Question
On September 1 st , 2018, Mr. Payton moves from Sudbury to Ottawa (Ottawa is 484 kilometers from Sudbury) for a new job. He lived
On September 1st, 2018, Mr. Payton moves from Sudbury to Ottawa (Ottawa is 484 kilometers from Sudbury) for a new job.
He lived in a rented apartment in Sudbury and purchased a house in Ottawa.
The total cost of the actual move, including the costs of moving his personal possessions, was $16,500.
He paid $500 to the cleaners to clean the rented home and hand it over to the landlord as per his tenancy contract.
He spent $750 on a house hunting trip to Ottawa, but he did not decide on a house until his return to Sudbury.
He also incurred a $2,000 penalty for breaking his lease in Sudbury.
He also incurred $150 of mail forwarding cost to his new address.
He also paid $200 expenses for various utilities connections at his new address in Ottawa.
During the year, his salary totaled $60,000, of which $45,000 was earned in Sudbury and the remaining $15,000 was earned in Ottawa.
As Payton is hired at a junior level, his new employer is not reimbursing any of the moving expenses.
For each question, if the answer is yes, how much?
1 Should the total cost of actual move,including cost of moving personal possessions be deducted?
2 Should the cleaning fees be deducted?
3 Should house hunting trip expenses be deducted?
4 Should lease breaking penalty be deducted?
5 Should mail forwarding fees be deducted?
6 Should utlities connections fees be deducted?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started