Lucy Brown, a national sales manager at Microsoft Corporation in London, Ontario, presented the following information for the current taxation year.

Gross salary $56,000

Bonus based on sales 45,000

Less payroll deductions:

Employee contribution to a Registered Pension Plan (6,000)

Charitable donations Heart Foundation (2,150)

Canada Pension Plan contributions (2,189)

Employment Insurance contributions ( 856)

Group term life insurance ( 650)

Net salary $88,444

According to Lucys contract of employment, she must travel to Newfoundland, Quebec, and Prince Edward Island to oversee operations in Eastern Canada.

Lucy must pay for travelling and promotional expenses. The company does not provide her with a travelling allowance. Instead,

Lucy receives a bonus based on a percentage of Eastern Canada sales.

Lucys travelling expenses were as follows:

Meals while travelling out of town (60 days) 3,500

Accommodation 6,200

Airfare 8,800

Taxi 600

Client promotion costs:

Company logo shirts and golf balls 900

Client meals and entertainment 3,200

Holiday gifts for prospective clients 4,500

Annual golf membership 1,900

Lucys employment contract also required her to travel to the Toronto manufacturing plant and four other warehouse outlets in Southern Ontario.

The corporation provided her with a new four- door van last year. The cost of the van, including HST of 13%, was $50,850 (HST of $5,850).

The company also paid $4,400 for 100% of the operating cost.

Lucy used the vehicle for the full calendar year for both employment and weekend pleasure.

Personal kilometres driven totaled 15,000 and total kilometres driven is 25,000.

Lucy paid her annual membership fee of a professional accounting body (including HST) $800.

Microsoft also paid out the following amounts:

Group term life insurance 480

Tax Return prepared for Lucy 350

Register pension plan 2,500

Extended Health Care (Private Plan) 560

Lucy would like you to calculate her income from employment for income tax purposes for the current year.

Provide explanations for all items included omitted items