Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 2 pts Tim began employment as a commissioned salesperson in July of this year and received a base salary of $60,000 and

image text in transcribed

Question 1 2 pts Tim began employment as a commissioned salesperson in July of this year and received a base salary of $60,000 and $7,000 in commissions based on sales for the year. During the year, Tim worked away from the office negotiating sales contracts. Tim is required to pay his own travelling expenses and his employer has signed a T2200 form certifying that requirement and certifying that no reimbursements are paid for any expenses Tim incurs to earn commissions. Tim incurred the following work-related costs from July through December of this year and all expenses are reasonable: Meals and entertainment for potential customers...... $14,000 Automobile costs (90% of the following amounts were for employment purposes based on kilometres driven): Fuel Insurance 4,000 3,500 Repairs 4,250 Leasing costs as allowed under Tax Act 4,500 What is the maximum deduction Tim may claim for employment expenses for the year?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

13th edition

978-1285866307

Students also viewed these Accounting questions