Assignment Problem Three - 10 (Employment Income) Ms. Alexa Braxton has worked for AAAA Retailers for a number of years. AAAA is a Canadian controlled private corporation. It operates three children's clothing stores in the Edmonton area. Her salary for the year 2020 was $120,000. AAAA withheld the following amounts from her earnings: Federal And Provincial Income Tax $20,400 El Premiums 856 CPP Contributions 2,898 Private Health Care Plan - Employee Portion 900 Union Dues 100 Other Information: 1. AAAA provided Alexa with a car to be used in her employment activities. In addition, the company paid her 2020 operating costs of $10,250. The car was purchased, used, from a car dealer for $33,600, including GST of $1,600. The car was available to Alexa throughout 2020. During this period, she drove a total of 81,000 kilometres, 6,000 of which were for personal use. 2. Alexa earned the outstanding employee award for 2020. Besides a plaque, the award came with a cheque for $2,000 payable in January 2021.3. In renegotiating her future compensation with AAAA, Alexa had asked for a $25,000 interest free loan as one of her benefits. Because employee loans were not company policy, as an alternative she was granted options to buy 1.000 of the company's shares at $35 per share. This option price was higher than the estimated fair market value of the company's shares at the time the options were granted in January 2020. On July 15, 2020. Alexa exercised these options. At this time the fair market value of the shares was $48 per share. Alexa immediately sold the shares for $40 per share. 4. One of the reasons Alexa has stayed with AAAA is the employer provided free day care facil ity located on AAAA's property. It is not open to the public. She has two sets of twins aged 2 and 4. She estimates that she would have to pay an annual minimum of $8.500 per child for day care without the facility. 5. AAAA offers all of its employees a 20 percent discount on full price merchandise in all of its stores. Alexa purchased $2,800 worth of merchandise during 2020 and received discounts total ling $560The discounted price of this merchandise was greater than its cost to the company. 0. AAAA provided Alexa with the following additional benefits: Takeout Meals Eaten While Working Infrequently Required Overtime $1,200 Private Health Care Plan Employer Portion 1,300 Personal Fitness Trainer Fees In Company Wellness Centre 700 I Alexa was required by AAAA to use a large tablet to fulfill her employment duties. She was free to choose whatever tablet she wanted to use. AAAA would reimburse her for it and it would be company property. During 2020. she purchased: - an iPad Pro for $1.775 iGST inclusive] - a wireless printer for $450 [GST inclusive] - ink cartridges and paper totaling $550 liGST inclusive] The tablet and the printer were used exclusively for company business. Required: DetermineAlexa's net employment income for the year ending December 31 . 2020. Show all calculations
