Ms. E. lives and works in Ontario as an internal auditor for a public corporation. She is required to travel for work. Ms. E. provides you with the following information for 2020:

Gross Salary $60,000

Income Tax Withheld 15,900

CPP Contributions Employee 2,898

EI Contributions Employee 856

Registered Pension Plan Contributions Employee 3,000

Charitable Donations 100

Reimbursement Paid by Employee for Use of Company Vehicle 300

Employer paid Ms. E.s private health care premiums 625

Ms. E. has the use of a company car for the entire year. She drove the car a total of 25,000 kilometers. 20% of those kilometers were for personal reasons. The company paid the cars annual $3,200 operating costs and $4,500 lease payments.

Ms. Es employer gives her a monthly travel allowance of $400 and requires her to pay for her own meals and accommodations while traveling for work. She spent $3,000 on meals and entertainment, and $4,000 for accommodations.

Ms. E. made a $1,500 contribution to a Registered Retirement Saving Plan. She paid $300 in professional dues, and paid a lawyer $200 attempting to collect wages owing to her from a previous employer.

Required: Calculate Net Employment Income for 2020 (Division B, Subdivision a). Show all calculations.

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) ITA 3(a) + Bin # 2 - Net Business & Property - losses carry forward 20 years and carry back 3 years (carrying baskets) + Bin #4 - Other Income ITA 3 (b) + Bin #3 - Net Capital - losses carry forward for infinity and carry back 3 years (carrying basket) ITA 3 (C) - 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