ACCOUNTING Assignment Winter 2021 Mack has been employed since 2016 by PUBLIC CO., a Canadian public corporation incorporated in Ontario in 2014. PUBLIC sells office cleaning supplies. Mack has asked you, Phil the trusted tax guy at PUBLIC for your help in the preparation of his 2020 personal tax return. He has provided you with the following information about his receipts and selected disbursements. 1. Salary, bonus Deductions: Income taxes Canada Pension Plan premium Utilities (300/3,000 * $1,200) Employment Insurance premium Meal costs during trips to plant Cell phone purchased $116,000 $38,000 2,898 120 860 565 600 Group accident disability insurance premiums 800 (43,843) Net Income $ 72.157 2. Included in the above salary, bonus amount is a $5,000 bonus that was awarded to him on December 31st 2020 and paid on the next payroll run date of January 14th 2021. 3. Two years ago, Public Co. granted Mack an option to purchase 2,000 of its common shares at $32 per share. At the time the option was granted, PUBLIC's shares were trading at the value of $30 per share. On January 31, 2020, Mack exercised the options and purchased 2,000 shares of Public Co. (trading value at purchase date was $44 per share). On November 30, 2020, he sold all of the shares at $48 each. 4. A cash birthday gift of $250 was paid to Mack. Public Co. corporate policy was to deduct such gifts to determine corporate income. 5. PUBLIC Co requires that Mack work out of his home from time to time. They have supplied him with a computer and printer for this purpose; however, he must pay for his own supplies. His house is 3,000 square feet and his workstation is in a room of about 300 square feet. He also uses the room as a den and guest room. Utility costs for his home for 2020 amounted to $1,200. Mack has not kept a log of the dates when he worked from home. 6. Mack travels out of town from time to time to PUBLIC's manufacturing plant. Public Co. reimburses him for all travel costs, except meal costs. The plant is only 90 km from the head office, and he always returns home the same day after working a normal eight-hour day.