Leon is employed fulltime as the Global Head of Human Resources at a large public corporation with its head office located in Toronto. The following information is provided regarding his 2020 taxation year: 1) Salary $275,000 Payroll deductions (paid by Leon): Employment Insurance premiums $ 856 Canada Pension Plan contributions 2,898 Registered pension plan contributions 9,000 Income tax 50,400 Take home salary after deduction 211,846 2) Company paid for the following amounts on Leon's behalf in 2020:

a. Canada Pension Plan contributions $2,989 b. Employment Insurance premiums 1,198 c. Registered pension plan contributions 9,000

d. Gym membership 500

e. Group term life insurance premium 700 f. Extended health and dental premium 600

g. Group sickness and accident insurance 400

3) Leon is provided with a company car and State Fund pays the $1,000 per month lease cost and $200 for insurance. The company also pays for the annual operating costs of $3,500. Leon drove the car for 20,000 km in 2020, and the travel log shows that about 30% of the total km related to carrying out employment duties.

4) Leon also participates in company's employee stock option plan, and in 2016 was granted the option to acquire shares for $45 per share. At the time, the shares were trading for $39 per share. Leon exercised the option in January of 2020 and acquired 1,000 shares (the shares were trading for $50 per share at that time). In December 2020, Leon sold 800 shares for $52 per share.

5) Company allows employees to work from home two days a week. Leon maintains a home office and allocates 10% of the housing costs (property tax, internet, utilities, and home insurance) to this office. In 2020, 10% of the total costs were $2,400. Leon also purchased a new computer in 2020 for $3,000 to be used exclusively for working from home. The nature of Leon's work (HR) does not require meeting with clients of the company.

Required: Calculate Leon's income from employment for 2020.

Question 3

Gurpreet Sandhu received a $300,000 inheritance in 2020. With the proceeds, Gurpreet purchased the following investments:

1) Two rental properties: Property A has a value of $85,000, of which $40,000 is allocated to the building. Property B has a value of $110,000, of which $60,000 is allocated to the building. The properties earned a total of $9,750 in rental income before CCA. Both buildings are Class 1 - 4% assets, and the maximum allowable CCA will be claimed each year. The capital growth of the two properties combined is expected to be 5%.

2) A 3-year bond purchased on July 1st: Valued at $50,000 with 10% annual interest paid at maturity 3) Portfolio shares: Worth $10,000 - Eligible dividends in the amount of $700 were paid to Gurpreet before the end of the year. The capital growth of the shares is expected to be 3%.

4) A cash dividend of $800 received form a foreign company (a 20% withholding tax was deducted by the foreign government on the principle amount of dividend).

5) He paid $7000 fee to a financial planner for the investment advice.

The remainder of the money was applied to the mortgage.

Required: Calculate Gurpreet's minimum property income for 2020