Isabel Lexington has established herself as a very effective sales representative for products related to software and professional development services. While she has worked independently for a number of years, she has received two very attractive offers of employment at different companies. Both of these offers would require that she begin work on January 2, 2021. Company Alpha This offer would provide her with a fixed salary of $225,000 per year with no commissions on her sales. The employer would provide an allowance of $30,000 per year to cover hotel, meals, and airline costs. The employer believes that the CRA will consider this allowance to be reasonable in the circumstances. With respect to advertising and promotion expenses, no allowance or reimbursement would be provided. This employer would provide her with an automobile which would be leased at a cost of $850 per month, including a $75 per month payment for insurance. The employer will pay all of the operating costs of the automobile. This employer would provide her with a $200.000 interest free loan that she will use to purchase investments. The loan will have to be repaid after five years. Company Bota This offer would provide her with a fixed salary of $175,000 per year, plus a commission on all of her sales. Ms. Lexington estimates that for 2021. commissions will total $85,000. The employer would reimburse her hotel, meal, and airline costs. With respect to advertising and promotion expenses, no allowance or reimbursement would be provided. The employer will not provide her with an automobile but will provide her with an allowance for using her own automobile of $1,500 per month. Ms. Lexington estimates that for 2021 the total costs associated with driving her own automobile will be as follows: Operating Costs $10,600 CCA 4,500 Financing Costs 1,800 Total $16,900 Other Information The following information is applicable to either of the alternative offers. 1. She estimates that her employment related expenses during 2021 would be as follows: Travel Costs (Hotel and Airline Costs) Travel Costs (Meals) Advertising and Promotion $18,000 8,500 23.000 2. Whether it is the employer's automobile or her own automobile, she would use the car throughout 2021. She expects to drive this vehicle a total of 53,000 kilometers during 2021, with 37,000 of these kilometers for employment purposes and 16,000 kilometers for personal use. 3. Both offers include a group disability insurance plan for which the company will pay all of the premiums. The plan provides periodic benefits that compensate for lost employment income. This will cost the employer $4,500 per year. 4. Both offers include a $1,000,000 face value life insurance policy. All of the premiums, which will total 53,800 per year, will be paid by the employer. 5. Company Beta includes access to a corporate discount on any software. The maximum discount eligibility is a total of $1,500 per calendar year which Isabel intends to utilize in full. 6. Company Alpha offers accessibility to utilize the owner's ski lodge in Aspen for 1 week between January and March of each year. The value of the week accommodations is estimated to cost $2,450 if Isabel had to pay for it herself. 7. Assume that the prescribed interest rate on employee loans is 2% throughout 2021. REQUIRED: A) Based on the estimates made by Ms. Lexington, calculate Ms. Lexington's minimum 2021 employment income for each of the two offers. Ignore PST and GST/HST considerations. B) Recommend to Ms. Lexington which offer would be in her best interest to accept, support your recommendation. Discuss the factors that Ms. Lexington should consider in deciding between the two alternatives. C) Discuss ways to minimize her tax implications in the future-tax planning.