Mr. O's employer requires him to use his own vehicle for work and pay all of the vehicle's operating costs. Mr. O. is not paid commissions. - Mr. O. purchased a vehicle on July 1, 2020 for $37,290 including HST. Mr. O. drove this vehicle 25,000 kilometers, of which 15,000 were for work. The capital cost allowance for 2020 is $15,255. During the 6 months he owned vehicle he paid: bank loan interest $1,950 gas and oil 1,840 maintenance 300 insurance 1.400 - licence plates 100 Required: Calculate the amount Mr. O. can deduct from employment income. Show all calculations. ITA 3(a) Part 1 (ITA 3) Division B Net Income to Division C Taxable income to Taxes Payable for Individuals + Bin # 1 - Net Employment - losses carry forward 20 years and carry back 3 years (carrying baskets) + Bin # 2 - Net Business & Property losses carry forward 20 years and carry back 3 years (carrying baskets) + Bin #4 - Other Income ITA 3 (b) ITA 3 (c) + Bin # 3 - Net Capital - losses carry forward for infinity and carry back 3 years (carrying basket) Bin #5 - Other Deductions = Sources of Income ITA 3 (d) Losses in current year from Bins 1, 2,4 = Division B Net Income ITA 110 Equivalent to Capital Gains Deduction for Employee Stock Options Payments included to calculation Division B but not included for Division C(e.g. social assistance) Losses from other years (carrying baskets Bin #1 & 2) Losses from other years (carrying basket Bin #3 limited to Net Capital Income included in ITA 3 (b)) ITA 111 = Division C Taxable Income X Applicable Tax Rates ITA 118 Tax Credits = Division E Taxes Payable for Individuals