George, a friend of your father, asked for your help in preparing his 2020 tax return. His wife has passed away and he has three daughters ages 3, 5, and 8 at December 31, 2020. He provided the following information:

1. He was employed as a salesman for the entire year by ABC Inc., a Canadian-controlled private corporation. He received a salary of $80,000 plus commissions totalling $14,000, based on sales he generated.

2. His employer withheld the following amounts from his pay cheques: Income tax = $26,905; CPP and EI = $3,754; RPP contributions = $4,000

3. His employer match the RPP that was deducted from Georges pay cheque.

4. George received the following additional amounts in 2020:

(a) $178,600 Proceeds from the sale of 2,500 small business corporation shares of ABC Inc. in October 2020, net of $400 of selling costs. Add a sale of stocks here.

(b) Each of George's three daughters received a $500 dividend cheque. The dividends were paid on shares of IBM Ltd., a taxable Canadian public corporation. George had given the shares of IBM shares. to his daughters as birthday presents in 2019.

5. George made the following disbursements in 2020:

(a) Car expenses (including HST where applicable):

Purchase price, January 2, 2020 $32,200

Gasoline 3,700

Maintenance 1,900

Licence renewal 190

Insurance 980

Parking (all incurred in carrying out his duties of employment) 700

George is required to use his car in the performance of his duties of employment. Previously, he leased a car. In 2020, George drove his car 26,000 kilometres, of which 19,000 kilometres were driven in carrying out his duties of employment. The remainder of the kilometres driven were personal.

(b) George is provided with a nice office at ABC Inc. and spends most of his time there. However, there are times when his job takes him away from the metropolitan area in which ABC Inc. is located for two to three days at a time. The following are travel costs incurred in 2020 while away for such periods: Meals $ 2,100 Accommodation 6,000

(c) Supplies of $320 were consumed in carrying out his duties of employment.

(d) Purchased 3,000 shares of ABC Inc. from treasury for $55 each on April 15, 2020. At that time, the shares were worth $63 each. In 2018, when the shares were worth $48 each, ABC Inc. had granted George options to purchase 4,000 shares at $55 per share at any time in the nine-year period of 2018 to 2026. This was the first time George had exercised any of the options.

(e) House expenses:

Monthly mortgage payments on his home totalling $14,000 for the year ($11,000 of interest and $3,000 of principal).

Property taxes $6,000

Insurance $1,200

Repairs $3,500

Telephone: monthly charge 12 months $196

long distance calls for ABC Inc. $300

long distance calls for George's Supplies (see below) $900

long distance calls, personal $400

6. George borrowed $350,000 from ABC Inc. on June 15, 2019, to enable him to purchase a home in Waterloo, Ontario, when he moved at his employer's request, from the Quebec City office of ABC Inc. to the Waterloo office. ABC Inc. charges George interest of 2% per annum on this loan which is repayable in full the day he ceases to be employed by James. Inc. Interest of $2,500 on the house loan for the period January 1, 2020 through June 30, 2020 was paid by George on August 15, 2020. $2,500 of interest for the period July 1, 2020 through December 31, 2020 was paid February 15, 2021.

7. George has $15,000 invested in a bond which will pay interest at maturity at a rate of 7% compounded annually. The bond was issued November 1, 2019 and matures October 31, 2021. No interest was received in 2020.

8. George uses 12% of the space in his home to operate a small business, "George's Supplies", which he started a few years ago. The following information relates to the fiscal year ended December 31, 2020:

Sales $38,000

Advertising 800

Accounting and bookkeeping fees 650

Interest and bank charges 325

Salaries 22,000 The expenses are net of HST as George's Supplies is an HST registrant.

9. The following additional information was obtained by reviewing George's 2019 tax return:

o The UCC balances of the assets of George's Supplies at December 31, 2019 were as follows:

Class 8 $5,000

Class 10 7,000

o George claimed a GST rebate in 2019 of $214 relating to employment expenses he deducted.

Assume the prescribed rates of interest have been as follows:

2019, all four quarters 4%

2020, 1st quarter 4%

2020, 2nd quarter 4%

2020, 3rd quarter 5%

2020, 4th quarter 5%

Required: Determine George's Taxable Income after deducting Division C deductions for 2020. Show all your calculations. Briefly explain why you omitted any of the above information from your calculations. Assume ABC Inc. has properly completed and certified form T2200 with respect to the expenses paid by George. Ignore the effects of a leap year in your answer.