A graduated from the University in early 2021 at the age of 30. He immediately applied for a number of jobs and accepted a position as a financial planner in the Ottawa office of Otterbrook Associates Ltd. Otterbrook is a large Canadian controlled private corporation (CCPC) employing more than 200 people.

required: Employment income for 2021 taxation year is?

Prior to accepting employment with Otterbrook, Malachi had lived in Red Deer, Alberta. Once he had signed the contract with Otterbrook, plans were made to sell the house he owned in Red Deer. Unfortunately, the home remained unsold when he moved on March 8, 2021. It was sold in late May 2021 for $121,000. He had purchased the home several years before for $145,000. He arrived in Ottawa on March 16 and moved into an apartment he had rented on a monthly basis until he could arrange to purchase a home. Rent payments were required from April 1. Malachi began work on April 1, 2021, and eagerly awaited the arrival of his long-time girlfriend, Jeannine Moormeier, from Alberta. Shortly after her arrival in Ottawa, Malachi and Jeannine were married on November 29, 2021. Malachi had purchased a house just outside of Ottawa for $234,000 that they moved into on December 1, 2021. Malachi's new job requires him to meet with existing and prospective clients outside of regular office hours and, at times, on weekends. As a result, Otterbrook has agreed to sign form T2200 stating Malachi is required to pay for certain employment expenses without reimbursement and use a portion of his home for work. He has set aside a small room in his rented apartment that is used exclusively to meet with clientele. Malachi is also provided with an automobile to use in his employment duties. Malachi is compensated by salary with a bonus and stock option arrangement. The bonus is based on overall company profits. The stock option is available to all employees depending upon level of service and overall job evaluation. Given Malachi's high grades at the University of Alberta, Otterbrook offered him $10,000 to convince him to sign a five year employment contract. After he accepted, he received the cheque in February 2021. During the period April 1, 2021, through December 31, 2021, he earned salary of $64,200. Of these earnings, $63,050 was received in 2021 with the remainder received only in 2022. The company withheld the following amounts from his salary. $ Income Taxes $ 11,800 CPP 3,177 EI 850 RPP Contributions 1,100 Payment to Company For Personal use of Automobile 640 On December 16, 2021, a bonus of $7,050 was accrued for Malachi. Malachi received $2,500 of this bonus on December 21, 2021, with the remainder being paid on February 17, 2022. A few months into the new job Malachi became quite stressed. His employer suggested he take advantage of the company's employee assistance program. He went to four counselling appointments in October and November and felt much better. Otterbrook paid $500 for Malachi's counseling sessions. Otterbrook provides group medical coverage to all of its employees. The premiums paid by Otterbrook on Malachi's behalf cost $440. Otterbrook contributed $1,400 on Malachi's behalf to the company's RPP. Malachi is a Certified Financial Planner and paid $745 in professional dues in 2021. Otterbrook policy is to reimburse 80% of such annual professional dues. Otterbrook Associates reimbursed Malachi $596 in November 2021. When Malachi was married in November, he received non-cash wedding gifts valued at $750. Half of the amount was contributed by his employer and the balance was from other employees. Otterbrook Associates discovered years ago that many existing clients frequent certain recreational and sporting clubs. To encourage contacts with potential clients, employees have their choice among five such clubs. Since Malachi enjoys squash, he chose a free membership at a local squash club. The annual membership is $955. Otterbrook Associates reimbursed Malachi for 80% of the $24,000 ($145,000 - $121,000) loss that he experienced on the sale of his Red Deer home. Malachi had $36,000 for a down payment on his new Ottawa home. Since he had no previous work experience, the banks were reluctant to provide him a mortgage at favourable terms. His employer stepped in and agreed to give him an interest free housing loan of $200,000 beginning on December 1, 2021. Malachi agreed to reduce his salary slightly with respect to this benefit. The loan requires annual payments of $7,600 due at the end of November beginning in 2022. The loan is required