On January 2, 2019, Sheldon Bass, a professional engineer, moved from Calgary to Edmonton to commence employment with Acco Ltd., a large public corporation. Because of his new employment contract, Bass requires assistance in determining his employment income for tax purposes. He has provided the following financial information:

Basss salary in 2019 was $95,000. From this, Acco deducted Employment Insurance premiums of $860, Canada Pension Plan contributions of $2,749, registered pension plan payments of $6,000, Group Disabiity Insurance premiums of $340 (this is an income protection insurance plan), and charitable donations of $1,200 as well as income tax in the amount of $32,000. Acco also deducted $3,400 in registered pension plan contributions on behalf of Bass. (In other words, Bass paid all of these amounts.)

During 2019, Bass was off work due to sickness for 4 months. He received $3,000 per month (n in addition to his salary) for each of these months as benefits from the Group Disability Insurance plan. His total payments on premiums to that plan since he started work with Acco is $340.

Acco provides its executives with a bonus plan. Basss 2019 bonus was $20,000, of which $5,000 was received in December 2019 and the balance in March 2020.

In November 2019, Bass asked his employer to loan him $12,000 so that he could acquire an investment. Acco advised him that it was company policy not to make loans to employees. However, they gave him the $12,000, stipulating that it was an advance against his 2020 salary, which would be reduced accordingly.

In 2019, Bass was provided with a company car, which he drove 14,000 km for employment duties and 8,000 km for personal use. The car was leased at $500 per month. The total operating costs for the car for the year of $7,000 were paid by Acco. The car was available for personal use throughout the year.

Basss moving expenses to transport his belongings to Edmonton were $3,000. Acco paid this cost directly to a moving company on Basss behalf. Acco also provided Bass with a travel allowance of $3,400.

Bass travels extensively for Acco. In December 2019, he and his spouse used some of the travel points he had accumulated from this travel to attend his fathers funeral in Toronto. As a result, he saved the normal airfare of $400 per ticket. In addition, Bass incurred business travel costs on behalf of Acco. He is required by his contract of employment to pay these costs. He paid $3,700 for train and bus tickets, and $3,900 for hotel accommodations.

Acco paid the following additional amounts for Bass:

Allowance ($300 per month) for acquiring executive apparel $3,600

Investment counsellor fees as part of Accos counselling program 600

Golf club dues (Bass loves golf and plays regularly) 1,500

In 2019 Bass paid for the following:

Dues to the engineers association $ 800

Custom made suits and shoes $1,260

In 2019, Arco paid $140 in group private health plan premiums on behalf of Bass. Arco also paid $340 in premiums for the Group Disability insurance plan for Bass and $75 in group life insurance premiums on behalf of Bass.

Questions:

1. Your firm has been hired to assist Sheldon and your partner has asked that you to determine Sheldons Division B employment income for tax purposes for 2019. Be sure to show all calculations, whether or not necessary to the final answer. Make sure that your schedules are clear and legible.
2. For any amounts above that you did not include in Employment income, in point form, indicate and explain why you did not include any of the above amounts in your calculation of employment income.