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 $20,000

Driving costs (90% of driving was for employment purposes):

Fuel 4,000

Insurance 750

Repairs 2,250

Leasing costs ($500 per month) 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) $16,000.

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