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Question 4-(3 marks - Show calculations) - You work as a sales representative for a company and earn $10,000 in commissions during 2020. Your
Question 4-(3 marks - Show calculations) - You work as a sales representative for a company and earn $10,000 in commissions during 2020. Your home office is in a 375 square foot den. Your house is 1,500 square feet. How much are you allowed to deduct if your total costs for 2020 were as follows: Mortgage payments (40% principal, 60% interest) $24,000 Home insurance Office supplies Utilities Internet Roof repair Property tax Long distance telephone-work related 900 375 1,500 750 800 5,000 250 A) $2,675. B) $3,600. C) $5,075. D) $1,475. E) $1,827. Question 5-(3 marks - show calculations) You were hired as a commissioned salesman in July 2020. You received a salary of $60,000, and $5,000 of commissions. $6,000 of commissions you earned in December will be paid in January 2021. Because you travel to negotiate sales contracts, you pay your own vehicle and promotional expenses. Your employer has signed a Form T2200 and certified that no reimbursements were paid. You incurred the following expenses from July through December 2020: Meals and entertainment for potential customers Driving costs (90% of driving was for employment purposes): Fuel Insurance Repairs Leasing costs ($500 per month) $20,000 4,000 750 2,250 3,000 What is the maximum deduction you can claim under ITA 8 for employment expenses? A) $5,000. B) $9,000. C) $11,000. D.) 16000
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