to be paid if Malachi dies, sells the home, or terminates his employment. Assume that the prescribed interest rates for such benefits are 2% in each of the first two quarters of 2021 and 1% in the third and fourth quarters. Otterbrook instituted a stock option plan for its employees in 2020. The plan eligibility requires three months of service. Employees are permitted to acquire a limited number of option shares at 20% below their fair market value on either May 1 or November 1 each year. The company hires valuators to determine the fair market value on those dates. Malachi acquires 200 shares on November 1, 2021, for $12,400. Low on cash and wanting to buy Jeannine a nice wedding ring, he is forced to sell 80 of the shares. He sells them on December 16, 2021, for $8,940. Otterbrook has an arrangement with a local dealership to lease a minimum number of new automobiles each year at favourable rates. Malachi receives his leased automobile on May 1, 2021. The leased automobile's odometer reads 165 kilometres when Malachi receives it. The odometer reads 19,390 kilometres on December 31, 2021. Malachi estimates that he drove 5,227 kilometres for personal use, including drives to and from home to the office, and 13,998 for employment purposes. Otterbrook Associates pays monthly lease payments (including HST) of $440. The cost of gas, oil, insurance, repairs and maintenance, and other charges total $2,155 for 2021. Otterbrook Associates requires each employee provided with an automobile to pay $80 each month for the personal use of the automobile, which is withheld directly from their pay. Malachi prepared a separate room in his apartment to be used exclusively for a home office. He used the office space between June 1 and November 30, 2021. A home office was not ready in his newly purchased home until February 2022. The apartment office space is exactly 100 square feet. The total apartment space is 1,166 square feet. Home office-related costs are as follows. $ 71 Monthly Rent $ 940 Monthly Phone Line Charge (April to November) 38 Employment-Related Long Distance Calls (June to November) Total Electricity Charge (March 16 to November 30) 910 Property Insurance (March 16 to November 30) 195 Paint For Apartment 228 Office Furniture 1,370 Computer Purchase 1,743 Stationery And Office Supplies Purchased 4. Malachi received an allowance of $350 per month for six months to cover the costs of maintaining an office in his home. 136 Prior to accepting employment with Otterbrook, Malachi had lived in Red Deer, Alberta. Once he had signed the contract with Otterbrook, plans were made to sell the house he owned in Red Deer. Unfortunately, the home remained unsold when he moved on March 8, 2021. It was sold in late May 2021 for $121,000. He had purchased the home several years before for $145,000. He arrived in Ottawa on March 16 and moved into an apartment he had rented on a monthly basis until he could arrange to purchase a home. Rent payments were required from April 1. Malachi began work on April 1, 2021, and eagerly awaited the arrival of his long-time girlfriend, Jeannine Moormeier, from Alberta. Shortly after her arrival in Ottawa, Malachi and Jeannine were married on November 29, 2021. Malachi had purchased a house just outside of Ottawa for $234,000 that they moved into on December 1, 2021. Malachi's new job requires him to meet with existing and prospective clients outside of regular office hours and, at times, on weekends. As a result, Otterbrook has agreed to sign form T2200 stating Malachi is required to pay for certain employment expenses without reimbursement and use a portion of his home for work. He has set aside a small room in his rented apartment that is used exclusively to meet with clientele. Malachi is also provided with an automobile to use in his employment duties. Malachi is compensated by salary with a bonus and stock option arrangement. The bonus is based on overall company profits. The stock option is available to all employees depending upon level of service and overall job evaluation. Given Malachi's high grades at the University of Alberta, Otterbrook offered him $10,000 to convince him to sign a five year employment contract. After he accepted, he received the cheque in February 2021. During the period April 1, 2021, through December 31, 2021, he earned salary of $64,200. Of these earnings, $63,050 was received in 2021 with the remainder received only in 2022. The company withheld the following amounts from his salary. $ Income Taxes $ 11,800 CPP 3,177 EI 850 RPP