineer and outdoor adventure specialist. In 2021, a headhunting firm connected her with Whitehorse Expeditions Ltd. (WEL) a 15 Other information relevant to 2021 is as follows: Lauren put her house on the market on January 5, 2021, and at the urging of the listing agent, she accepted an offer resulting in a loss on this property. WEL agreed to compensate her for one-half of any loss on the sale of her home. The payment was made on May 30, 2021. Answer Supporting Calculations Marks Av 17 Proceeds on sale of home 18 Original cost of home 19 Gain (loss) 20 21 345,400 382.500 37,100) 223 24 25 2 in order to help Lauren with the purchase of her new townhouse, WEL provided her with a $180,000, 0.75% housing loan. The funds are provided to Lauren on February 1, 2021. Assume that the prescribed rate for all of 2021 is 1 percent. Use the number months to calculate the low interest loon benefit 4 During 2021, Lauren earned a salary of $105,000 as wellas commissions of $8,000. The Company withheld the following amounts from her salary: 26 27 28 Income Taxes 29 CPP 33,600 3,166 27 28 Income Taxes 29 CPP 30 31 Disability insurance premiums 32 Registered Pension Plan (RPP) Contributions 33 33,600 3,166 890 1,000 3,600 345 WEL contributed $4,100 on Lauren's behalf to the Company's RPP. 35 36 37 38 6 WEL provides group medical coverage to all of its employees. The private health plan premiums paid by WEL on Lauren's behalf cost $1,020 for the year 7 During the year, Lauren received two non-cash gifts from WEL, a season ski pass worth $900 and a Christmas gift certificate to a local spa for $175. 39 40 Record the gifts separately, if taxable, on the two lines provided. 41 42 43 8 WEL provides life insurance coverage to all of its employees. The premiums paid by WEL on Lauren's behalf cost $500 for the year. 9 Lauren was granted options to buy 60 of the company's shares at $10 per share when she joined the staff of WEL. At that time, the shares had an assessed fair market value of $13 per share. On May 10, 2021, the shares are trading at $16 per share. She acquires 60 shares on that date and is still holding these shares on December 31 46 47 10 Lauren is a part of the Canadian Mountaineers Association, and paid professional dues of $380 for 2021. 40 11 Due to a dog sledding accident Lauren breaks her collar bone and was off work for three months during 2021. She received a total of $6,100 in payments from the disability insurance company during this period. The premiums are $1000/year and were withheld from Laura's pay. 49 50 51 52 Show the disability benefit, and premiums separately (if applicable). 53 54 For the auto benefit enter each calculation separately into column F. Leave a row blank if not required. 12 WEL provides Lauren with a vehicle that she uses to drive her clients on tours. The vehicle was used by Lauren throughout 2021, aside form the three months she was off work. WEL required her to return the car and keys. WEL pays all operating and maintenance costs, a total of $2,300 during the year. Details of the vehicle and kilometers driven are below. 55 56 Total km drive 57 Personal km driven 58 Cost of car (including GST and PST) 59 60 61 Standby charge (reduced, if applicable) plus 62 Operating cost benefit, which is the lesser of: 63 1/2 of reduced standby charge: 64 Or $0.27/km x personal km 65 Other Indicate in column G 34,1001 13,640 46,500 66 13 Lauren has renovated in order to have a separate area in her townhouse to be used exclusively to signing the contracts and meeting with clients. WEL will provide her with a signed form T2200 stating that she is required to pay for certain employment expenses without reimbursement and use a portion of her home for work. She used this work space between February 1 and December 31, 2021. 67 58 59 Work space related expenditures are as follows: 0 Mortgage Interest (total for 11 months) 9,724 Utilities (total for 11 months) 3,135 2 Home Insurance (total for 11 months) 2,376 3 4 Property Tax (total for 11 months) Office Furniture 5,172 7,837 If a deduction is not allowed, leave blank Show the deductions as negative. Multiply the total at the er Total % square footage Total Deduction 25% Required: Determine Lauren's net employment income for 2021. Net employment income! Please use the SUM function to show your net employment income. Instructions: if there is no tax impact, leave the answer cell blank. (These are the blue "Answer" boxes below) If an amount reduces net employment income, enter as a negative. Please use formulas for your answers. Do not calculate these outside of excel, and hardcode them. You can copy and paste your answer into the supporting calculations box and put an apostrophe in front, so that I can see the formula. Example (this is NOT a part of the question). Mr. Craig Webber is provided with a car that is leased by his employer. The monthly lease payments for 2021 are $600. During 2021, he drives the automobile a total of 30,000km of which 22,000km are employment related. The automobile is available for the entire year. His employer paid a total of $9,200 in operating costs. Calculate Mr. Webber's minimum 2021 taxable benefit for the use of the automobile. Answer Supporting Calculations