15 X V fx Taylor's company contributed $2,700 on her behalf to the Company's RPP. B C D E F G H Question 2: Net Income For Tax Purposes (22 marks) Do not add o Required: Determine Taylor's net income for tax purposes for the year ended December 31, 2020. Answer SPACE FO Enter the impact on Taylor's net income for tax purposes in the blue boxes. If there is no impact, leave the box blank. 1 Taylor works for a large Canadian public pharmaceutical company (KKM) and earns a salary of $199,000. He also earned a bonus of $40,000 in 2020. At December 31, 2020 $25,000 of the bonus had been paid. 2 Taylor's employer withheld the following amounts from her Income Taxes 45,000 !CPP 2,898 EI 856 Registered Pension Plan (RPP) Contributions 2,700 Professional membership dues 1,200 3 Taylor's company contributed $2,700 on her bithalf to the Company's RPP. 4 KKM provides life insurance coverage to all of its employees. The premiums paid by KKM on Taylor's behalf cost $450 for the year. 5 On January 15, 2020 Taylor was granted options to buy 2,500 shares at a price of $15.00 per share. At this Itime the shares are trading at $16.00 per share. Taylor exercises all of the options when the shares are trading at $17.50 on July 15th. In September, the share price spikes and Taylor sells all his shares for $19.25 per share. 6 !Taylor holds other investments: .His shares in Bob's Telephone Co. pay $2,600 eligible dividends. . His shares in Orange Tech Co. pay $5,100 non-eligible dividends. . He purchased a $90,000, 4%, term deposit on April 1, 2019. This four-year term deposit will pay interest jupon maturity. Record each of the investment impacts on income, if any, on a separate line. iTaylor borrowed from his line of credit to purchase these investments. The interest on his line of credit was $1,945 in 2020. 8 Taylor has owned a residential rental property since 2014. The beginning UCC is $192,500. A Cover sheet - please read Q1 Select destination and press ENTER or choose Paste