Jane Jackson resides in Edmonton, AB, and has been employed by Finlay Ltd. for a number of years as their accountant. - Jane's T4 slip for the current year indicates the following amounts were deducted from her gross salary of $80,000 : * See the current year's tax rate sheet to determine the CPP and EI reported on the T4 slip. - The following amounts are paid by Finlay Ltd. and not included on Jane's current year T4 slip: - Finlay Ltd. provided Jane with a motor vehicle for the entire year, and the company also paid for all operating costs for the vehicle, with o5 150 naid for nneratinn encte in the current vear The vehicle wac the company also paid for all operating costs for the vehicle, with $5,150 paid for operating costs in the current year. The vehicle was purchased by Finlay Ltd. three years ago at a cost of $50,000 (incl. GST). In the current year, Jane drove 22,000 kilometres; 10,000 kilometres were personal and 12,000 were for employment purposes. - On October 1 of the current year, Jane purchased 1,000 shares of Finlay Ltd. under a stock option plan. Finlay Ltd. is a Canadian public corporation. The following information is provided: Stock Options Option granted on Jan, 1 of the prior year, FMV Option price Amounts =$10 per share =$10 per share Amounts Stock Options nntion exercised on July 1 of the current year, FMV=$16 per share Note: On December 31 , Jane continues to hold the 1,000 Finlay Ltd. shares, since she anticipates they will appreciate in value. - In the current year, her mother travelled with her to Montreal when Jane attended a five-day conference for accountants. Finlay Ltd. reimbursed her for the full cost of $5,000, of which $2,000 (including GST) was for expenses she incurred for her mother. - On July 1 of the prior year, Finlay provided Jane with an employee loan in the amount of $10,000 at the annual interest rate of 1%. The loan requires annual principal repayments of $2,000 on June 30 of each year. Jane made the first annual repayment on June 30 of the current year. - Canada Revenue Agency's interest rates for the calendar quarters in the current year are: - In the current year, Jane paid the following amounts personally: CPA professional dues (annual) in the amount of $800 (paid on June 30 ) Employment expenses: Jane paid for supplies (used for employment purposes) in the amount of $1,250 (expenses occurred throughout the year). Finlay Ltd. has authorized these expenses and filed Form T2200 accordingly. Answer the following: 1. For each amount paid by Finlay Ltd. that was not reported on Jane's T4 slip, determine if there is a taxable benefit and give brief explanations to support your response (i.e., explain why the amount is a taxable or non-taxable benefit). 2. Calculate the total amount of taxable benefits for Jane in the current year (show all your calculations). Jane Jackson resides in Edmonton, AB, and has been employed by Finlay Ltd. for a number of years as their accountant. - Jane's T4 slip for the current year indicates the following amounts were deducted from her gross salary of $80,000 : * See the current year's tax rate sheet to determine the CPP and EI reported on the T4 slip. - The following amounts are paid by Finlay Ltd. and not included on Jane's current year T4 slip: - Finlay Ltd. provided Jane with a motor vehicle for the entire year, and the company also paid for all operating costs for the vehicle, with o5 150 naid for nneratinn encte in the current vear The vehicle wac the company also paid for all operating costs for the vehicle, with $5,150 paid for operating costs in the current year. The vehicle was purchased by Finlay Ltd. three years ago at a cost of $50,000 (incl. GST). In the current year, Jane drove 22,000 kilometres; 10,000 kilometres were personal and 12,000 were for employment purposes. - On October 1 of the current year, Jane purchased 1,000 shares of Finlay Ltd. under a stock option plan. Finlay Ltd. is a Canadian public corporation. The following information is provided: Stock Options Option granted on Jan, 1 of the prior year, FMV Option price Amounts =$10 per share =$10 per share Amounts Stock Options nntion exercised on July 1 of the current year, FMV=$16 per share Note: On December 31 , Jane continues to hold the 1,000 Finlay Ltd. shares, since she anticipates they will appreciate in value. - In the current year, her mother travelled with her to Montreal when Jane attended a five-day conference for accountants. Finlay Ltd. reimbursed her for the full cost of $5,000, of which $2,000 (including GST) was for expenses she incurred for her mother. - On July 1 of the prior year, Finlay provided Jane with an employee loan in the amount of $10,000 at the annual interest rate of 1%. The loan requires annual principal repayments of $2,000 on June 30 of each year. Jane made the first annual repayment on June 30 of the current year. - Canada Revenue Agency's interest rates for the calendar quarters in the current year are: - In the current year, Jane paid the following amounts personally: CPA professional dues (annual) in the amount of $800 (paid on June 30 ) Employment expenses: Jane paid for supplies (used for employment purposes) in the amount of $1,250 (expenses occurred throughout the year). Finlay Ltd. has authorized these expenses and filed Form T2200 accordingly. Answer the following: 1. For each amount paid by Finlay Ltd. that was not reported on Jane's T4 slip, determine if there is a taxable benefit and give brief explanations to support your response (i.e., explain why the amount is a taxable or non-taxable benefit). 2. Calculate the total amount of taxable benefits for Jane in the current year (show all your calculations)
