1.M is employed in the soft drink industry. In addition to his salary, he enjoyed the following benefits paid for by his employer in the current year: Contribution to company pension plan $14,000; Premium of $420 paid for group term life insurance coverage of $100,000; Annual public transport bus pass $500. What amount, with respect to the benefits, is included in Ms employment income for tax purposes?

2. O is employed as a salesperson and spends most of the time working in his home office. His office occupies 10% of the total space in his home. He paid the following expenses in the current year: Utilities $5,200; House insurance $1,400; Mortgage interest $10,800; Property taxes $6,700; Repairs & maintenance $2,300. What is the maximum deduction from employment income for tax purposes available to O in the current year, assuming he received $60,000 of commission income?

3. An employer paid the following amounts on behalf of an employee: preparation of personal tax return, to minimize stress of $300; laptop computer to use at work and at home of $1,500; day care provided at a government supported facility of $2,000; and low-rent housing of $5,000. What would be the total taxable benefit to be included in employment income?

a.$7,300

b.$8,800

c.$7,000

d.5,300

4. G is employed by a Canadian-controlled private corporation. In year 1, G was granted a stock option to acquire 1,000 shares from the treasury of his employers corporation for $8 a share. At the time of receiving the option, the shares were valued at $10 per share. In year 3, G exercised his option and purchased 1,000 shares for $8,000. At the purchase date in year 3, the shares were valued at $15 per share. In year 6, G sold 1,000 shares for $20 per share. What amount is included in Gs employment income for tax purposes in year 6?

5. An employee received the following: In 2020, a monthly salary; in 2021, a bonus based on performance in 2020, director's fees, and in 2020, a commission based on sales made in 2019. Which of the above amounts would not be included in the employee's 2020 employment income?

a. The commission received in 2020 as it was based on 2019 sales. The commission should have been included in 2019 employment income.

b. The bonus received in 2021 even though it was based on performance in 2020.

c. The director's fee as directors would not be considered as employees of the payer. The fees would be included in income in 2020 but not as employment income.

d. The monthly salary.