Mr, Barry Smith who is a salesman in Toronto, Ontario, has incurred the following expenses in connection with his employment in 2022. He was not reimbursed and did not receive an allowance in respect of any of these expenses. Barry has a form T2200, signed by his employer, attesting to all of these expenses Barry uses one room in his home exclusively as a home office. He uses his home office most days and evenings to do paperwork and make phone calls and his home office computer is connected to his employers computer system. He visits his office at his employers premises approximately once a week and spends the remainder of the time on the road, making sales calls throughout Western Canada

1. Barry has the following promotional expenses:

• Meals (with clients in Toronto, Barrys meals) $3,000
• Theatre tickets 1,800
• Promotional gifts 1,700
• Country club membership 3,500
• 0975 Taxation for Canadian Business

2. Barry paid the following automobile expenses:

• Gas and oil $2,700
• Insurance 2,100
• License 190
• Repairs 1,800
• Parking (employment related) 620

Barry purchased the car that he uses for employment purposes on August 1, 2021 for $50,000 plus $2,500 GST and $4,000 PST. Barry claim CCA on the car in 2021. The car was driven a total of 30,000 kilometres in 2022; 18,000 of he kilometres driven related to Barrys employment use.

1) Barry also incurred the following travel expenses (while away at least 12 hours):

• Airfare $ 6,520
• Meals and accommodation (including $2,400 for meals) 5,960
• Registration fees for convention in Montreal to increase product knowledge 1,200
• Out-of-town entertainment 4,200

2) Interest on bank loan:

• to buy the computer equipment for the home office in (1) above $520
• to buy the car in (4) above 900

3) Barrys remuneration from employment is as follows:

• Salary $75,000
• Bonus based on company sales 32,000

4) Toronto, Ontario has GST of 5% and PST of 8%.

Barry Smith has been assessed by CRA to be an employee for the calendar year 2022. He hires you to calculate his income and expenses assuming that he is an employee. Clearly show all your work and explain any omissions from the calculation