Answer the following question:

The CCA for the car is $35000 x 1.05 x 1.5 x 30% = $16,538. Explain where the 1.05 comes from in the question as well as all the numbers. The capital cost is the least of a) the FMV b) the undepreciated capital cost of the seller and c) 36000. Explain these as well.

The following information for 2023 has been presented to you by Paula Promoter, the new vicepresident of marketing for a public Canadian oil company, Overpriced Petroleum Limited. Paula, who is 52 years old and now lives in Calgary, travels extensively across Canada. Paula, whose duties involve the negotiating of contracts, began her employment with Overpriced Petroleum on January 1, 2023. /3,850 Receipts and Fringe Benefits - 2023: Salary - net of payroll deductions Director fees Receipt of an amount, not to compele, from former employer Termination payment from former employer Travel allowance (Note (1) below): Accommodation and meals @ $200 per day for 150 days Car operating cost allowance @45$ per kilometre plus $10 per day of travelling for business travel only (9,000 kilometres ) for 150 days . IncomeprotectionreceiptsreceivedfromRegalAssurance(Note(2)below)15,0005,550 Benefits paid by the corporation: \& 49,496 5,000 50,000 8,000 30,000 Registered pension plan Extended health care - Liberty Mutual Group income protection premiums - Regal Assurance (Note (2) below) Membership fee in Petroleum Club (member. . . . . . . . . . 1,050 all employees) - initiation fee - annual fee. Moving costs (Note (3) below) Group term life insurance (coverage is $300,000 ) Loans by company (Note (4) below) ... . . . . . . . . . . 160,600 $213,275 $377,275 66 (2) The company paid 50% of the premium to Regal Assurance re income protection payment. During 2023, Paula received $15,000 in periodic payments in respect of an eight-week illness. (3) Although Paula started to work for Overpriced Petroleum on January 1, 2023, her family did not move to Calgary from Toronto until February 28, 2023. The company paid for all the moving costs of $12,000, an actual loss on the sale of Paula's Toronto home of $25,000 and a disruption allowance of $5,000. (4) Paula obtained two loans from the company as part of her employment contract: (a) Loan of $150,000, dated July 1,2023 , to acquire a new home in Calgary. The loan bears annual interest at 2% and is repayable over a 25 -year period in equal annual instalments on the anniversary date of July 1 . Interest is payable on the same date. (b) Loan of $10,000, dated January 1,2023, to assist in the acquisition of a car acquired in early January 2023 for $35,000 (excluding GST; no PST in Alberta) to be used in connection with her duties of employment. The loan bears annual interest at 3%, and is repayable over the next three years in equal annual instalments. Interest is payable December 31 each year. Paula paid the interest for 2023 on time on December 31 , 2023. (NOTE: For simplicity you may assume that the prescribed interest rate is a constant 4% for all quarters.) Determine Paula Promoter's employment income for 2023 in accordance with Subdivision a o Division B. Ignore the effects of a leap year in your answer. Indicate why you have excluded any of the above amounts from your answer. Payroll deductions and selected disbursernents -2023 : Payroll deductions: Income taxes withheld Registered pension plan (defined benefit) $41,000 - current contribution Canada Pension Plan contributions ( $631 in Enhanced CPP) Employment insurance contributions Group income protection premiums (Note (2)) 4,0003,7541,0021,050$50,806 Purchased 2,000 common shares on July 1, 2023 under a stock option plan at a price of $25 per share. Fair market value of shares at the date of purchase was \$35. Fair market value of the shares was $25 per share on the date when the option was granted 50,000 Legal fees paid in connection with the collection of the $50,000 noncompetition receipt from her previous employer. 5,000 Notes and Additional Information: (1) Paula's actual travelling and car expenses, which she is required to pay according to the terms of her employment contract, are as follows: Meals $11,25023,7506,000 Travel costs (other than car see below) reimbursed by company Car expenses ( 9,000 kilometres for business purposes out of total kilometres of 16,000) : Gasoline. Maintenance Auto accident costs while on a business trip Insurance. Licence Interest paid on car loan (see Note (4), below) $1,7008001,6001,80090300$6,290