Calculate employment income

1. 15 1: 16. Question 1 - calculating employment income: 15 marks You have been provided with the following information from your taxpayer, Ms. A who is the vice- president of Loblawn Ltd. She is looking for you to address the tax implications of various amounts she received from her employer during 2020. Required: Calculate the total from employment income for 2020. Support each item included in your employment income calculation. Support each item omitted from your employment income calculation. Items from Ms. A: . MS. A received a loan (as an employee) in the amount of $10,000 on January 15, 2020, at 0.5% interest to purchase shares of the corporation. The interest was payable on each anniversary date of the loan. Ms. A paid the accrued interest on the anniversary date as required, in 2021 Use the prescribed interest rate applicable for employee loans in 2020 (from CRA site: Q1 2020 = 2%, Q2 2020 = 2%, Q3 2020 = 1%, and an estimate of Q4 2020 - 3%). 2. Ms. A is taking courses at a local college on a part-time basis. The course is for a personal interest topic. During 2020 Loblawn Ltd. paid the tuition for the courses, which amounted to $1,500. Loblawn Led. also paid $600 for a seminar / workshop so Ms. A could learn about the new accounting software Loblawn, implemented 3. In 2020 Loblawyn, paid $$399 for Ms. A to get her 2019 personal tax return completed by professionals. 4- Ms. A and her spouse were able to stay in a condo 2in Bermuda for a two-week holiday in January 2020. If the A's would have purchased the vacation on their own it would have cost them $1,000. However, Ms. A only paid $100 to Leblawn. Ms. A received a total gross salary of $120,000. Her bonus for 2020 was not received until January 15" of 2021. The following deductions were taken from ME. A's income in 2020: income taxes $45,000, Canada Pension Plan premiums (CPP) $2,898 Employment Insurance premiums $856, and $250 for Group accident disability insurance premiums. Ms. A purchased merchandise from Loblaw in 2020 during the year and saved approximately $500 as she has an employee discount of 200%. The discount is available to all employees. 7. Ms. A used a company owned vehicle costing $32.500 ( not including HST) for all of 2020. Ms A also received a gas allowance of $350 per month regardless of how many kilometers she drove. In 2020 Ms. A's total kilometers driven were 35.090, of which 20.ooo km were personal in nature. The operating costs incurred by Loblayin during 2020 was $3.500. including insurance of ssof