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Question 2 3 ( 1 2 points ) Kishen Nan has been employed for many years as a designer in Aurora, Ontario. Kishen's employer is
Question points Kishen Nan has been employed for many years as a designer in Aurora, Ontario. Kishen's employer is a Canadian Controlled Private Corporation CCPC In his gross salary was $ In addition, Kishen was awarded a performance bonus of $ for of which $ was paid on December and the remainder $ was paid on February Other Information: The following items are relevant for : Kishen's employer withheld the following amounts from his gross wages: Federal & provincial income tax $ El premiums $ CPP Contributions $ United Way donations $ RPP contributions $ Payments for personal use of company auto $ During the year, Kishen was provided with an automobile that the company leases at a monthly rate of $ including both GST & PST The company pays for all the operating expenses of the automobile, which amounted to $ in Kishen drove the automobile for a total of kilometers during the year of which kilometers was for employment purposes and for personal use. Kishen used the vehicle for the entire year. In order to assist Kishen with purchasing a new home, the company granted him a year home purchase loan of $ on August at an interest rate of Assume that at the time the loan was granted and throughout the remainder of the year, the relevant prescribed interest rate was On July Kishen exercised his stock options to buy shares of his employer's common shares at an option price of $ per share, the shares had a fair market value of $ per share. When the options were granted in April the shares had a fair market value of $ per share. In November Kishen sold the shares at $ per share. In Kishen received a $ Costco Gift card from his employer in recognition of his years of service. Required: show all calculations Calculate Kishen's minimum employment income. Provide reasons for omitting items you have not included in employment income. Ignore GSTHST & PST considerations.
Question points
Kishen Nan has been employed for many years as a designer in Aurora, Ontario. Kishen's employer is a
Canadian Controlled Private Corporation CCPC In his gross salary was $ In addition, Kishen
was awarded a performance bonus of $ for of which $ was paid on December
and the remainder $ was paid on February
Other Information: The following items are relevant for :
Kishen's employer withheld the following amounts from his gross wages:
Federal & provincial income tax $
El premiums $
CPP Contributions $
United Way donations $
RPP contributions $
Payments for personal use of
company auto $
During the year, Kishen was provided with an automobile that the company leases at a monthly
rate of $ including both GST & PST The company pays for all the operating expenses of the
automobile, which amounted to $ in Kishen drove the automobile for a total of
kilometers during the year of which kilometers was for employment purposes and for
personal use. Kishen used the vehicle for the entire year.
In order to assist Kishen with purchasing a new home, the company granted him a year home
purchase loan of $ on August at an interest rate of Assume that at the time the
loan was granted and throughout the remainder of the year, the relevant prescribed interest rate
was
On July Kishen exercised his stock options to buy shares of his employer's common
shares at an option price of $ per share, the shares had a fair market value of $ per share.
When the options were granted in April the shares had a fair market value of $ per share.
In November Kishen sold the shares at $ per share.
In Kishen received a $ Costco Gift card from his employer in recognition of his years of
service.
Required: show all calculations
Calculate Kishen's minimum employment income. Provide reasons for omitting items you have not
included in employment income. Ignore GSTHST & PST considerations.
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