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QUESTION 1 Jerry Farrow is employed by a Canadian controlled private corporation. In 2018, he was granted options to acquire 625 of his employer's shares

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QUESTION 1 Jerry Farrow is employed by a Canadian controlled private corporation. In 2018, he was granted options to acquire 625 of his employer's shares at $92 per share. At that time, it was estimated that the fair market value of the shares was $90. In 2019, when the estimated fair market value of the shares is $95 per share, he exercises all of these options. In 2020, he sells 125 of the shares for $85 per share. Indicate the tax consequences of the events in 2018, 2019 and 2020 on Mr. Farrow's Net Income For Tax Purposes and on his Taxable Income. Where relevant, identify these effects separately. 5 poin QUESTION 2 Deborah Ekert is employed as a salesperson and receives some of her compensation in the form of commissions. During the current year, her salary totaled $85,000 and her commissions totaled $8,400. Her employment related expenses during this period were as follows Capital Cost Allowance On Car $2850 Interest On Car Loan 1,075 Traveling Expenses 10,300 Promotion And Advertising 5,600 Client Entertainment.[(1/2(Actual Costs of $5,200)| 2,600 Total Available Deductions $22.425 "The car in uned exclusively for employment related activities Ms. Ekert meets the conditions for deducting employment income expenses. Given the preceding information, determine Ms. Ekart's minimum net employment income for the current year. Explain your conclusions QUESTION 1 Jerry Farrow is employed by a Canadian controlled private corporation. In 2018, he was granted options to acquire 625 of his employer's shares at $92 per share. At that time, it was estimated that the fair market value of the shares was $90. In 2019, when the estimated fair market value of the shares is $95 per share, he exercises all of these options. In 2020, he sells 125 of the shares for $85 per share. Indicate the tax consequences of the events in 2018, 2019 and 2020 on Mr. Farrow's Net Income For Tax Purposes and on his Taxable Income. Where relevant, identify these effects separately. 5 poin QUESTION 2 Deborah Ekert is employed as a salesperson and receives some of her compensation in the form of commissions. During the current year, her salary totaled $85,000 and her commissions totaled $8,400. Her employment related expenses during this period were as follows Capital Cost Allowance On Car $2850 Interest On Car Loan 1,075 Traveling Expenses 10,300 Promotion And Advertising 5,600 Client Entertainment.[(1/2(Actual Costs of $5,200)| 2,600 Total Available Deductions $22.425 "The car in uned exclusively for employment related activities Ms. Ekert meets the conditions for deducting employment income expenses. Given the preceding information, determine Ms. Ekart's minimum net employment income for the current year. Explain your conclusions

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