Determine Amaris net employment income for 2022.

Step by Step how you came up with the solution.

Ms. Amari is a Certified Financial Planner (CFP) with many years of successful experience. She has decided to take a position with DXV. LTD. a Canadian controlled private corporation located in London, Ontario. After selling her house in Toronto, she commenced working for DXV. LTD. on May 1, 2022.

Other Information:

1. Because of her strong professional reputation, DXV. LTD. paid her a signing bonus of $12,000. The signing bonus was paid on June 1, 2022.

2. During the period May 1, 2022 through December 31, 2022, Amari earned salary of $130,000. The Company withheld the following amounts from her salary: Income Taxes $18,650 CPP 2,876 EI 890 RPP Contributions 3,700 Charitable Donations 200

3. Amari. LTD. contributed $3,500 on Amaris behalf to the Companys RPP.

4. DXV. LTD. provides group medical coverage to all of its employees. The private health plan premiums paid by DXV. LTD. on Amari's behalf cost $556 for the year.

5. During the year, Amari received two non-cash gifts, a birthday gift worth $425 and a Christmas gift worth $300.

6. Because of the need to invest some of her additional income, DXV. LTD. provided Amari with financial counselling services. The value of these services was $1,200.

7. In order to assist her to move to London, DXV LTD. agreed to compensate her for one-half of the $100,000 loss on the sale of her Toronto home. The $50,000 payment was made on December 1, 2022.

8. On December 12, 2022, a bonus of $10,600 was accrued for Amari. Amari received $5,300 of this bonus on December 29, 2022, with the remainder being paid on January 17, 2023.

9. In order to help Amari with financing her new London residence, DXV. LTD. provided her with a $220,000 interest-free housing loan. The funds are provided to Amari on November 1, 2022. Assume that the prescribed rate for all of 2022 is 2 percent.

10. DXV. LTD. Offered Amari a stock option plan on January 1, 2021 to purchase 200 shares at $30 per share. The market value of shares on grant date (January 1, 2021) was $31 per share. Amari acquires 200 shares on January 15, 2022 when the market value was $34 per share. On December 15, 2022 she sells 100 of these shares for $35 per share.

11. Amari paid $1,600 in CFP dues in 2022 DXV. LTD.s policy is to reimburse 50 percent of such professional dues. Amari. LTD. reimbursed her $800 in December, 2022.

12. Amari. LTD. provides its professional employees with a membership in the London Ballroom Club. They believe this is a useful venue for entertaining clients of the Company. The cost of this annual membership was $1,300.

13. DXV. LTD. provides Amari with a vehicle that was purchased in 2022 for $40,200, including an HST of $4,625. The vehicle was used by Amari for all months during the period May 1, 2022 through December 31, 2022. During this period, she drove the vehicle a total of 47,000 kilometres, of which 35,000 were related to her employment duties. DXV. LTD. pays all operating and maintenance costs, a total of $8,900 during the period that Amari used the car.

14. Amaris new job requires her to meet with clients outside of regular office hours throughout the week. DXV. LTD. will sign form T2200 stating that she is required to pay for certain employment expenses without reimbursement and use a portion of her home for work. Amari has set aside a separate room in her apartment to be used exclusively to meet with clients.

She used this office space between May 1 and November 30, 2022. This home office occupied 150 square feet of the 1,250 square feet available in her apartment. The home office in the residence she moved into on December 1, 2022, will not be available for use until 2021. DXV. LTD. has agreed to let Amari use head office space as needed during December. Home office-related costs are as follows:

Monthly Rent $2,200

Office Furniture 3,400

Computer Purchase 896

Stationery And Office Supplies Purchased 147

Monthly Phone Line Charge (For 7 Months) 210

Employment Related Long Distance Calls (For 7 Months) 110

Electricity Charge (For 7 Months) 350

Paint For Apartment 165

Property Insurance (7 Months) 175

15. Amari received an allowance of $325 per month for 7 months to cover the costs of maintaining a workspace in her home.