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 $30,2023.$ Her son Ryan is in high school and has no income of his own.

Her daughter Julie, not knowing which university program she would like to attend, was enrolled part$-$time $(4$ months$)$ at a local college. Joan agreed to pay her tuition of $$1,600$ as long as Julie agrees to transfer any related credit to her $($Joan$).$ Julie$$s $2023$ net income is $$7,200.$

Joan's $2023$ employment contract states that she will be paid an annual base salary of $ $50,000$ plus a commission of $ $38,000.$ 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 $1,002$

Federal Income Tax Withheld $15,000$

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.

Joan is a member of the Confectioners$$ Association of Canada, a professional association. Her annual membership dues are $ $1,400.$

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 Purchased $($Flour$,$ Sugar, Boxes, Etc.$)12,000$

Purchase of New Commercial Oven

$($a $$class $8$ asset used for Business use only$)2,200$

With respect to the supplies, she had an opening inventory of $$1,600.$ On December $31,2023$ the inventory of supplies was $$900.$

Joan uses $20\%$ of the livable space in her home $($including a component for common areas$)$ for her business. Her full$-$year $2023$ household expenses include the following:

Utilities $ $5,400$

Municipal Property Tax $3,800$

Maintenance $1,600$

Dedicated Phone Line $(100\%$ for business use only$)800$

Home Insurance $1,900$

Mortgage Interest $12,300$

The business had only one UCC balance at January $1,2023,$ which was:

Class $8$ $ $3,100$

Joan does not claim CCA on her home as she realizes that if she did, this would result in future recapture and capital gain implications.

During the year, Joan paid $ $5,000$ for orthodontic work $($braces$)$ for Ryan. She was reimbursed $50\%$ of the amount through the company$$s dental and health plan.

In $2023,$ Joan made $ $1,600$ of donations to registered charities; and also paid instalments to the CRA for $2023$ of $ $4,900$ during the year.

Required: Prepare the T$1$ tax return for Joan to CRA$-$acceptable standards. Then answer the following $$numerical$$ questions in the spaces provided below:

Q#$1.$ What amount $($if any$)$ of the $$stock options benefit$$ did you include as taxable for this taxpayer.?

$($enter an answer of $0$ in the Moodle space if your response is NIL$).$