AP $3-11$ Commission Income and Work Space in Home

Geraldine Gilreath is an employee of a Canadion public compony with gross revenues of $$60$ mil$-$

lion. She works in their Calgary, Alberta, office and lives downtown in a high$-$rise condominium. In

addition to her $2023$ base salary of $$175,000,$ she earned commissions of $$21,460.$

Other employment$-$related information is as follows:

Under the terms of an employment contract Geraldine's employer requires her to pay all of

her employment$-$rolated expenses, as woll as provide her own office space. Geraldine has the

required Form T$2200$ signed by her employec.

Geraldine's travel expenses for $2023,$ including airine tickets, food, and lodging, total $$26,900.$

This includes $$11,300$ spent on meals while travelling for her employer. This meal total includes

client meals of $$4,300.$ All the meals are consumed while away for more than $12$ consecutive

hours from her employer's place of business.

Geraldine is a mernber of her employer's RPP$,$ and in $2023,$ $$4,100$ was withheld from her sal$-$

ary as her contribution to the plan. Her employer made a matching contribution of $$4,100.$

In $2023,$ Geraldine paid dues to her professional association of $$422.$ She is required to main$-$

tain her protessional status as a condition of her employment.

In $2023,$ Geraldine was biled a total of $$14,000$ by a local Calgary golf club of which she is a

member. Of this amount, $$2,850$ was the annual membership fee, $$7,650$ for meals and drinks

for clients, and $$3,500$ for her own meal and drink expenses.

For her employment$-$related travel, Geraldine drives an automobile that she purchased on

January $1,2023,$ for $$42,000,$ including GST$,$ In $2023,$ she drove $52,000$ kilometres, of which

$43,000$ were for employment purposes and $9,000$ for personal use. Geraldine had financed the

automobile with a loan from a local bank and, in $2023,$ she had paid interest on this car loen of

$$2,750.$

The automobile operating expenses in $2023$ were $$10,920.$ Geraldine has been advised by her

accountant that, if the automobile were used $100\%$ for employment purposes, the maximum

CCA for $2023$ would be $$16,200(30\%,(1\mathrm{.}5)($$$36,000).$

Geraldine uses $25\%$ of her personal residence as an office. In $2023,$ the expenses associated

with her home were as folows:

Interest payments on mortgage

Municipal property tax

$ $9,100$

Utilities

$3,750$

Insurance

$1,925$

Repars for Fumace, wiring, and foundation

$1,060$

Total

At the beginning of $2023,$ Geraldine's employer granted her options to buy $500$ of the com$-$

pany's shares at a price of $$1750$ per share. This was the market price of the shares at the time

the options were granted. In July $2023,$ when the shares were trading at $$19\mathrm{.}75$ per share, she

exercised all these options. In order to buy Christmas gifts for her family, she sold $100$ of these

shares in early December $2023$ for $$20\mathrm{.}60$ per share.

Her employer has a policy of giving all employees gifts to promote amployee loyalty and help

local businesses. In $2023,$ Geraldine received the following gifts:

A woekend for her and her spouse at a local hotel. The value of this gift was $$425.$

A $$400$ gift certificate at a local elactronics store. The certificate cannot be conwerted

to cash.

A besket of fruit, nuts, and cheeses, with a velue of $$225.$

In $2023,$ Geraldine purchased hockey tickets to Calgary Flames games for $$1,920.$ She used

these tickets to attend games with key personnel from important clients. She also purchased

hockey tickets to a Montreal Canadians game in Montreal for $$864.$ She used these tickets to

attend the game with a prospective client located in Montreal.

Question Required: Calculate Geraldine's minimum $2023$ employment income. Ignore GST$/$HST & PST considerations.