Ryann Spencer has recently been appointed Regional Director of sales and marketing for Fun Vacations Limited, a

public company. Ryann has come to you for advise regarding the tax implications of her new position. During the

meeting you were able to determine the following information:

(A) Renumerations for the year:

Salary - Gross $64,000

Less: Canada Pension Plan contributions 2564

Employment Insurance contributions 836

Registered Pension Plan contributions 3600 ($7,000)

Commissions based on company sales 24,000

Total 81,000

(B) Ryann is responsible for paying her own employment expenses and is not reimbursed by her employer. She

has summarized the following expenses related to her employment:

Automobile operating expenditures (at 100%)

Gas and oil $4,900

Car Licence 1,000

Car insurance 1,900

Car maintenance 1,000

CCA 4,950

Painting ( office only) 300

House insurance 800

Hydro (house) 700

Energy (house) 1,200

Property taxes (house) 4,500

Mortgage interest 24,000

Accommodations (while traveling on company business) 10,000

Air travel 4,200

Advertising and promotion 5,000

Entertainment of clients 2,700

Supplies 700

Ryann uses her automobile a total of 55,000 kilometres during 2017 of which 38,500 kilometres were

employment related. All expenses are reasonable and are supported by receipts. The employer will provide a

signed T2200.

(C) Ryann's contract also requires that she maintain an office in her home, since no other office is provided. She is

responsible for all costs related to the operation of the office. She does not receive an allowance or

reimbursement related to any of these costs. Ryann estimated that the office occupies approximately 20% of her

home. This estimate is based on square footage. Ryann estimates that if she had to rent a comparable amount of

space she would have to pay $950 per month.

(D) Ryann acquired a new car with the help of a loan from the employer. On January 1, 2017 the company lent

her $35,000 at a rate of 1% interest. The loan requires annual payment of principle of $3000 plus accrued interest

each December 31. Ryann made the required principle and interest payment. The prescribed interest rate for

2017 was 4%.

Calculate Ryann's net employment income for 2017. Show all calculation