Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

clear image of this question !! Employment Income Maggie moved to Alberta to work for a ABC a public company where her job involves providing

clear image of this question !! image text in transcribed
image text in transcribed
image text in transcribed
Employment Income Maggie moved to Alberta to work for a ABC a public company where her job involves providing guiding services to visitors to Alberta provincial tourism sites. When she moved to Alberta from Toronto she sold her Toronto house in a fast sale settling for 500,000 in proceeds on a house that cost her 350,000, resulting in Maggie losing 150,000 on the sale. Some other information relating to Maggie includes 1. ABC agreed to compensate Maggie for a portion of the loss on the sale of her house and paid her in July, 2020, the month she starting work, 70,000 towards the loss on sale of the Toronto house, 2. During 2020, Maggie earned $80.000 in employment income from her previous employer in Toronto and another 140,000 in salary from her new employer, ABC. 3. The total payroll deductions for Maggie from the 2 employers combined were Income Taxes $62,500 CPP 5,658 1,925 RPP Contributions 5,985 Payment For Personal Use Of Automobile 1,850 4. ABC also contributed $3,000 towards Maggies RPP in 2020 and provided her medical coverage at a cost of 2,450. 5. Some other items paid by ABC include A Christmas gift card to local grocery store worth $750 A golf pass to local golf club worth $1,250 Life insurance premiums of $450 Discount at various parks owned by ABC, value of the discounts were $350 6. Maggie was granted options to buy 1000 of the company's shares at $39.50 per share when she joined ABC and at that time, the shares were trading at $45 per share. On August 6, 2020, the shares are trading at $58 per share and Maggie acquired 1000 shares for cash of $3,950 on that date. She sold all her shares in December, 2020 for 7,500 total proceeds. 7. ABC provides Maggie with a vehicle. It was purchased in 2020 for $80,000 and was used throughout 2020 by Maggie during her 6 months of employment with ABC. Total kilometers driven by Maggie were 58,000 and she kept logs which showed 42,000 of those were for employment purposes. ABC pays all the operating costs, totaling $18,450 on the vehicle. 8. Maggie renovated a space in her Alberta home to be used exclusively for meeting with clients and doing needed paperwork, the space represented 12% of the total living space of the home and the costs were as follows. Work space related expenditures are as follows: Maintenance $2,580 Work space related expenditures are as follows: Maintenance $2,580 Power Property Insurance (6 Months) Property Tax (6 months) Big screen TV used solely for the entertainment of clients Office Furniture 1,625 825 3,850 1,850 3,980 Maggie received an allowance of $650 per month for 6 months to cover the costs of maintaining a workspace in her home. Required: Determine Maggie's net employment income for 2020. Employment Income Maggie moved to Alberta to work for a ABC a public company where her job involves providing guiding services to visitors to Alberta provincial tourism sites. When she moved to Alberta from Toronto she sold her Toronto house in a fast sale settling for 500,000 in proceeds on a house that cost her 350,000, resulting in Maggie losing 150,000 on the sale. Some other information relating to Maggie includes 1. ABC agreed to compensate Maggie for a portion of the loss on the sale of her house and paid her in July, 2020, the month she starting work, 70,000 towards the loss on sale of the Toronto house, 2. During 2020, Maggie earned $80.000 in employment income from her previous employer in Toronto and another 140,000 in salary from her new employer, ABC. 3. The total payroll deductions for Maggie from the 2 employers combined were Income Taxes $62,500 CPP 5,658 1,925 RPP Contributions 5,985 Payment For Personal Use Of Automobile 1,850 4. ABC also contributed $3,000 towards Maggies RPP in 2020 and provided her medical coverage at a cost of 2,450. 5. Some other items paid by ABC include A Christmas gift card to local grocery store worth $750 A golf pass to local golf club worth $1,250 Life insurance premiums of $450 Discount at various parks owned by ABC, value of the discounts were $350 6. Maggie was granted options to buy 1000 of the company's shares at $39.50 per share when she joined ABC and at that time, the shares were trading at $45 per share. On August 6, 2020, the shares are trading at $58 per share and Maggie acquired 1000 shares for cash of $3,950 on that date. She sold all her shares in December, 2020 for 7,500 total proceeds. 7. ABC provides Maggie with a vehicle. It was purchased in 2020 for $80,000 and was used throughout 2020 by Maggie during her 6 months of employment with ABC. Total kilometers driven by Maggie were 58,000 and she kept logs which showed 42,000 of those were for employment purposes. ABC pays all the operating costs, totaling $18,450 on the vehicle. 8. Maggie renovated a space in her Alberta home to be used exclusively for meeting with clients and doing needed paperwork, the space represented 12% of the total living space of the home and the costs were as follows. Work space related expenditures are as follows: Maintenance $2,580 Work space related expenditures are as follows: Maintenance $2,580 Power Property Insurance (6 Months) Property Tax (6 months) Big screen TV used solely for the entertainment of clients Office Furniture 1,625 825 3,850 1,850 3,980 Maggie received an allowance of $650 per month for 6 months to cover the costs of maintaining a workspace in her home. Required: Determine Maggie's net employment income for 2020

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Islamic Accounting

Authors: Nabil Baydoun, Maliah Sulaiman, Roger J. Willett, Shahul Ibrahim

1st Edition

1119023297, 9781119023296

More Books

Students also viewed these Accounting questions