Peter moved from Manitoba to Nova Scotia in 2020, as a result of a promotion by his employer to open a new branch. When he sold his house in Manitoba he incurred a loss of $100,000 on the sale. Peter's employer decided to reimburse him for the housing loss of $100,000 in 2020. Which of the following amounts represent the increase to Peter's employment income in 2020 as a result of this reimbursement? (Show Calculations) (a) No change to employment income (b) $42,500 added to employment income (c) $15,000 added to employment income (d) $100,000 added to employment income Part 1 (ITA 3) Division B Net Income to Division C Taxable income to Taxes Payable for Individuals + Bin #1 - Net Employment - losses carry forward 20 years and carry back 3 years (carrying baskets) + Bin #2 - Net Business & Property - losses carry forward 20 years and carry back 3 years (carrying baskets) ITA 3(a) + Bin #4 - Other Income ITA 3 (b) ITA 3 (c) + Bin #3 - Net Capital - losses carry forward for infinity and carry back 3 years (carrying basket) Bin #5 - Other Deductions = Sources of Income ITA 3 (d) Losses in current year from Bins 1, 2,4 = Division B Net Income ITA 110 Equivalent to Capital Gains Deduction for Employee Stock Options Payments included to calculation Division B but not included for Division C(e.g. social assistance) Losses from other years (carrying baskets Bin #1 & 2) Losses from other years (carrying basket Bin #3 limited to Net Capital Income included in ITA 3 (b)) ITA 111 = Division C Taxable Income X Applicable Tax Rates ITA 118 Tax Credits = Division E Taxes Payable for Individuals