Margarita Dalvi is a fnancial analyst employed by a large public company with gross revenues of

$$295$ million. Her salary in $2023$ is $$143,000,$ none of which is commission income. Her employer

does not require that she pay any travel or other expenses. In addition, she was awarded an incen$-$tive bonus of $$34,500.$ Two$-$thirds of this bonus was received in $2023,$ with the balance to be

received in September $2024.$

Ms$.$ Dalvi$$s employer withheld the following amounts from her earnings:

EI premiums $ $1,002$

CPP contributions $3,754$

RPP contributions $6,400$

Federal income tax $29,000$

Contributions to United Way, a Canadian registered charity $4,000$

Professional association dues $1,200$

Ms$.$ Dalvi is $55$ years old and is married to Jonathan Dalvi, who has been legally blind since an

automobile accident that occurred several years ago. Jonathan turned $65$ years of age in Decem$-$ber $2023.$ His only income in $2023$ is income from investments of $$7,200.$ The couple has three

children:

Martha is $15$ years old. She has $2023$ net income from various part$-$time jobs of $$11,000.$

Mary is $19$ years old and struggles with mental health issues that prevent her from working

on a full$-$time basis. She lives with her mother and father and has $$4,800$ of income from part$-$time employment in $2023.$ Mark is $21$ years old and attends university on a full$-$time basis for $10$ months of the year.

His tuition fees were $$9,400$ and paid for by Ms$.$ Dalvi. As he has no income of his own, he

has agreed to transfer the maximum tuition amount to his mother.

The family$$s $2023$ medical expenses, all of which were paid by Ms$.$ Dalvi, were as follows:

Ms$.$ Dalvi and her husband $ $6,200$

Martha $1,800$

Mary $11,300$

Mark $2,500$

Other Information:

$1.$ Ms$.$ Dalvi is provided with an automobile by her employer. The automobile is leased at

a rate of $$728$ per month, including HST$.$ The lease payment includes $$50$ per month for

insurance coverage. In $2023,$ the automobile is driven $57,000$ kilometres, of which $42,000$

were for employment purposes and $15,000$ were for personal use. The automobile was

used by Ms$.$ Dalvi for $11$ months of $2023.$ She was required to return the automobile to her

employer$$s premises during the month she did not use it$.$

$2.$ In $2023,$ Ms$.$ Dalvi spent $$14,800$ on employment$-$related meals and entertainment with clients

at local establishments. Her employer reimbursed $$9,500$ of these expenses. She estimates

that $$3,900$ of the expenses were for her own meals.

$3.$ Throughout their marriage, the Dalvis have always lived in rented premises, but they decide to

purchase a four$-$bedroom bungalow in the same neighbourhood for $$672,000$ on July $1,2023.$

On this date, her employer provides Ms$.$ Dalvi with a $$250,000$ interest$-$free loan that will

facilitate the purchase. However, the balance must be paid in full on July $1,2028.$ Assume that

the prescribed interest rate is $1\%$ throughout $2023$

please can you answer according to this template

Part A

Ms$.$ Dalvi$$s minimum $2023$ employment income would be calculated as follows:

Salary Additions:

Bonus $[(2/3)($$$34,500)]$

Automobile Benefit $($Note $1)$

Client Meals and Entertainment $($Note $2)$

Interest Free Loan Benefit $($Note $3)$

Gifts $($Note $4)$

Stock Options $($Note $5)$

Deductions:

RPP Contributions

Professional Association Dues

$2023$ Employment Income

Note $1$ The automobile benefit would be calculated as follows:

Standby Charge

Operating Cost Benefit $-$ Lesser of:

$$

$$

Total Benefits

$*[(11)(1,667)$

As Ms$.$ Dalvi$$s employment$-$related use was more than $50\%,$ the reduced standby charge is available. In addition, she can use the alternative calculation of the operating cost benefit as long as she informs her employer in writing by December $31,2023.$

Note $2$ Ms$.$ Dalvi$$s meal and entertainment costs exceed her employer$$s reimbursement by $$5,300($$$14,800$ $$9,500).$ The only options for claiming an employment expense are ITA $8(1)($f$)$ and $($h$)$ which both require her to personally pay employment expenses according to her employment contract. Since there is no such requirement she cannot claim any of the excess amounts spent. If the expenses could be claimed she would not be able to expense her own meal expenses as a result of ITA $8(4)$ because the meals were not incurred while she was away from her employer$$s place of business for a minimum of $12$ consecutive hours.

Note $3$ As there has been no change in the prescribed interest rate, the taxable benefit on the loan is calculated as follows:

$[(1\%)($$$250,000)(6/12)]=$ $$1,250$

Note $4$ Prior to $2022$ the gift certificate for $$400$ would have been fully taxable as a near$-$cash gift without the benefit of the $$500$ exemption. As of January $1,2022,$ the CRA has revised their policy with respect to gift cards and gift certificates in the name of a single or group of retailers where certain conditions are met, including that the gift certificate or gift card cannot be converted to cash and that it was provided for a special occasion. As a result, the Note $5$ The stock option