Ms. Emm Tax is employed as an internal auditor of Uncle Stans Enterprises Limited, a Canadian-controlled private corporation. She is provided with a car owned by the corporation to allow her to travel to the various plants and offices of the firm. An amount is withheld from her salary for the personal use of the car, which amounts to 30% of the 30,000 total kilometres driven in the year. On her auditing trips, she is away for a minimum of five days. Ms. Tax is considered to be a key employee and receives various benefits, including stock options.

Ms. Tax presents you with a shopping bag full of receipts and notes written on scraps of paper from which you develop the following information for the year 2015.

Total salary $135,807

Withholding by employer from salary

Income tax $38,000

Registered Pension Plan 6,400

Canada Pension Plan 2,480

Employment insurance 931

Group term life insurance 750

Group disability insurance (40% of total premium) 400

Payment for personal use of company car 2,100 51,061

Net Salary $ 85,746

The employer also paid her $8,100 in a travel allowance. The allowance was $135 per day for 60 days. The actual reasonable traveling expenses Ms. Tax incurred for 2015 were $10,665, consisting of $2,400 for meals, $4,400 for accommodation, and $3,865 for air and ground transportation. The net book value of the company-owned automobile is $31,280. The original cost of the automobile in November 2014 was $32,000 plus 13% HST. The company has claimed tax depreciation on the car of $7,650. The operating costs for the automobile, which the company paid, were $9, 575, including HST. Ms. Tax received a payment in the amount of $3,750 from the group disability plan while disabled due to a fall off a loading dock while counting inventory. Ms. Tax had paid premiums of a total of $1,200 since commencing employment in 2011. She has not received benefits previously.

Uncle Stans Enterprises Limited made the following contributions on behalf of Ms. Tax during 2015:

Group term life insurance policy premium $ 450

Group disability insurance plan (60% of premium) $ 600

Liberty Health extended medical insurance premium $ 900

Ontario health payroll tax $1,100

Registered Pension Plan $6,400

Ms. Tax received $1,500 from the sale of 100 shares of stock (representing less than 1% of all shares) acquired under the employee stock option plan at an option price of $10 per share. When she was granted the option in 2011, the fair market value of the stock was $12. When she exercised the option in 2011, the fair market value was $13. The company paid $950 in fees for a University of Waterloo correspondence course in philosophy taken on Ms Taxs own initiative on her own time. Ms. Tax made a donation to Lower Taxes Party of Canada, a registered political party, in the amount of $100. Ms. Tax paid $500 in premiums on a personal whole life insurance policy. Ms. Tax paid $900 in membership fees to an athletic club. Ms. Tax received $200 on Canada Savings Bonds purchased through a payroll savings plan. Ms. Tax received $100 as a birthday gift from her employer. The company deducted this amount. The company provides lunch in the executive dining room at no charge to all key employees. The cost to the company of her eating lunch once per month in this dining room was $200. Ms. Tax paid interest to the company of $100 on a $10,000 loan she received for unanticipated expenses. The loan was outstanding throughout 2015 at an interest rate of 1%. The prescribed rates for 2015 were 2%, 3%, 4%, and 3% for the first, second, third, and fourth quarters, respectively. Ms. Tax received a required uniform from the company that she was expected to wear when performing her duties. The value of this uniform was $2,700. The uniform consists of green eyeshades, elastic armbands, white blouse, and dark grey suit (three sets), all tastefully monogrammed with the firms logo. Ms. Tax paid $500 in premiums for Liberty Health private dental insurance. Ms. Tax paid $450 in dues to the Institute of Internal Auditors, a professional body recognized by legal statute. Ms. Tax made a profit of $1,200 on the sale of shares purchased as a result of a stock tip given by Uncle Stan that Underground Airways stock was about to take off. The company determined that Ms. Tax was entitled to a bonus of $4,000, but did not pay this bonus until January, 2016. The company paid $1,050 in expenses for Ms. Taxs husband who accompanied her on an auditing trip to Moosonee.

Questions:

a. Determine the amount of Ms. Taxs income from employment for 2015. Show all aspects of the required calculations, whether or not necessary to the final answer.

b. Briefly comment on why you consider any of the above amounts to be inapplicable to the calculation. Be sure to comment on all items not used in your computation of employment income.