Rishma, a good friend from your university days, has just left your office. She remembered that you have specialized in tax and has come to you for advice an offer of employment that she has received. Motion Tech Inc., a public company, has offered her the position of VP of Human Resource. Motion Tech has a year end of November 30th. Her start date is one month from now.

She has made the following list of items that are included in the package and would like your advice on the tax consequences of each:

1. A salary of $90,000 per year, payable by direct deposit on the last day of each month.

2. A bonus payable based on the year-end results of the company. The bonus would be up to $10,000.

3. Motion Tech has a defined contribution registered pension plan where Rishma and the company each contribute 6% of her salary.

4. Since she will have to move to Waterloo to take up this position, the company will pay her an allowance of $15,000 to cover her moving expenses.

5. Motion Tech will cover the annual dues for a fitness club up to a cost of $2,000 per year.

6. The company will pay for Rishma to have her personal tax return prepared at a cost of up to $,1000.