It is January 31st and your third-year university roommate Michel understands you recently completed a tax course and ask you for your help with his 2022 tax return. During the 2022 school semesters he was employed by Locals' Only Pub ("LOP") where he earned a salary of $20,000. He also earned $3,000 in tips and won $4,000 in the staff's weekly post Saturday closing poker game. LOP's owner was concerned that Michel may have been developing an addiction problem and paid $2,000 for him to participated in a counselling and well-being retreat. A couple months later and Michel no longer appeared on the schedule and a $2,500 in wages was unpaid. Michel hired a lawyer and paid $500 to collect the unpaid wages and $1,000 to defend against an assault charge that followed a poker game. Michel misses working at LOP as he could also eat meals there for price, basically the cost of the food, and he figures this saved him $750 per month. LOP, as part of its support a student program, also paid for one of his courses at a cost of $1,000. During the summer, May 1st to August 31st, Michel was employed by a Drop Cloth Paints Inc. ("DCPI"), a manufacturer of paints and specialty coatings. He was provided with a station wagon which he drove 12,000kms for work and 4,000kms for personal use. The new cost of the wagon was $38,000 but Michel figured its market value would presently be about $18,000. He paid DCPI $100 per month to cover his personal use of the wagon. He earned $14,000 in salary and $6,000 in commission from DCPI. In the course of his employment he incurred the owing expenses: Metal working course to meet clients 4x4 off-road club to meet clients Evenings out with prospective clients at trade shows $1,500 $ 250 $ 2,000 Michel also purchased a $1,000 smart phone and a $60 per month plan, he did not exceed the plan limits and used the phone -80% for work. As part of its employees of the future program, DCPI issue 1,000 options to each student who held a summer job. In mid-December, to fund his winter vacation, Michel exercised all the options and sold the shares. He purchased the shares for $8, sold them for $10. At the time he was issued the options, the shares had a fair market value of $7.

recently completed a tax course and ask you for your help with his 2022 tax return. During the 2022 school semesters he was employed by Locals' Only Pub ("LOP") where he earned a salary of $20,000. He also earned $3,000 in tips and won $4,000 in the staff's weekly post Saturday closing poker game. LOP's owner was concerned that Michel may have been developing an addiction problem and paid $2,000 for him to participated in a counselling and well-being retreat. A couple months later and Michel no longer appeared on the schedule and a $2,500 in wages was unpaid. Michel hired a lawyer and paid $500 to collect the unpaid wages and $1,000 to defend against an assault charge that followed a poker game. Michel misses working at LOP as he could also eat meals there for 1/2 price, basically the cost of the food, and he figures this saved him $750 per month. LOP, as part of its support a student program, also paid for one of his courses at a cost of $1,000. During the summer, May 1st to August 31st, Michel was employed by a Drop Cloth Paints Inc. ("DCPI"), a manufacturer of paints and specialty coatings. He was provided with a station wagon which he drove 12,000kms for work and 4,000kms for personal use. The new cost of the wagon was $38,000 but Michel figured its market value would presently be about $18,000. He paid DCPI $100 per month to cover his personal use of the wagon. He earned $14,000 in salary and $6,000 in commission from DCPI. In the course of his employment he incurred the following expenses: - Metal working course to meet clients - 44 off-road club to meet clients - Evenings out with prospective clients at trade shows $$$1,5002502,000 Michel also purchased a $1,000 smart phone and a $60 per month plan, he did not exceed the plan limits and used the phone 80% for work. As part of its employees of the future program, DCPI issue 1,000 options to each student who held a summer job. In mid-December, to fund his winter vacation, Michel exercised all the options and sold the shares. He purchased the shares for $8, sold them for $10. At the time he was issued the options, the shares had a fair market value of $7