Rose Lee, Vice-President of Joel Inc., has asked for your assistance concerning the tax implications of certain amounts and benefits she received from her employer during 2021.

Salary, gross ....................................................................................... $ 70,000 Payroll deductions:

Income taxes ................................................................. $36,000

Canada Pension Plan premiums ....................................... 3,166

Employment Insurance premiums ....................................... 890

Group accident disability insurance premiums ................... 110 (40,166)

Net pay ................................................................................................ $49,834

Additional Information

(1) As the present, Rose has made several strategic decisions. It has brought three big contracts. Thus, the annual sale has been increased 20% (compared to previous year's 15% and industry average 12%). Based on Joel Inc compensation agreement, Rose received $15,000 bonus for the achievement.

(2) Joel Inc. contributes half of the Group life insurance for Rose. Employer portion is $150 per month.

(3) In November 2021, Rose was in a skiing accident and was unable to work for four weeks. During this period she received disability payments totalling $1,400 from Paris Life Insurance Ltd. Half of the disability insurance premiums were paid by Joel Inc. and half by Rose (see payroll deduction above). Rose has paid a total of $350 in disability insurance premiums since she commenced employment at Joel Inc. in 2018.

(4) In 2021, Joel Inc. paid $424 (including HST) for the preparation of Rose's 2020 income tax return and $530 (including HST) for Rose to see a financial planning consultant regarding retirement planning.

(5) Rose is taking courses towards her M.B.A. degree on a part-time basis during the evening. She is taking the courses on her initiative and for her own benefit. During 2021, Joel Inc. paid for the tuition for these M.B.A. courses which amounted to $1,000. Joel Inc. also paid $400 in tuition for Rose to attend a two-day computer workshop on company time to learn about the new software system that the company had just installed.

(6) Director's fees of $2,000 were received by Rose from Clint's Hi-Tech Ltd., a company owned by Rose's spouse.

(7) Birthday gift of $200 cash was received and was expensed by Joel Inc.

(8) Rose received an employee loan of $6,000 on January 10th, 2021, at 1% interest to purchase a notebook computer for personal use. The interest was payable on each anniversary date of the loan, and Rose paid the interest owing on the loan on the due date in 2022. Assume that the prescribed interest rates applicable to employee loans for 2021 are: first quarter, 2%; second quarter, 1%; third quarter, 3%; fourth quarter, 1%.

(9) For 12 months, Joel Inc. paid Rose a monthly gas allowance of $250 regardless of the number of kilometres she drove. In addition, she was provided with a company-owned automobile costing $38,500 (including HST) at the beginning of January. Rose's kilometres for personal use were 10,000 out of a total of 25,000 kilometres. Operating costs paid (excluding gas) by Joel Inc. during 2021 amounted to $2,920, including insurance of $600 and HST.

(10) Joel Inc. provides free reserve parking spot for company executive management team members and Rose is one of the three members. Normally, the reserve parking will cost individual $180 per month.

(11) Rose and her spouse Clint were provided with Joel Inc.'s condo in the Bahamas for a one-week holiday during the winter. Excluding HST considerations, such accommodation during this peak period would have cost them $500 as opposed to the $100 actually paid by Rose.

(12) Rose used her frequent-flyer points accumulated as a result of her business trips (which had been paid by Joel Inc.) for her holiday in the Bahamas. She saved $800, plus $104 of HST, by using the frequent-flyer points.

(13) Rose bought merchandise from Joel Inc. during the year and saved $180 (excluding HST of $23) using its 30% employee discount, which is available to all employees. Joel Inc.'s mark-up is 100%.

(14) Rose was given a trip to Hawaii by one of Joel Inc.'s clients in appreciation of Rose's services (including HST), which worth $6,000.

Required:

(A) Rose would like you to calculate her employment income for 2021, cross-reference your answer to the appropriate sections of the Act to all the items included in the calculation.

Be sure to list as "items omitted" any of the above amounts omitted in the calculation of

employment income with the appropriate cross-reference as well.

(B) Rose also wants you to recalculate her automobile benefit amount assuming the company

did not provide her with a car and she used her own car instead. In this case the company would continue to pay for the operating costs of Rose's car.

its a 50 point question so please elaborate answer using income tax facts and laws!