Problem 2: Chapter 3 Instructions:

1. Johnathan is an accountant who works for Reading Railroad Ltd, which is a public company. He earns $80000 in wages during the 2022 year. His employer withheld $3,500 of CPP from his paycheques, $953 of EI, and $12,000 of income tax, so that he only received $63,547.00 cash throughout the year.

2. Johnathan moved during the year for work. It was an eligible relocation. His employer reimbursed the loss on the sale of his old residence. The amount of the loss reimbursement was $70000.

3. Johnathan was provided a private health care plan for his family. The employer paid $4000 of premiums for this plan. He also earned a cash bonus of $800 for being the hardest working employee during the year. Additionally, he received a large painting as a Christmas present from his employer, which has a value of $1250.

4. Johnathan went on a work trip to Florida to go to several conferences. His trip was 100% for employment purposes. He also brought his spouse and daughter along, and the two of them enjoyed going to the beach in Florida for several days while Johnathan attended his conferences. Johnathan's employer paid for the plane tickets for all three of them, which cost $1300 each.

5. Johnathan wanted to improve his skillset and requested that his employer pay for him to take several courses. His employer paid for him to take a bookkeeping/accounting course for $1,500. Additionally, Johnathan is very interested in starting a side hustle as an Instragram Influencer. Despite this course having nothing to do with his current position, his employer also agreed to pay for him to take an Instagram Influencer Marketing 101 course to reward him for all his hard work, since Johnathan had a personal interest in it. The tuition cost $950.

6. Johnathan sometimes was not very fashionable, so his employer decided to improve his wardrobe by providing him with several new suit jackets. The employer was hoping Johnathan would wear these to work, but Johnathan could also use these jackets for personal purposes as well, since they were not distinctive uniforms specific to his place of work. The employer thought this would help him appear more professional to clients at work. The three suit jackets were valued at $700 total.

7. Johnathan was also provided with an employer-owned automobile. The vehicle was available to him throughout the year. He drove the vehicle 30,000 kilometres this year, 4000 kilometres of which were for employment purposes. The vehicle was purchased in 2016 for $55000, plus $7150 HST. His employer also pays for all of the vehicle operating costs, which totalled $16,000 this year.

8. In 2017, Johnathan was granted stock options from his employer to buy 1000 of his employer's shares at a price of $30 per share. On the grant date, the shares were trading at $50 per share. In November 2022, he exercises all of the options when the shares are trading at $100 per share. He still owns all of these shares at the end of 2022.

9. Reading Railroad Ltd. contributed $8000 to Johnathan's Defined Contributed Registered Pension Plan (RPP) during the year. In accordance with his pension plan agreement, Johnathan contributed $4000 to his own RPP during the year, as well.

Required: Compute Johnathan's 2022 net employment income. Answer on the "P2- Response" tab, in the yellow boxes. Show any additional work in the green space indicated on the "P2- Response" tab.