Question
t Yuen Li was terminated from his employment with Exit Ltd. in July 2022. In November, he began work as a commission salesperson for
t Yuen Li was terminated from his employment with Exit Ltd. in July 2022. In November, he began work as a commission salesperson for Kolex Ltd., a Canadian public corporation. Yuen has asked you to help him prepare his 2022 tax return. Information regarding his employment for 2022 is outlined below. 1. Yuen's employment with Exit was terminated on July 31. His salary to that date was $58,000. Besides income tax, Exit deducted the following amounts from his salary: Registered pension plan EI and CPP contributions Group sickness and accident insurance plan premium $4,000 4,453 500 Exit also contributed $4,000 to an RPP and $500 to a group sickness and accident insurance plan on Yuen's behalf. Yuen took a medical stress leave from January 10 to March 15. His salary was not paid during the leave. However, he received $4,500 for loss of earnings from the group sickness and accident insurance plan. In previous years, Yuen had paid a total of $3,000 in premiums to the plan. 2. On July 31, Yuen returned the company car to Exit, which had been available for his personal use. The car had an original cost of $35,000 and a book value of $24,000. Yuen drove the car 20,000 km in 2022, of which 8,000 km was for employment purposes. Exit paid the operating expenses of $2,900. 3. When his employment was terminated, Yuen paid a lawyer $800 to settle compensation issues. As a result, he received additional holiday pay of $1,000 and a retiring allowance of $6,000 for his 10 years of service. 4. Yuen collected employment insurance of $5,400 before starting his employment with Kolex on November 1. 5. Besides a base salary of $1,000 per month, Yuen receives commissions on sales. His commission is 4% of sales. His first sales were made in late December and totalled $150,000. He received the related commission on January 15, 2023. On December 1, 2022, Kolex paid Yuen $1,500 as an advance against commissions. 6 Koley certified that Yuen was required to nay his own car and other evnences On November 1 he leased a car at $1100 per month ences www
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started