Assignment Problem Three 11 { Commission income And Worlr Space to Home} Jerald Giireath is an employee of a Canadian publicly traded company. He works in their Calgary office and lives downtown in a high-rise condominium. In addition to his 2012 base salary of $125,000, he earns commissions of $21 ,4i50. Dther employment related information is as follows: 1. Jerald's employer requires him to pay all of his employment related expenses, as well as provide his own office space. Jerald has the required Form T2200 from his employer. 2. Jerald'stravefcosts for201?, largelyairline tickets, food,and lodging, total $20,900. This includes $11,300 spent on meals while traveling for his employer. This meal total includes meals with clients of $4.300. 3.. Jerald is a member of his employer's registered pension plan. During 2013'. $4,100 was withheld from his salary as a contribution to this plan. His employer made a matching contribution of $4,100. 4. During 2012, jerald pays dues to his professional association of $422. 5. During 201?, Jerald was billed a total of $10,500 by his golf club in Calgary. Of this amount, $2,050 was the annual membership fee, with the remaining amount for meals and drinks with clients. He uses the club only when he is with clients. 0. For his employment related travel, Jerald drives a car that he purchased on January \"I, 2017 for $42,000, including CST. During 2012, he drives 52,000 kilometers, of which 43,000 are employment related. Jerald had financed the car with a loan from a local bank and, during 201 i', he had paid interestol $2,250. The costs of operating the car during 201:? were $10,920. He has been advised by his accountant that, if the car were used 100 percent for employment related activities, the maximum cca for 201 i" would be $4,500. 2. Jerald uses 25 percentof his personal residence as an office. During 201 F, the costs asso- clated with his home were as follows: interest Payments Un Mortgage $ 9,100 Property Taxes 3,250 Utilities 1,925 Insurance 1,0150 Furnace, Wiring And Foundation Repairs 4,200 Total $20=035 0. Fit the beginning of 201?, lerald's employer grants him options to buy 500 of the Company's shares at a price of 51 2 .50 per share. This was the market price of the sharesat the time the options were granted. During July, 201?, when the shares are trading at $19.25 per share, he exercises all thhese options. In order to buy Christmas gifts for his family, he sells 100 of these shares in early December, 201?. The proceeds are $20.50 per share
