1. In November 2019, Mr. Kumar moved from Saskatchewan to Prince Edward Island to start a new business. His income earned in PEI for the remainder of 2019 was $8,800. Mr. Kumar incurred the following costs of moving:

Transport of household effects $5,000

Travel self, spouse, and three children 2,000

Legal fees house purchase in PEI 900

Cancellation costs lease in Saskatchewan 750

Temporary accommodation while waiting

for new house at $70 per day for 30 days 2,100

House-hunting trip (prior to move) 500

Which one of the following amounts represents the maximum amount that Mr. Kumar may deduct for moving expenses in his 2019 personal income tax return?

1. $ 8,800.
2. $ 9,850.
3. $7,000.
4. $10,750.