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Question 2 - calculating employment expenses 10 marks You have been provided with the following information from your taxpayer. Mr. B works in company ABC

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Question 2 - calculating employment expenses 10 marks You have been provided with the following information from your taxpayer. Mr. B works in company ABC Ltd He is required to use his own car and incur the necessary expenses to earn commission income. Mr. B purchased a car on july 1, 2020 for $35,000 {including HST}. The CCA on the vehicle is $2,000. Total km = 20,000: personal km 4,000 Total commission received in 2020: $17,500 Mr. B incurred the following expenses to earn commission income: Meals and entertainment: $13,300 Client promotional material: $12,500 Gasoline and operating expenses: $5,?00 Required: Calculate the total eligible expenses for Mr. E for 2020. Explain whether Mr. E has options in terms of which section (in s.3{1}} he can deduct employment expenses and what conditions are needed for each one. I would suggest preparing your calculation in excel {do not copy and paste in word). Use supporting notes (1,2, 3, or a, b, c, etc.) for the following: . Support each deduction or each amount that is not eligible to be deducted. - When supporting your items ensure you are specic as to whether the item is from the ITA or from a CRA Administrative document (Le. Folio or Guide)

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