Please view the following Introduction to Federal Income Taxation in Canada assignments and help, thank you.

2. 2. Erin is an employee of TDROM Inc, a public company. In 2014, her compensation package was as follows: Gross salary 59,000 Payroll deductions: Employee contribution to a registered pension plan (3,000) Charitable donations (55) Canadian Pension Plan contributions (2,426) Employment Insurance contributions (914) Net pay received 52,605 Noncash perks: Employer contribution to a registered pension plan 3,500 Private dental plan 800 Mandatory employerpaid provincial health tax 450 Reimbursement of moving expenses for relocating from Edmonton 900 Club membership (for company promotion) 1,800 Suppliers prize for outstanding employee sales (Hawaii golf trip) 6,000 Bonus declared but not paid 2,000 Hard hat and safety glasses 450 The company states that club memberships should be used for business promotion. TDROM also offered Erin a stock option to purchase 1,000 corporate shares at $12 a share. On June 4, 2014 she exercised that option. As of December 31, 2014, Erin had not disposed of the shares. February 1, 2007 FMV Grant date 11 (X 1000 = 11000) June 4, 2014 FMV Exercise date 19 (X 1000 = 19000) December 31, 2014 FMV 16 (X 1000 = 16000) Erin has asked you to calculate her income from employment for income tax purposes. 2. 3. Three senior executives are renewing their employment contracts with Global Consulting Ltd, a public corporation. The corporation has provided each of them with the following alternative compensation plans for 2015 in addition to the $145,000 base salary each receives: (a) A cash raise of $5,000 in 2015. (b) A bonus of $5,500 payable in 2016. (c) Use of the company condo in Hawaii for two weeks, values at $3,000. (d) A stock option arrangement to purchase 1,000 shares of Global Consulting, a public company, this month (December 2014). Today's FMV of the shares is $5 and the option price would be $3.50 per share. Management anticipates the share price in December 2015 will be $6.50. The senior executives have asked you to analyze the various alternatives and provide a recommendation. You agreed to assume a marginal tax rate of 45%. 2. 4. On September 1, Maria Battelio, a Calgary resident, commenced work as an investment dealer with Top Investments Corporation. Prior to September, Maria was a fourthyear commerce student at the University of Edmonton. Maria contract of employment required that she use her own car and insure the necessary expenses to earn commission income. Maria purchased her car on September 1 for $21,000. Top Investments Corporation lent her the $21,000 for the car and she agreed to repay them $7,000 annually, without interest, on December 31 of each year. Assume that Maria's deductible capital cost allowance (net personal use) on her automobile is $2,000. Total distance travelled from September 1 to December 31 Total km driven 12,500 Personal km driven 5,000 Maria received the following net pay in the year: Gross salary $ 4,000 Commissions $18,000 Christmas bonus $300 Employment Insurance contributions ($419) Canada Pension Plan contributions ($931) Charitable donations ($280) Income tax withheld at source ($4,200) Net pay $16,470 To earn commission income, Maria incurred the following: Meals and entertainment $2,300 Client promotion materials $1,500 Gasoline and operating expenses $1,600 Total $5,400 Top Investment paid for the airfare and accommodation for Maria and her spouse to attend a conference in New York. The trip cost $800 for each person attending the conference. The company also pays premiums of $400 per employee for group life insurance with coverage of $100,000. Assume a 7% prescribed rate of interest on the employee loan. Maria would like you to calculate her income from employment. Ignore the effects of any leap year. 2. Marty started a selfemployed bakery business in a North Bay warehouse on March 1, and he has selected a fiscal year end of December 31. His business includes the baking and delivery of muffins and bagels to various coffee shops throughout the city. (a) On March 1, Marty purchased a large gas oven, a computerized blender, and a used van for his business. Marty only used the van for deliveries. Assume the deductible CCA on this equipment is $2,400. (b) Uncollectible bad debts are from Jo Jo's coffee shop. The owner has declared bankruptcy and the business closed on September 15. (c) Meals and entertainment expenses were incurred in the attempt