Question $23(12$ 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 $2023,$ his gross salary was $$82,000.$ In addition, Kishen

was awarded a performance bonus of $$12,000$ for $2023$ of which $$8,000$ was paid on December ${28}^{th},2023,$

and the remainder $$4,000$ was paid on February $1,2024.$

Other Information: The following items are relevant for $2023$ :

Kishen's employer withheld the following amounts from his gross wages:

Federal & provincial income tax $$16,500$

El premiums $$1,002$

CPP Contributions $$3,754$

United Way donations $$215$

RPP contributions $$3,500$

Payments for personal use of

company auto $$800$

During the year, Kishen was provided with an automobile that the company leases at a monthly

rate of $$645,$ including both GST & PST$.$ The company pays for all the operating expenses of the

automobile, which amounted to $$3,275$ in $2023.$ Kishen drove the automobile for a total of $30,000$

kilometers during the year of which $25,000$ kilometers was for employment purposes and $5,000$ 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 $5-$year home

purchase loan of $$215,000$ on August $1,2023,$ at an interest rate of $4\%.$ Assume that at the time the

loan was granted and throughout the remainder of the year, the relevant prescribed interest rate

was $6\%.$

On July $25,2023,$ Kishen exercised his stock options to buy $600$ shares of his employer's common

shares at an option price of $$15$ per share, the shares had a fair market value of $$20$ per share.

When the options were granted in April $2022,$ the shares had a fair market value of $$12$ per share.

In November $2023,$ Kishen sold the shares at $$25$ per share.

In $2023$ Kishen received a $$225$ Costco Gift card from his employer in recognition of his $10$ years of

service.

Required: $($show all calculations$).$

Calculate Kishen's minimum $2023$ employment income. Provide reasons for omitting items you have not

included in employment income. Ignore GST$/$HST & PST considerations.