During 2020, you receive from your employer:

a $400 gift certificate.

a $600 chair for outstanding customer service.

4 coffee mugs that cost the employer $20.

an Easter basket of gourmet treats valued at $245.

a cash award of $300 in recognition of 10 years of service with the employer.

What is the amount that will be included in your 2020 Net Income (Division B)?

A) $800.

B) $1,000.

C) $1,300.

D) $700.

Part 1 (ITA 3) Division B Net Income to Division C Taxable income to Taxes Payable for Individuals + Bin #1 - Net Employment - losses carry forward 20 years and carry back 3 years (carrying baskets) ITA 3(a) + Bin # 2 - Net Business & Property - losses carry forward 20 years and carry back 3 years (carrying baskets) + Bin #4 - Other Income ITA 3 (b) + Bin #3 - Net Capital - losses carry forward for infinity and carry back 3 years (carrying basket) ITA 3 (C) - Bin #5 - Other Deductions = Sources of Income ITA 3 (d) Losses in current year from Bins 1, 2,4 = Division B Net Income ITA 110 Equivalent to Capital Gains Deduction for Employee Stock Options Payments included to calculation Division B but not included for Division C (e.g. social assistance) - Losses from other years (carrying baskets Bin #1 & 2) Losses from other years (carrying basket Bin #3 limited to Net Capital Income included in ITA 3 (b)) ITA 111 = Division C Taxable income X Applicable Tax Rates ITA 118 Tax Credits = Division E Taxes Payable for Individuals