On June 1, 2019, with the business running itself, Michelle decided to accept a job offer from I.M. Canadian Inc., a Canadian public corporation. Michelle is employed as a salesperson. Details of the 2019 T4 are as follows:

Gross earnings $ 35,000.00 (box 14)

Commissions (included in gross earnings) 2,500.00 (box 42)

CPP contributions withheld 1,559.25 (box 16)

EI premiums withheld 658.00 (box 18)

Income tax withheld 8,750.00 (box 22)

RPP contributions 1,250.00 (box 20)

Pension adjustment 2,468.00 (box 52)

The payroll clerk for I.M. Canadian Inc., neglected to include any taxable benefits in the gross earnings figure on the T4. However, Michelle has provided you with the following information:

(a) The company provided a vehicle to Michelle for both business and personal use. The company leases this vehicle at a cost of $548 per month, which includes a monthly insurance premium of $48. During the seven-month period from June 1, 2019 to December 31, 2019, Michelle drove the vehicle 7,500 kilometers of which 5,625 kilometers were for business use. The total operating costs for the vehicle were $2,100, ALL of which were paid by Michelle. Because Michelle paid all of these costs, the company gave her a vehicle allowance of $150 per month.

(b) On August 1, 2019, the company granted a stock option to Michelle for the purchase of 500 common shares of the company @ $30 per share. At this time the shares were trading @ $30 per share. On September 1, 2019, Michelle exercised the option and purchased all of the 500 common shares. At this time the shares were trading @ $45 per share.

(c) On September 1, 2019, the company issued a loan to Michelle for the full amount of the purchase price of the shares in (b). Interest is payable at a rate of % on each anniversary date of the loan, commencing in 2020. Michelle made monthly payments on account of principal only as follows:

October 1, 2019 $200

November 1, 2019 $200

December 1, 2019 $200

In addition to paying the vehicle operating costs, Michelle is also required to pay other expenses to earn commission income. She paid the following amounts in 2019:

Air fares $1,200

Accommodations 1,680

Meals (while out of town) 640

Advertising and promotion 850

Bonding insurance premiums 175

(d) In September 2019, Michelle was required by the company to attend a training seminar in Vancouver, B.C. The company agreed to pay the costs for both Michelle and her husband to attend. The total costs for this trip were $3,500 of which $1,550 was for her husband.

(e) As a condition of her employment, Michelle is required to work out of her home. The total house expenses for 2019 (12 months) were as follows:

Mortgage interest $4,400

Mortgage principal 3,600

Property taxes 2,500

Heat and hydro 2,900

Insurance 650

Michelles office occupies approximately 400 square feet of the 2,000 total square feet of the house

(f) Michelle received a HST rebate on her 2018 income tax return in the amount of $1,229.24. This should be included on line 104 of her 2019 income tax return the software will enter this for you. .