Ms. Davis is the sales manager employed by Wize Products Inc. and has asked for your assistance in preparing her 2019 income tax return. Ms. Davis informs you that she earned $135,000 salary and $45,000 commissions

in 2019, and has provided you with the following additional information:

(A) According to her contract, she must provide an automobile in order to carry out her duties of employment  and must pay for all her expenses.

(B) Automobile:

             She purchased a new car on Jan.6, 2019 at a price of $75,250. She borrowed the full amount from

             Wize Products Inc. interest free on that day. The prescribed rate of interest for all of 2019 was 6% .

             She drove a total of 40,000 km. during the year of which 10,000 km. were for personal use.

(C) Expenses:

             Ms. Davis paid the following amounts to earn her commissions:

            

Airline tickets.......................................	$ 2,450
Golf club membership fees..................	$ 4,700
Clients’ meals and entertainment.........	$ 1,600
Operating costs of car...........................	$ 8,000
Laptop computer..................................	$    600

               

(D) Home Office Costs

During the year Ms. Davis maintained a home office as none was provided by her employer, and incurred the following costs:

                 

Utilities.................................................	$ 2,650
Home insurance...................................	$    900
Property taxes.......................................	$ 2,500
Mortgage interest.................................	$13,000
Office furniture....................................	$ 4,000
Telephone business calls.....................	$ 1,300
Office supplies.....................................	$     650

              The office space was 15% of the total living space

.

(E) Additional Information:

             (1) Ms. Davis’s employer paid $350 in premiums on behalf of Ms. Davis for a group term life                                     insurance policy which covered Ms. Davis for $125,000.

             (2) One of her employer’s customers gave Ms. Davis a free vacation in Bermuda for 2 weeks

                   in recognition of the good service rendered to the customer. Value - $4,550.

             (3) Ms. Davis incurred interest expense of $700 on a bank loan to buy the office furniture.

  

REQUIRED:

Determine Ms. Davis’s net employment income for the 2019 taxation year.

Jurisdiction, Canada