Ms. Mahta Amiri is a Certified Financial Planner (CFP) with many years of experience. On December 1, 2020, she resigned from her position with a large financial institution in London, Ontario. She had not been happy with her job and was feeling unappreciated.

After several months of job hunting, Mahta decided to take a position with Pleasant Retirement Planning Ltd. (PRPL), a Canadian controlled private corporation (CCPC) located in Milton, Ontario. She started working for PRPL on May 1, 2021

The following items pertain to Mahtas employment information for the 2021 taxation year. For each "question", provide the effect on Mahtas net employment income.

PRPL contributed $17,000 into an RPP (Registered Pension Plan) on Mahta's behalf.

1 points

QUESTION 2

PRPL has a stock option plan for its employees. Under this plan, Mahta acquired 1,000 of the company's shares at a price of $10.31 per share on September 1, 2021. At the time the options were issued, the shares had a fair market value (FMV) of $10.31 per share. On September 1, PRPL shares had a FMV of $12.34 per share. On December 15, she sells 700 of these shares for $11.62 per share.

4 points

QUESTION 3

PRPL withheld the following required amounts from Mahta's salary:

Income Taxes $37,903

Canada Pension Plan (CPP) Contributions 2,876

Employment Insurance (EI) Premiums 890

1 points

QUESTION 4

PRPL provides group medical coverage to all of its employees. The private health plan premiums paid by PRPL on Mahta's behalf cost $462 for the year.

1 points

QUESTION 5

Because of her strong professional reputation, PRPL paid Mahta a signing bonus of $25,000. The signing bonus was paid on June 1, 2021.

1 points

QUESTION 6

Mahta contributed $5,450 into her employer provided RPP (Registered Pension Plan) during the year.

1 points

QUESTION 7

Mahta has a home office and PRPL has provided her with a signed form T2200 stating that she is required to pay for certain employment expenses without reimbursement and use a portion of her home for work. Mahta purchased $180 in stationary and supplies for her home office during 2021.

1 points

QUESTION 8

During the year, Mahta received two non-cash gifts, a birthday gift worth $289 and a Christmas gift worth $483.

2 points

QUESTION 9

On December 12, 2021, a bonus of $14,500 was accrued for Mahta. She received $8,400 of this bonus on December 21, 2021. The remainder is to be paid on January 27, 2022.

2 points

QUESTION 10

PRPL provides Mahta with a vehicle that was purchased in 2021 for $35,500 including HST. The vehicle was used by Mahta for 11 months during the year. During this period, she drove the vehicle a total of 20,000 kilometers, of which 12,000 were for personal use. PRPL pays all operating and maintenance costs, a total of $8,900 during the period that Mahta used the car. PRPL withheld $160 per month from her salary to pay for her personal use of the vehicle.

4 points

QUESTION 11

Mahta has a home office and PRPL has provided her with a signed form T2200 stating that she is required to pay for certain employment expenses without reimbursement and use a portion of her home for work. Mahta's office takes up 12% of her 1700 square foot home. She incurs the following expenses related to her home in 2021:

Gas (heating):

$3,210

Mortgage Interest:

14,000

Property Taxes:

4,000

3 points

QUESTION 12

During the period May 1, 2021 through December 31, 2021, Mahta earned salary of $122,212. Of these earnings, $117,783 was paid during this period with the remainder paid in the first pay period of 2021.

1 points

QUESTION 13

Mahta paid $2,800 in CFP dues in 2021. PRPLs policy is to reimburse 50 percent of such professional dues and Mahta was reimbursed accordingly in December of 2021.

2 points

QUESTION 14

Because of the need to invest some of her additional income, PRPL provided Mahta with financial counseling services. The value of these services was $2,362.

Ms. Mahta Amiri is a Certified Financial Planner (CFP) with many years of experience. On December 1, 2020, she resigned from her position with a large financial institution in London, Ontario. She had not been happy with her job and was feeling unappreciated.

After several months of job hunting, Mahta decided to take a position with Pleasant Retirement Planning Ltd. (PRPL), a Canadian controlled private corporation (CCPC) located in Milton, Ontario. She started working for PRPL on May 1, 2021.

The following items pertain to Mahtas employment information for the 2021 taxation year. For each "question", provide the effect on Mahtas net employment income.

PRPL contributed $17,000 into an RPP (Registered Pension Plan) on Mahta's behalf.

1 points

QUESTION 2

PRPL has a stock option plan for its employees. Under this plan, Mahta acquired 1,000 of the company's shares at a price of $10.31 per share on September 1, 2021. At the time the options were issued, the shares had a fair market value (FMV) of $10.31 per share. On September 1, PRPL shares had a FMV of $12.34 per share. On December 15, she sells 700 of these shares for $11.62 per share.

4 points

QUESTION 3

PRPL withheld the following required amounts from Mahta's salary:

Income Taxes $37,903

Canada Pension Plan (CPP) Contributions 2,876

Employment Insurance (EI) Premiums 890

1 points

QUESTION 4

PRPL provides group medical coverage to all of its employees. The private health plan premiums paid by PRPL on Mahta's behalf cost $462 for the year.

1 points

QUESTION 5

Because of her strong professional reputation, PRPL paid Mahta a signing bonus of $25,000. The signing bonus was paid on June 1, 2021.

1 points

QUESTION 6

Mahta contributed $5,450 into her employer provided RPP (Registered Pension Plan) during the year.

1 points

QUESTION 7

Mahta has a home office and PRPL has provided her with a signed form T2200 stating that she is required to pay for certain employment expenses without reimbursement and use a portion of her home for work. Mahta purchased $180 in stationary and supplies for her home office during 2021.

1 points

QUESTION 8

During the year, Mahta received two non-cash gifts, a birthday gift worth $289 and a Christmas gift worth $483.

2 points

QUESTION 9

On December 12, 2021, a bonus of $14,500 was accrued for Mahta. She received $8,400 of this bonus on December 21, 2021. The remainder is to be paid on January 27, 2022.

2 points

QUESTION 10

PRPL provides Mahta with a vehicle that was purchased in 2021 for $35,500 including HST. The vehicle was used by Mahta for 11 months during the year. During this period, she drove the vehicle a total of 20,000 kilometers, of which 12,000 were for personal use. PRPL pays all operating and maintenance costs, a total of $8,900 during the period that Mahta used the car. PRPL withheld $160 per month from her salary to pay for her personal use of the vehicle.

4 points

QUESTION 11

Mahta has a home office and PRPL has provided her with a signed form T2200 stating that she is required to pay for certain employment expenses without reimbursement and use a portion of her home for work. Mahta's office takes up 12% of her 1700 square foot home. She incurs the following expenses related to her home in 2021:

Gas (heating):

$3,210

Mortgage Interest:

14,000

Property Taxes:

4,000

3 points

QUESTION 12

During the period May 1, 2021 through December 31, 2021, Mahta earned salary of $122,212. Of these earnings, $117,783 was paid during this period with the remainder paid in the first pay period of 2021.

1 points

QUESTION 13

Mahta paid $2,800 in CFP dues in 2021. PRPLs policy is to reimburse 50 percent of such professional dues and Mahta was reimbursed accordingly in December of 2021.

2 points

QUESTION 14

Because of the need to invest some of her additional income, PRPL provided Mahta with financial counseling services. The value of these services was $2,362.