Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need an answer pls ASAP thanks ... must answer from requirement 1-5 SSS Problem 3-5 (Employment Income) Mrs. Vera Smiles is a sales representative

image text in transcribedI need an answer pls ASAP thanks ... must answer from requirement 1-5

SSS Problem 3-5 (Employment Income) Mrs. Vera Smiles is a sales representative for a Canadian controlled private corporation (CCPC) that manufactures office furniture. Her gross salary for the 2021 taxation year is $53,000 and, in addition, she earned commissions of $34,500. For the 2021 taxation year, Mrs. Smiles' employer withheld the following amounts from her income: Federal & Provincial Income Taxes $22,400 Registered Pension Plan (RPP) Contributions 3,200 Contributions to Group Disability Plan 212 El Premiums CPP Contributions 3,166 Mrs. Smiles' employer made a $3,200 matching contribution to her RPP and a $236 matching contribution to her group disability insurance. 890 Other Information: 1. In 2021, Mrs. Smiles is provided with an automobile that has been leased by her employer. The lease payments are $1,220 per month, an amount that includes a $127 per month payment for insurance. The car is available to her for 10 months of the year. In 2021, she drives the company car a total of 67,000 kilometres. Of this total, 63,000 kilometres were for employment purposes and only 4,000 for personal use. In 2021 she reimbursed her employer $1,400 for her personal use of the automobile. 2. In 2021, Mrs. Smiles was hospitalized for a month. The disability plan that provides periodic benefits to compensate for lost employment income paid her benefits of $2,650 during this period. Mrs. Smiles began making contributions to this plan in 2020 and paid $260 in that year. 3. On July 1, 2021, Mrs. Smiles received a $50,000 loan from her employer. The loan requires annual interest payments at a rate of 1% and Mrs. Smiles pays the interest for 2021 on January 18, 2022. Assume that at the time the loan was granted and for the remainder of the year, the prescribed rate was 2%. The loan is still outstanding at the end of the year. 4. Mrs. Smiles was given options to buy 200 shares of her employer's stock at a price of $32 per share three years ago. At the time the options were granted, the shares had a FMV of $30 per share. On June 1, 2021, Mrs. Smiles exercises the options. At the time of exercise, the shares had a FMV of $45 per share. She does not plan to sell the shares for at least two years. 5. During the year, Mrs. Smiles traveled extensively on business. She had travel expenses of $3,365 in air fares, $4,880 in hotels, and $2,450 in meals. She also spent $2,720 to entertain clients. Her employer reimbursed her fully for these costs on presentation of the receipts. Required: Calculate Mrs. Smiles' minimum 2021 employment income. Provide reasons for omitting items that you have not included in your calculations. Ignore all GST/HST & PST considerations

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

Effective Internal Auditing

Authors: Manuel E. Peña-Rodríguez

1st Edition

1736742922, 978-1736742921

More Books

Students also viewed these Accounting questions

Question

Find All Symmetric Pairs in an Array in python

Answered: 1 week ago

Question

What is job enlargement ?

Answered: 1 week ago

Question

what is the most common cause of preterm birth in twin pregnancies?

Answered: 1 week ago

Question

Which diagnostic test is most commonly used to confirm PROM?

Answered: 1 week ago

Question

What is the hallmark clinical feature of a molar pregnancy?

Answered: 1 week ago