Contributions 1,100 Payment to Company For Personal use of Automobile 640 On December 16, 2021, a bonus of $7,050 was accrued for Malachi. Malachi received $2,500 of this bonus on December 21, 2021, with the remainder being paid on February 17, 2022. A few months into the new job Malachi became quite stressed. His employer suggested he take advantage of the company's employee assistance program. He went to four counselling appointments in October and November and felt much better. Otterbrook paid $500 for Malachi's counseling sessions. Otterbrook provides group medical coverage to all of its employees. The premiums paid by Otterbrook on Malachi's behalf cost $440. Otterbrook contributed $1,400 on Malachi's behalf to the company's RPP. Malachi is a Certified Financial Planner and paid $745 in professional dues in 2021. Otterbrook policy is to reimburse 80% of such annual professional dues. Otterbrook Associates reimbursed Malachi $596 in November 2021. When Malachi was married in November, he received non-cash wedding gifts valued at $750. Half of the amount was contributed by his employer and the balance was from other employees. Otterbrook Associates discovered years ago that many existing clients frequent certain recreational and sporting clubs. To encourage contacts with potential clients, employees have their choice among five such clubs. Since Malachi enjoys squash, he chose a free membership at a local squash club. The annual membership is $955. Otterbrook Associates reimbursed Malachi for 80% of the $24,000 ($145,000 - $121,000) loss that he experienced on the sale of his Red Deer home. Malachi had $36,000 for a down payment on his new Ottawa home. Since he had no previous work experience, the banks were reluctant to provide him a mortgage at favourable terms. His employer stepped in and agreed to give him an interest free housing loan of $200,000 beginning on December 1, 2021. Malachi agreed to reduce his salary slightly with respect to this benefit. The loan requires annual payments of $7,600 due at the end of November beginning in 2022. The loan is required to be paid if Malachi dies, sells the home, or terminates his employment. Assume that the prescribed interest rates for such benefits are 2% in each of the first two quarters of 2021 and 1% in the third and fourth quarters. Otterbrook instituted a stock option plan for its employees in 2020. The plan eligibility requires three months of service. Employees are permitted to acquire a limited number of option shares at 20% below their fair market value on either May 1 or November 1 each year. The company hires valuators to determine the fair market value on those dates. Malachi acquires 200 shares on November 1, 2021, for $12,400. Low on cash and wanting to buy Jeannine a nice wedding ring, he is forced to sell 80 of the shares. He sells them on December 16, 2021, for $8,940. Otterbrook has an arrangement with a local dealership to lease a minimum number of new automobiles each year at favourable rates. Malachi receives his leased automobile on May 1, 2021. The leased automobile's odometer reads 165 kilometres when Malachi receives it. The odometer reads 19,390 kilometres on December 31, 2021. Malachi estimates that he drove 5,227 kilometres for personal use, including drives to and from home to the office, and 13,998 for employment purposes. Otterbrook Associates pays monthly lease payments (including HST) of $440. The cost of gas, oil, insurance, repairs and maintenance, and other charges total $2,155 for 2021. Otterbrook Associates requires each employee provided with an automobile to pay $80 each month for the personal use of the automobile, which is withheld directly from their pay. Malachi prepared a separate room in his apartment to be used exclusively for a home office. He used the office space between June 1 and November 30, 2021. A home office was not ready in his newly purchased home until February 2022. The apartment office space is exactly 100 square feet. The total apartment space is 1,166 square feet. Home office-related costs are as follows. $ 71 Monthly Rent $ 940 Monthly Phone Line Charge (April to November) 38 Employment-Related Long Distance Calls (June to November) Total Electricity Charge (March 16 to November 30) 910 Property Insurance (March 16 to November 30) 195 Paint For Apartment 228 Office Furniture 1,370 Computer Purchase 1,743 Stationery And Office Supplies Purchased 4. Malachi received an allowance of $350 per month for six months to cover the costs of maintaining an office in his home. 136