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Joan Galley is a salesperson for Goodship Lollipop Ltd . , a Canadian public corporation with gross revenues of $ 4 5 million. The company

Joan Galley is a salesperson for Goodship Lollipop Ltd., a Canadian public corporation with gross revenues of $45 million. The company produces various sweets such as candy and chocolate bars. It has been a stressful time for Joan these last 18 months. In the summer of 2022, her spouse passed away. Joan has two children: Ryan who is 13 and Julie who turned 18 on April 30,2023. Joan's 2023 employment contract states that she will be paid an annual base salary of $50,000 plusJoan Galley is a salesperson for Goodship Lollipop Ltd., a Canadian public corporation with gross revenues of $45 million. The company produces various sweets such as candy and chocolate bars. It has been a stressful time for Joan these last 18 months. In the summer of 2022, her spouse passed away. Joan has two children: Ryan who is 13 and Julie who turned 18 on April 30,2023. Joan's 2023 employment contract states that she will be paid an annual base salary of $50,000 plus a commission of 1.5% of her annual cash sales. Her 2022 sales totaled $3,200,000, with $200,000 of this total collected by the company in 2023. Her 2023 sales amounted to $2,800,000, but the company had yet to collect $300,000 of these by December 31,2023. In 2023, her employer paid Joan her base salary plus her commission income. A review of her last pay stub for 2023 reveals the following was withheld from her salary for the year: Contributions to the Company RPP $3,000 CPP Contributions 3,754 EI Premiums 1,002 Premiums for the Company's Dental and Health Plan*1,500 Federal Income Tax Withheld 15,000* The plan is funded 50/50 by the employees and the employer and is a Private Health Services Plan (PHSP). Joan is covered by the company's group term life insurance. Her coverage is equal to her annual base salary. The company pays a premium of $5 for every $1,000 of coverage to the Sweet Life Insurance Company. In January of 2023, Joan detected a packaging problem with a particular line of candies before these were to be shipped. Her keen eye saved the company an estimated $360,000 in product recalls. This helped her win the employee of the year reward of an iPad2 which cost the company $900. In September of 2022, her employer transferred her from Montreal to Toronto. She thought the change would be beneficial after the death of her spouse a few months earlier. Her employer paid for all her moving expenses. Unfortunately, due to the quick sale of her Montreal home, she incurred a $30,000 loss on its sale. Goodship Lollipop agreed to reimburse her $20,000 of the $30,000 loss, but only in January of 2023. The $20,000 was actually received on January 14,2023. In April of 2022, Joan's employer granted her the right to purchase up to 5,000 shares of the company for $17 per share under the employee stock option plan. At the time the option was granted, the shares were trading for $15. On February 1,2023, when the shares were trading at $20 per share, she exercised her option on 3,000 shares. She sold 2,000 shares at $22 per share with a settlement date of December 30,2023. In order to purchase the 3,000 shares, Joan negotiated an interest free loan from her employer for the purchase price. The loan was received on February 1,2023. Joan repaid the loan in full on December 31,2023. Throughout 2023 her employer provided her with an automobile, which it leases for $450 a month. The automobile was also available for her personal use. During the year, Joan drove a total of 35,000 kilometers, 8,000 of which were personal and 27,000 of which were for employment purposes. Except for $2,200 of car insurance, Goodship Lollipop did not pay for any of her automobile operating expenses as these were Joan's responsibility. Joan is responsible for her salesperson expenses (including the automobile operating expenses). During the year she incurred the following: Total Automobile Expenses (Excluding Insurance) $5,400 Meals and Entertainment with clients (not billed to clients)2,600 Hotels 1,500 All of the meals and entertainment with clients was incurred while she was away for a minimum of 24 hours. Joan is a member of the Confectioners Association of Canada, a professional association. Her annual membership dues are $1,400. Joan meets all of the conditions of ITA 8(1)(f)(deductible salesperson expenses). Joan has a sideline business which she carries on as a sole proprietor. The business is called The Cup Cake Diva. She started her business venture a few years ago and has continued it in Toronto. Joan prepares and sells cupcakes and other pastries from her home. Most of her sales are made for social events which are typically held on weekends. Joan provides you with the following information for 2023 with respect to her business: Sales Revenues $42,000 Supplies (Flour, Sugar, Boxes, Etc.) Purchased 12,000 Purchase of New Commercial Oven (For Business use only)2,200 Purchase of new automobile for cash (Not zero-emission)39,000 Automobile operating ex

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