to gain new business with several coffee shops. (d) Diane, Marty's spouse, worked fulltime for Marty overseeing hiring, orders and deliver of all goods. Marty has asked you to calculate his income from a business for tax purposes for the calendar year, ending December 31. Ma Bagels Statement of Income For the period March 1 to December 31 Gross Revenue Cost of Goods Sold Gross Profit Expenses: $340,000 (190,000) $150,000 Accountin g amortizati on (Note a) Repairs and maintenan ce Annual tennis club dues Uncollecti ble bad 4,000 2,800 2,500 4,200 debt (Note b) Political donations Charitable donations Hotel and travel Meals and entertainm ent (Note c) Building rent Salary to Spouse 1,000 8,000 7,800 3,400 12,000 40,000 Cash Outflow (85,700) $64,300 3. Traci works evenings and weekends as a computer consultant. Weekdays she is employed fulltime as a network administrator with Jimac Distributors Ltd., a Canadian controlled private corporation. Traci has an office organized for her consulting business in her fourroom condominium where she takes care of paperwork as well as the assembly and repair of computers. This room is the smallest in the condominium taking up only 50m of the 400m total space. The following information was provided by Traci: Receipts for condo fees $1,800 Mortgage interest $5,250 Receipts for utilities $800 Telephone bills $600 Deductible CCA on computer equipment used for diagnostic purposes $1,500 The telephone is used personally and for business. Long distance bills for business total $250. All consulting revenues are deposited into her personal account but she keeps a record in her consulting journal. All payments for supplies are paid out of her personal bank account. She provided you with the following information from her chequebook. Money received for consulting services $35,000 Cheques issued: CompWorld for parts $18,000 Computer Association $50 Savoir Faire cocktail party for clients $300 Future Shop for a television and DVD player $200 Straw Warehouse for living room furniture $5,500 Computer World magazine subscription $80 (a) By looking at Traci's last year tax return, you notice she claimed a reserve for $500 for amounts not collected. This year, $1,200 is outstanding on doubt customers' accounts. Traci's records indicate that she was unable to collect $300 for jobs completed last year. (b) At the beginning of the year, Traci had $1,500 worth of parts. At the end of the year, she held an inventory of SIMMS that had dropped drastically in price, while the original cost was $2,000, the replacement cost is only $1,200. (c) Traci often travels to a customers place of business to provide training, installation and Home Page design services. Traci uses her own car and charges the customer an extra $50 (included in consulting services) for the onsite service. Assume that Traci's capital cost allowance is $600. Traci kept track of her receipts and the km she drove during the calendar year. Total km driven 15,000 Km for business 4,500 Gas and oil $1,500 Repairs (tires and muffler) $350 Traci would like you to calculate her income from business for tax purposes. 3. On February 1, Wynn, a recent commerce graduate, began a selfemployed, unincorporated coffee business, Chinos and Beanos Unlimited. Wynn would like assistance preparing his 2014 tax return. He has prepared a brief, unaudited statement of income. Wynn also supplied the following additional information: (a) Wynn used his personal automobile for all business travel. The $2,350 represents his total expenses for the 12month period. His travel log included business mileage of 14,400 km; the total number of km driven during the 12month period totalled 18,000 km. (b) Wynn would like to deduct all of his nanny expenses against his income since the expenses were incurred to earn income. (c) There are no unrecorded revenues. However, Wynn feels that $380 of his accounts receivable balance is uncollected because the customers recently declared bankruptcy. Wynn did not provide for this bad debt expense in his financial statements. (d) The structural renovation of the coffee shop included new walls, flooring, an office for Wynn and a kitchen. (e) To ease the burden of being a single parent, Wynn set up a home office. Wynn uses the office to complete his administrative work in the evenings. The home office expenses relate to a proportion of heat, light and power. Wynn would like you to calculate his net income from a business for tax purpose, ignoring CCA