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. The following expenses relate to Barrys home office which occupies 7% of the square footage of his house:

• Mortgage interest 18,000
• Utilities 4,100
• House insurance 2,150
• Municipal taxes 5,050
• Maintenance and repairs 3,700

Total $33,000

7% thereof $2,310

• Capital cost allowance on computer equipment 2,035
• Rental of photocopier 1,500
• Office supplies 950
• Rental of Fax Machine 700
• Cellular phone charges (used for employment-related calls only) 800
• Long distance calls related to business. 2,000

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