$.$Ms X is employed by a Canadian public corporation as a middle level manager. Information relating to

her financial affairs for a particular year is outlined below.

$1.$ Ms X received a salary of $$40000$ during the year. In addition, she has awarded a bonus of $$5000$for her

special efforts during the current year. The payment is to be made in two installments during the

following year.

$2.$ Two years earlier, the employer had granted Ms$.$X an option to acquire $500$ shares of public corporation at

$$30$ per share. At the time the option was granted, the shares were trading at $$32$ each. During the early

part of the current year Ms$.$X exercised the option and acquired $500$ shares. Which at that time had a

value of $$35$ per share? I December of the current year, after their value rose unexpectedly, she sold them

at $$41$ a share.

$3.$ The company had a generous benefit program and, during the year, provided Ms$.$ X with the following

$$ A contribution to the company pension plan of $$3300$

$$ A group term life insurance premium of $$500$ for $$50000$ of the life insurance for the

beneficiaries of her estate.

$$ A membership valued at $$1000$ in a private squash club, to which many of the employer$$s

customers belonged.

$$ A company car for personal use throughout the year. $($The car costs the company $$20000,$

including tax: during the year, the company paid $$5000$of operating expenses. The car has

driven a total of $20000$ km$,$ of which $11000$ were for personal use$)$

$$ A gift costing $$600($including tax$)$ in honour of Ms X $20$th wedding anniversary. She also

received a watch costing $$400($including tax$)$ as an award for $10$ years of service with the

employer.

$4.$ During the year Ms$.$ X made the following payments, some of them were deducted directly from her

monthly salary by the employer and paid on her behalf: Employment insurance $$720,$ Canada pension

plan $$1807,$ donations to registered charities $$200,$ income tax $$8000,$ contribution to company$$s RPP

$$3000$ and interest to the employer of $3\%$ on a $$10000$ loan $($the CRA$$s prescribed interest rate was $5\%)$

$$300.$

$5.$ The contract of employment required that Ms X acquire, at her own expense a small laptop computer to

be used while travelling and at home. During the year, she purchased a laptop computer for $$2000$; she

also purchased and used $$75$ worth of special computer paper.

$6.$ From time to time, Ms X travelled out of town on behalf of the employer. For this reason, the company

provided her with a monthly travel allowance of $$500,$ which she was not required to account for. During

the year she spent $$2000$ on airline tickets, $4500$ on meals, and $$1000$ on lodging. This year$$s travel

expenses were similar to amounts spent in previous years.

$7.$ Over several weekends during the year Ms$.$X completed a consulting project for her brother$-$in$-$law$$s

business, for which she received $$3000.$ Compute the net employment income of Ms$.$x

$4$