QUESTION TWO Mr. Lawrence Harvey has lived and worked in Halifax for most of his adult life. In July, 2020, he discovers that his wife of many years has been having an affair with both his father and his brother. He immediately begins divorce proceedings and submits a request to his employer for a transfer away from Halifax. As he has skills that are uniquely valuable to his employer, the employer wishes to comply. After considering alternative locations, Lawrence and his employer agree on a move to the company's main office in Ottawa. Lawrence will begin working in that location at the beginning of December, 2020. Lawrence's salary is $8,000 per month, with the first 11 months of 2020 being paid by the Halifax office, the remaining one month being paid by the Ottawa office. As part of the uncontested divorce settlement, Lawrence receives the family residence. During October, 2020, it is sold for $435,000. As he was anxious to sell quickly, there is a loss of the sale of $52,000. Costs associated with the sale are as follows: Real Estate Commissions Legal Fees Unpaid Property Taxes To Date Of Sale Cost Of Cleaning And Minor Repairs Prior To Sale $21,000 800 1,500 3,800 In October, 2020, Lawrence flies to Ottawa to locate suitable housing. As he is now living alone, he decides to lease a condominium. After 2 days, he finds a suitable property which he leases for $2,500 per month, beginning November 1. He remains in Ottawa for an additional 4 days in order to find furnishings for the rental unit. The costs associated with this trip are as follows: Air Fare - Return Rental Car Costs (6 Days) Hotel (6 Nights At $200) Food (6 Days - Total) $1,250 420 1,200 510 His employer has agreed to the following to provide assistance with the move: They will provide him with an $18,000 allowance to cover his general moving costs. They will compensate him, to the extent of $30,000, for the loss on the sale of his Halifax home. All of these amounts will be paid by the Ottawa office during December, 2020. On November 7, Lawrence leaves for Ottawa by air. Because the acquired furnishings have not been delivered yet, he has to live in an Ottawa hotel until November 25. His expenses for the period November 7 through November 25 are as follows: $ 600 3,040 Air Fare - One Way Hotel Room With Kitchenette (19 Nights At $160) Food (19 Days - Total Including Groceries For Cooking In Hotel) 660 He contracts a car moving company to transport his car to Ottawa and it is delivered on November 8. The cost for this service is $1,100. A moving company takes care of moving Lawrence's personal belongings to Ottawa. The invoice for this service is $3,500. In addition, there is a $1,200 charge for storing these belongings until the Ottawa condominium becomes available. Lawrence begins working in Ottawa on December 1. He would like to take the maximum moving expense deduction for 2020. Lawrence will use the simplified method of determining food costs in calculating his moving expenses. Assume that the flat rate for meals is $51 per day. Required: Determine the amount of Lawrence's maximum 2020 deduction for moving expenses. In addition, indicate the amount of any carry forward that is available at the end of the year