Homework One 1. Jack is an employee of ABC. a lCanadiancontrolled private corporation (CCPC). The following was provided to you by Jack regarding all his financial and nonfinancial transaction during 2021. He received the fotlowing during 2021: Gross salary $60.00!] Payroil deductions: Income taxes $12.000 CPP premium 2.30? El premium B40 RPP employee contributions 4.200 Union Dues 375 Group accident disability insurance 200 Use of employer car 1.900 {21,822} Net pay W 2. Director's fees of $2,400 received from being on the board of XYZ, a public corporation controlled by ABC. 3. For his good performance he awarded $201,000 bonus of total bonus he receives $12,000 in Dec 25, 2021 and the reminder to be paid next year. 4. Abirthday gift of new iphone was given to Jack for his personal use. ABC corporate policy was to deduct such gifts, the cost of the phone was $750 including taxes 5. Jack and his spouse rented the company's condo in Colorado for two weeks during the winter ski season. 'l'hey had to pay ABC $500 per week for accommodations that would otherwise have cost them $1,400 for the entire stay. Jack was not involved in any business activities during this trip. 5. Jack's spouse accompanied him on a business trip to Cuba that was paid for by his emponer. The main purpose of the trip was for Jack to work with a customer. His spouse performed no business funcan during the trip. They did not extend their trip to include a vacation. Jack's expenditures of $5.000 were paid by ABC and were reasonable in relation to the business function. The portion of the travelling expenses related to Jack's spouse were also paid by ABC and amounted to $1,000. 3?. During 2021, EEE paid for JacE to 552 E income 2021 tax rennn prep-Era by ilie company's accountants at a cost of $325. ABC also made available inhouse staff to provide lack with retirement planning advice valued at $800. 3. During the year, ABC provided its employees with free meals in the company cafeteria. Jack's meals cost the company $1,100 to prepare and serve. The meals would have cost Jack $1,900 in a similar commercial restaurant. 9. ABC provided Jack with a car for the entire year, which dtey bought in 2018. Capital cost of the car $33,529 Capital cost allowance claimed by company 5.085 Operating costs paid by the company 4.300 Kilometres driven in 2021 as per Jack's log: Business use 12.400 Personal use 1500 Amount paid by Jack to ABC for personal use at $0.25 per kilometre (7.500 km x $0.25) 1,900 10. In May 2021, Jack was in a production accident and was unable to work for four weeks. During this period, he received disability payments totalling $11,533 from die insurance company. Disability insurance premiums shared equally by the employer and employee. The plan was started in 2013 and the annual premiums have been not changed. 11. Jack's home required some major renovations as a result of a fire. While die property was not inhabitable, ABC provided Jack with a companyowned aparttnent. Jack stayed in the apartment for two months, paying $300 per month, while rent in d'tis building for a similar uttit was $1,000 per mondt. 12. ABC provides Jack with a one year membership in Province of Alberta golf club. The cost of this annual membership was $1,300 paid by ACE. 13. Elm Feb 15, 2021, Jack receives options to buy 200 shares of ABC. Common shares at price (exercise price) $23. The market price was $21. Jack exercise the option on August 12, 2021 when the price $23 per share. Jack plan to hold those shares for few years 14. [In Jan 1, 2021 ABC provide Jack with a $50,000 loan at annual interest rate of 5.5%. The prescribed rate was 5% for all quarters in 2021. 15. The company installed recreational facilities at its head office. All employees are permitted to use these facilities free of charge. The equivalent value for similar facilities at a private club would be $1,100 per year. 15. Jade paid $1,300 in annual dues to a professional accounting association. 1?. Other disbursements made by lack includes die following: - Advanced accounting course tuition fees $1,200 1 Music history ooume tuition fees [U of A) 50!] 1 Payments of premiums on life insurance 2,400 required by his Bank [to cover his personal mortgage} Reunited; Calculate Jack's net employmml income for 2021. In detailed notes. provide reasons for an}:r items not include in your calculations. Also, reason wim calculadon {if needed) for amounts included in your calculations. (Numbers without support note explanation will be granted \"D\" even if your nal answeris correct} You can refer to the format posted on Black board Note: For each calculation you MUST provide the ITA section, Subsection. Paragraph. sub paragraoh. close and subclose if any