1.GST On Taxable Benefits

Mr. John Lamarche, as the result of an outstanding sales achievement within his organization, is awarded two airline tickets to Vancouver. His employer pays a travel agent $5,275, plus $264 in GST for the tickets. What is the amount of Mr. Lamarche's taxable benefit?

2.Taxable Benefits - Employer Owned Automobile

Ms. Robin Nestor is provided with an automobile that is owned by her employer. The employer purchased the car in 2018 for $54,000, plus $7,020 in HST. During 2019, she drives the car a total of 72,000 kilometers, of which 67,000 kilometers were employment related. The automobile was used by Ms. Nestor for 268 days during 2019. When she was not using the automobile, her employer required that it be returned to their premises. Calculate Ms. Nestor's minimum taxable benefit for the use of the automobile.

3.Taxable Benefits - Employer Leased Automobile

During 2019, Mr. Sam Warren is provided with an automobile that is leased by his employer. The monthly lease payment is $791 per month. This figure includes $91 HST. During the year, the car is used by Mr. Warren for a total of 310 days. When he is not using the car, his employer requires that it be returned to their premises. During this period, he drives the car a total of 40,000 kilometers, 22,000 of which are employment related. Calculate Mr. Warren's minimum taxable benefit for the use of the automobile.

4.Stock Options - Public Company

Mr. John Savage has been employed for many years by a Canadian public company. Several years ago, Mr. Savage was granted options to acquire 4,000 shares of his employer's stock for $54 per share. At this time, the shares have a fair market value of $50 per share. On July 15, 2018, Mr. Savage exercises all of these options. At this time, the fair market value of the shares is $82 per share. In February 2019, he sells all of the shares for $97 per share. Calculate the effect of the transactions that took place during 2018 and 2019 on Mr. Savage's Net Income For Tax Purposes and Taxable Income. Where relevant, identify these effects separately.

5.Stock Options - CCPC

Note this is the same as Exam Exercise Three-18 except that the employer is a CCPC.

Mr. John Savage has been employed for many years by a Canadian controlled private corporation. Several years ago, Mr. Savage was granted options to acquire 4,000 shares of his employer's stock for $54 per share. At this time, the shares have a fair market value of $50 per share. On July 15, 2018, Mr. Savage exercises all of these options. At this time, the fair market value of the shares is $82 per share. In February 2019, he sells all of the shares for $97 per share. Calculate the effect of the transactions that took place during 2018 and 2019 on Mr. Savage's Net Income For Tax Purposes and Taxable Income. Where relevant, identify these effects separately.

6.Employment Income Expenses

Deborah Ekert is employed as a salesperson and receives some of her compensation in the form of commissions. During the current year, her salary totaled $85,000 and her commissions totaled $8,400. Her employment related expenses during this period were as follows:

Capital Cost Allowance On Car* $ 2,850

Interest On Car Loan* 1,075

Traveling Expenses 10,300

Promotion And Advertising 5,600

Client Entertainment [(1/2)(Actual Costs Of $5,200)] 2,600

Total Available Deductions $22,425

*The car is used exclusively for employment related activities.

Ms. Ekert meets the conditions for deducting employment income expenses. Given the preceding information, determine Ms. Ekart's minimum net employment income for the current year