IL MIL. 15 a Canadian public company. At the time the options were granted the Company's shares were trading at $34.00 per share. The options are exercised on February 28, 2018. When the shares are sold, the proceeds of disposition are $31.00 per share. Assignment Problem Three - 10 (Employment Income) Ms. Alexa Braxton has worked for AAAA Retailers for a number of years. AAAA is a Canadian controlled private corporation. It operates three children's clothing stores in the Edmonton area. Her salary for the year 2019 was $120,000. AAAA withheld the following amounts from her earnings: Federal And Provincial Income Tax $20,400 El Premiums 860 CPP Contributions 2,749 Private Health Care Plan - Employee Portion 900 Union Dues 100 Other Information: 1. AAAA provided Alexa with a car to be used in her employment activities. In addition, the Company paid her 2019 operating costs of $10,250. The car was purchased, used, from a car dealer for $33,600, including GST of $1,600. The car was available to Alexa throughout 2019. During this period, she drove a total of 81,000 kilometers, 6,000 of which were for personal use. 2. Alexa earned the outstanding employee award for 2019. Besides a plaque, the award came with a cheque for $2,000 payable in January, 2020. 3. In renegotiating her future compensation with AAAA, Alexa had asked for a $25,000 policy, as an alternative she was granted options to buy 1,000 of the company's shares at interest free loan as one of her benefits. Because employee loans were not company $35 per share. This option price was higher than the estimated fair market value of the On July 15, 2019, Alexa exercised these options. At this time the fair market value of the 134 Chapter 3 Assignment Problems company's shares at the time the options were granted in January, 2019. shares was $48 per share. Alexa immediately sold the shares for $48 per share. 4. Come of the reasons Alexa has stayed with AAAA is the employer provided free day care aged 2 and 4. She estimates that she would have to pay an annual minimum of $8,500 per facility located on AAAA's property. It is not open to the public. She has two sets of twins child for day care without the facility. 5. AAAA offers all of its employees a 20 percent discount on full price merchandise in all of its stores. Alexa purchased $2,800 worth of merchandise during 2019 and received discounts totalling $560. The discounted price of this merchandise was greater than its cost to the Company. 6. AAAA provided Alexa with the following additional benefits: Takeout Meals Eaten While Working Infrequently Required Overtime Private Health Care Plan - Employer Portion $1,200 Personal Fitness Trainer Fees In 1,800 Company Wellness Centre 700 Required Determine Alexa's net employment income for the year ending December 31, 7. Alexa was required by AAAA to use a large tablet to fulfill her employment duties. She was free to choose whatever tablet she wanted to use. Aaaa would reimburse her for it and it would be company property. During 2019, she purchased: . an iPad Pro for $1,775 (GST inclusive) a wireless printer for $450 (GST inclusive) ink cartridges and paper totaling $550 (GST inclusive) The tablet and the printer were used exclusively for Company business. Show all calculations. Assignment Run IL MIL. 15 a Canadian public company. At the time the options were granted the Company's shares were trading at $34.00 per share. The options are exercised on February 28, 2018. When the shares are sold, the proceeds of disposition are $31.00 per share. Assignment Problem Three - 10 (Employment Income) Ms. Alexa Braxton has worked for AAAA Retailers for a number of years. AAAA is a Canadian controlled private corporation. It operates three children's clothing stores in the Edmonton area. Her salary for the year 2019 was $120,000. AAAA withheld the following amounts from her earnings: Federal And Provincial Income Tax $20,400 El Premiums 860 CPP Contributions 2,749 Private Health Care Plan - Employee Portion 900 Union Dues 100 Other Information: 1. AAAA provided Alexa with a car to be used in her employment activities. In addition, the Company paid her 2019 operating costs of $10,250. The car was purchased, used, from a car dealer for $33,600, including GST of $1,600. The car was available to Alexa throughout 2019. During this period, she drove a total of 81,000 kilometers, 6,000 of which were for personal use. 2. Alexa earned the outstanding employee award for 2019. Besides a plaque, the award came with a cheque for $2,000 payable in January, 2020. 3. In renegotiating her future compensation with AAAA, Alexa had asked for a $25,000 policy, as an alternative she was granted options to buy 1,000 of the company's shares at interest free loan as one of her benefits. Because employee loans were not company $35 per share. This option price was higher than the estimated fair market value of the On July 15, 2019, Alexa exercised these options. At this time the fair market value of the 134 Chapter 3 Assignment Problems company's shares at the time the options were granted in January, 2019. shares was $48 per share. Alexa immediately sold the shares for $48 per share. 4. Come of the reasons Alexa has stayed with AAAA is the employer provided free day care aged 2 and 4. She estimates that she would have to pay an annual minimum of $8,500 per facility located on AAAA's property. It is not open to the public. She has two sets of twins child for day care without the facility. 5. AAAA offers all of its employees a 20 percent discount on full price merchandise in all of its stores. Alexa purchased $2,800 worth of merchandise during 2019 and received discounts totalling $560. The discounted price of this merchandise was greater than its cost to the Company. 6. AAAA provided Alexa with the following additional benefits: Takeout Meals Eaten While Working Infrequently Required Overtime Private Health Care Plan - Employer Portion $1,200 Personal Fitness Trainer Fees In 1,800 Company Wellness Centre 700 Required Determine Alexa's net employment income for the year ending December 31, 7. Alexa was required by AAAA to use a large tablet to fulfill her employment duties. She was free to choose whatever tablet she wanted to use. Aaaa would reimburse her for it and it would be company property. During 2019, she purchased: . an iPad Pro for $1,775 (GST inclusive) a wireless printer for $450 (GST inclusive) ink cartridges and paper totaling $550 (GST inclusive) The tablet and the printer were used exclusively for Company business. Show all calculations. Assignment Run