9. METAL provided Lee with a car, which they bought January 3, 2018. Capital cost of the car Including applicable taxes $38,529 Capital cost allowance claimed by company in 2018 5,085 Operating costs pald by the company 4,300 Kilometres driven in 2019 as per Lee's log: Business use 7,600 Personal use 2,400 Amount paid by Lee to METAL for personal use at $0.20 per kilometre (2,400 km x $0.20) Y480 10. In May 2019, Lee was in a production accident and was unable to work for six weeks. During this period, she received disability payments totalling $11,538 from Star Life and Disability Assurance Co. All disability insurance premiums were paid by Lee through payroll deduction. 11. Lee had a rental property purchased in 2017 at a cost of $200,000. The UCC balance in 2019 was $184,000. During the current year Lee received $19,000 rent and incurred $2200 expenses excluding . 12. METAL paid Lee an allowance of $18,000 to cover the cost of moving from Gander, Newfoundland, to Dundas, Ontario, plus a $35,000 payment in respect of an actual loss on the sale of her former home. 13. METAL made available in-house staff to provide Lee with tax planning advice valued at $800, including applicable taxes. 14. During the holiday season in 2019, METAL gave all of its employees wrist watches that cost the company $150, including applicable taxes. The company claimed these costs as a business expense in computing corporate taxable income. 15. The company installed recreational facilities at its head office. All employees are permitted to use these facilities free of charge. The equivalent value for similar facilities at a private club would be $1,100 per year, including applicable taxes. Required: Calculate Lee's employment income inclusions for 2019 in accordance with the provisions of the Act and the CRA's administrative position as reflected in IT-470R and related announcements. Focu MacBook Air Question 1: (25 Marts) Lee, a senior production manager and corporate director of METAL Corporation, of Dundas, Ontario, received the following amounts and benefits from her employer during 2019. The corporation is Canadian-controlled private corporation, having no shares listed on a stock exchange. 1. Salary, gross $140,000 Payroll deductions: Income taxes $38,000 Canada Pension Plan premium 2,749 Employment Insurance premium 860 Group accident disability insurance premiums 600 (42209) Net pay $ 97,791 2. Director's fees of $3,400 received from METAL 3. Lee exercised a stock option to buy 1,000 shares of METAL at $25 per share. The fair market values at the date of grant (August 2018) were $24 per share and at purchase (July 2019) were $27 per share. Lee needs some cash, therefore, on December 31, 2019, he sold these 1,000 shares at fair market value of $30 per share. 4. A cash birthday gift of $450 was paid to Lee. METAL corporate policy was to deduct such gifts. 5. Lee and her life partner were provided with the company's condo in Colorado for two weeks during the winter ski season. They had to pay METAL $1,500 for accommodations that would otherwise have cost them $3,400. Lee was not involved in any business activities during this trip. 6. Lee's life partner accompanied her on a business trip to Cuba that was paid for by her employer. The main purpose of the trip was for Lee to work with a customer. Her life partner performed no business function during the trip. They did not extend their trip to include a vacation. Lee's expenditures of $5,000, including applicable taxes, were paid by METAL and were reasonable in relation to the business function. The portion of the travelling expenses related to Lee's life partner were also paid by METAL and amounted to $1,000, including applicable taxes. 7. During 2019, METAL paid for Lee to have her income 2018 tax return prepared by the company's accountants at a cost of $375, including HST. 8. During the year, METAL provided its employees with free meals in the company cafeteria. Lee's meals cost the company $1,100 to prepare and serve. The meals would have cost Lee $1,900 in a similar commercial restaurant. - 9. METAL provided Lee with a car, which they bought January 3, 2018. Capital cost of the car Including applicable taxes $38,529 Capital cost allowance claimed by company in 2018 5,085 Operating costs pald by the company 4,300 Kilometres driven in 2019 as per Lee's log: Business use 7,600 Personal use 2,400 Amount paid by Lee to METAL for personal use at $0.20 per kilometre (2,400 km x $0.20) Y480 10. In May 2019, Lee was in a production accident and was unable to work for six weeks. During this period, she received disability payments totalling $11,538 from Star Life and Disability Assurance Co. All disability insurance premiums were paid by Lee through payroll deduction. 11. Lee had a rental property purchased in 2017 at a cost of $200,000. The UCC balance in 2019 was $184,000. During the current year Lee received $19,000 rent and incurred $2200 expenses excluding . 12. METAL paid Lee an allowance of $18,000 to cover the cost of moving from Gander, Newfoundland, to Dundas, Ontario, plus a $35,000 payment in respect of an actual loss on the sale of her former home. 13. METAL made available in-house staff to provide Lee with tax planning advice valued at $800, including applicable taxes. 14. During the holiday season in 2019, METAL gave all of its employees wrist watches that cost the company $150, including applicable taxes. The company claimed these costs as a business expense in computing corporate taxable income. 15. The company installed recreational facilities at its head office. All employees are permitted to use these facilities free of charge. The equivalent value for similar facilities at a private club would be $1,100 per year, including applicable taxes. Required: Calculate Lee's employment income inclusions for 2019 in accordance with the provisions of the Act and the CRA's administrative position as reflected in IT-470R and related announcements. Focu MacBook Air Question 1: (25 Marts) Lee, a senior production manager and corporate director of METAL Corporation, of Dundas, Ontario, received the following amounts and benefits from her employer during 2019. The corporation is Canadian-controlled private corporation, having no shares listed on a stock exchange. 1. Salary, gross $140,000 Payroll deductions: Income taxes $38,000 Canada Pension Plan premium 2,749 Employment Insurance premium 860 Group accident disability insurance premiums 600 (42209) Net pay $ 97,791 2. Director's fees of $3,400 received from METAL 3. Lee exercised a stock option to buy 1,000 shares of METAL at $25 per share. The fair market values at the date of grant (August 2018) were $24 per share and at purchase (July 2019) were $27 per share. Lee needs some cash, therefore, on December 31, 2019, he sold these 1,000 shares at fair market value of $30 per share. 4. A cash birthday gift of $450 was paid to Lee. METAL corporate policy was to deduct such gifts. 5. Lee and her life partner were provided with the company's condo in Colorado for two weeks during the winter ski season. They had to pay METAL $1,500 for accommodations that would otherwise have cost them $3,400. Lee was not involved in any business activities during this trip. 6. Lee's life partner accompanied her on a business trip to Cuba that was paid for by her employer. The main purpose of the trip was for Lee to work with a customer. Her life partner performed no business function during the trip. They did not extend their trip to include a vacation. Lee's expenditures of $5,000, including applicable taxes, were paid by METAL and were reasonable in relation to the business function. The portion of the travelling expenses related to Lee's life partner were also paid by METAL and amounted to $1,000, including applicable taxes. 7. During 2019, METAL paid for Lee to have her income 2018 tax return prepared by the company's accountants at a cost of $375, including HST. 8. During the year, METAL provided its employees with free meals in the company cafeteria. Lee's meals cost the company $1,100 to prepare and serve. The meals would have cost Lee $1,900 in a similar commercial restaurant