Peter, who is a salesman in Regina, has incurred the following expenses in connection with his employment in 2019. He was not reimbursed and did not receive an allowance in respect of any of these expenses. Peter has a Form T2200, signed by his employer attesting to all of these expenses.

(1)Peter uses one room in his home exclusively as a home office. He uses his home office most days and evenings to do paperwork and make phone calls and his home office computer is connected to his employer's computer system. He visits his office at his employer's premises approximately once a week and spends the remainder of the time on the road, making sales calls throughout Western Canada.

(2)The following expenses relate to Peter's home office which occupies 10% of the square footage of his house:

oUtilities - $3,100

oMortgage Interest - $12,000

oHouse Insurance - $1,150

oMunicipal Taxes - $3,050

oMaintenance and Repairs - $2,700

oTotal - $22,000

o10% of total - $2,200

oCCA on computer equipment - $1,035

oRental of photocopier - $1,200

oOffice supplies - $750

oCell phone charges (empl. portion) - $700

oLong distance calls related to business - $1,000

(3)Peter also has the following promotional expenses

oMeals (with clients, Peter's portion) - $2,000

oClient's Meals - $2,100

oTheatre tickets - $1,200

oPromotional gifts - $1,300

oCountry club membership - $3,200

(4)Peter paid the following auto expenses:

oGas and Oil - $2,000

oInsurance - $1,100

oLicense - $90

oRepairs - $800

oParking (empl. related) - $320

oPeter purchased the car that he uses for employment purposes on Aug. 1, 2018 for $50,000 plus $2,500 GST and $2,500 PST. Peter did not claim CCA on the car in 2018; therefore, the capital cost allowance rate for the car is 30% in 2019. The care was driven a total of 40,000 km in 2019, 32,000 of the km driven related to Peter's employment use.

(5)Peter also incurred the following travel expenses (while away at least 12 hours):

oAirfare - $4,520

oMeals and accommodation (included $2,400 for meals) - $4,960

oRegistration fees for convention in Vancouver to increase product knowledge - $800

oOut-of-town entertainment - $3,200

(6)Interest on bank loan:

oTo buy computer equipment for the home office in (1) above - $320

oTo buy the car in (4) above - $800

(7)Peter's remuneration from employment is as follows:

oSalary - $40,000

oBonus based on company sales - $35,000

(8)GST is 5% and PST is 5%

Peter has asked you to calculate his income and expenses assuming he is an employee and assuming he is self-employed. present him with the results with two columns.