Prior to accepting employment with , had lived in Red Deer, Alberta. Once he had signed the contract with , plans were made to sell the house he owned in Red Deer. Unfortunately, the home remained unsold when he moved on March 8, . It was sold in late May for . He had purchased the home several years before for . Orrington Milo Orrington 2021 2021 $124,000 $149,000 He arrived in Ottawa on March 16 and moved into an apartment he had rented on a monthly basis until he could arrange to purchase a home. Rent payments were required from April 1. began work on April 1, , and eagerly awaited the arrival of his long-time girlfriend, , from Alberta. Shortly after her arrival in Ottawa, and were married on November 29, . had purchased a house just outside of Ottawa for that they moved into on December 1, . Milo 2021 June Moy Milo June 2021 Milo $232,000 2021 's new job requires him to meet with existing and prospective clients outside of regular office hours and, at times, on weekends. As a result, has agreed to sign form T2200 stating is required to pay for certain employment expenses without reimbursement and use a portion of his home for work. He has set aside a small room in his rented apartment that is used exclusively to meet with clientele. is also provided with an automobile to use in his employment duties. Milo Orrington Milo Milo is compensated by salary with a bonus and stock option arrangement. The bonus is based on overall company profits. The stock option is available to all employees depending upon level of service and overall job evaluation.

Given 's high grades at the University of Alberta, offered him to convince him to sign a five year employment contract. After he accepted, he received the cheque in February . During the period April 1, , through December 31, , he earned salary of . Of these earnings, was received in with the remainder received only in . The company withheld the following amounts from his salary. Milo Orrington $10,000 2021 2021 2021 $63,800 $62,750 2021 2022 Income Taxes $ 11,200 CPP 3,173 EI 920 RPP Contributions 1,300 Payment to Company For Personal Use of Automobile 400 2. On December 16, , a bonus of was accrued for . received of this bonus on December 21, , with the remainder being paid on February 17, . 2021 $7,750 Milo Milo $3,000 2021 2022 3. A few months into the new job became quite stressed. His employer suggested he take advantage of the company's employee assistance program. He went to four counselling appointments in October and November and felt much better. paid for 's counseling sessions. Milo Orrington $400 Milo 4. provides group medical coverage to all of its employees. The premiums paid by on 's behalf cost . Orrington Orrington Milo $440 5. Orrington contributed $1,100 on Milo's behalf to the company's RPP. 6. is a Certified Financial Planner and paid in professional dues in . policy is to reimburse % of such annual professional dues. Associates reimbursed in November . Milo $765 2021 Orrington 80 Orrington Milo $612 2021 7. When was married in November, he received non-cash wedding gifts valued at . Half of the amount was contributed by his employer and the balance was from other employees. Milo $750 8. Associates discovered years ago that many existing clients frequent certain recreational and sporting clubs. To encourage contacts with potential clients, employees have their choice among five such clubs. Since enjoys squash, he chose a free membership at a local squash club. The annual membership is . Orrington Milo $875 9/19/21, 9:00 PM Financial information https://www.mathxl.com/Student/PlayerTest.aspx?quizme=1&chapterId=3ionId=1&viewMode=0erwin=yes 2/3 9. Associates reimbursed for % of the ( ) loss that he experienced on the sale of his Red Deer home. Orrington Milo 80 $25,000 $149,000 $124,000 10. had for a down payment on his new Ottawa home. Since he had no previous work experience, the banks were reluctant to provide him a mortgage at favourable terms. His employer stepped in and agreed to give him an interest free housing loan of beginning on December 1, . agreed to reduce his salary slightly with respect to this benefit. The loan requires annual payments of due at the end of November beginning in . The loan is required to be paid if dies, sells the home, or terminates his employment. Assume that the prescribed interest rates for such benefits are 2% in each of the first two quarters of and 1% in the third and fourth quarters. Milo $36,000 $200,000 2021 Milo $7,300 2022 Milo 2021 11. instituted a stock option plan for its employees in . The plan eligibility requires three months of service. Employees are permitted to acquire a limited number of option shares at 20% below their fair market value on either May 1 or November 1 each year. The company hires valuators to determine the fair market value on those dates. acquires shares on November 1, , for . Low on cash and wanting to buy a nice wedding ring, he is forced to sell of the shares. He sells them on December 16, , for . Orrington 2020 Milo 200 2021 $12,900 June 80 2021 $8,930 12. has an arrangement with a local dealership to lease a minimum number of new automobiles each year at favourable rates. receives his leased automobile May 1, . It has kilometres on it when it is received. The odometer reads kilometres on December 31, . estimates that he drove kilometres for personal use, including drives to and from home to the office, and for employment purposes. Associates pays monthly lease payments (including HST) of . The cost of gas, oil, insurance, repairs and maintenance, and other charges total for . Associates requires each employee provided with an automobile to pay each month for the personal use of the automobile, which is withheld directly from their pay. Orrington Milo 2021 163 19,403 2021 Milo 5,176 14,064 Orrington $410 $2,185 2021 Orrington $75 9/19/21, 9:00 PM Financial information https://www.mathxl.com/Student/PlayerTest.aspx?quizme=1&chapterId=3ionId=1&viewMode=0erwin=yes 3/3 13. prepared a separate room in his apartment to be used exclusively for a home office. He used the office space between June 1 and November 30, . A home office was not ready in his newly purchased home until February . The apartment office space is exactly 100 square feet. The total apartment space is square feet. Home office-related costs are as follows. Milo 2021 2022 1,182 Monthly Rent $ 950 Monthly Phone Line Charge (April to November) 35 Employment-Related Long Distance Calls (June to November) 65 Total Electricity Charge (March 16 to November 30) 840 Property Insurance (March 16 to November 30) 185 Paint For Apartment 245 Office Furniture 1,350 Computer Purchase 1,705 Stationery And Office Supplies Purchased 113 14. received an allowance of per month for six months to cover the costs of maintaining an office in his home

Milo Lahey graduated from the University of Alberta in early 2021 at the age of 28. He immediately applied for a number of jobs and accepted a position as a financial planner in the Ottawa office of Orrington Associates Ltd. (Orrington). Orrington is a large Canadian controlled private corporation (CCPC) employing more than 200 people. (Click the icon to view additional information about his situation.) (Click the icon to view financial information.) Required Determine Milo's employment income for the 2021 taxation year. (Round your answer to the nearest dollar.) Find Milo's employment income. (Round to the nearest dollar.) Milo's employment income for the 2021 taxation year is s