The following information for 2018 has been presented to you by Paula Promoter, the rew no i president of marketing for a public Canadian oil compary. Overpriced Petroleum Limited. Paula, wh 52 years old and now lives in Calgary, travels extensively across Canada. Paula, whose duties negotiating of contracts, began her employment with Overpriced Petroleun on January 1, 2018 Receipts and Fringe Benefits-2018 Salary-net of payroll deductions Director fees Receipt of an amount, not to compete, from former employer Termination payment from former employer Travel allowance (Note (4) below) $ 50,450 5,000 50,000 8,000 Accommodation and meals @ $200 per day for 150 days Car operating cost allowance@ 45c per kilometre plus $10 per day of 30,000 5,550 Income protection receipts recetred from Regal Assurance (Note (2) belos) 15,000 travelling for business travel only (9,000 kilometres) for 150 days Benefits paid by the corporation Registered pension plan Extended health care-Liberty Mutual Group income protection premiums s 4,000 2,125 Regal Assurance (Note (2) below) Membership fee in Petroleum Club (membership required by all employees) -initiation fee annual fee 1,000 Moving costs (Note (3) below) 42,000 Group term life insurance (coverage is $300,000) Note (4) below) Loans by company ( 160.000 $213,275 $377,275 Payroll deductions and selected disbursements-2018 Payroll deductions Income taxes withheld 41,001 Registered pension plan (defined benefit) current contribution Canada Pension Plan contributions 2,594 858 Employment insurance contributions Group income protection premtums (Note (2)) Purchased 2,000 common shares on July 1, 2018 under a stock 1.050 48,403 option plan at a price of $25 per share. Fair market value of shares at the date of purchase was $35. Fair market value of the shares was $25 per share on the date when the option was 50,000 Legal fees paid in connection with the collection of the $50,000 non- competition receipt from her previous employe Notes and Additional Information 5,000 (1) Paula's actual traveling and car expenses, which she is required to pay according to the terms of her employment contract, are as Meals Accommodation 811,250 23,750 6,000 Travel costs (other than car see below) reimbursed by company Car expenses (9,000 kilometres for business purposes out of total kilometres of 16,000) Gasoline Auto accident costs while on a business trip Insurance Licence Interest paid on car loan (see Note (4), below) $1,700 800 1,600 1,800 90 300 IOIT Trans er Assgnm ment (2) The company paid 50% of the premium to Regal Assurance re income protection pay. ment. During 2018, Paula received $15,000 in periodic payments in respect of an eight week Iliness. (3) Although Pauia started to work for Overpriced Petroleum on January 1, 2018, her fanily did not move to Calgary from Toronto until Februarzy 28, 2018. The company paid for all the moving costs of $12,000, an actual loss on the sale of Paula's Toronto home of $25,000 and a disruption allowance of $5,000 4) Paula obtained two loans from the company as part of her employment contract (a) Loan of $150,000, dated July 1, 2018, to acquire a new home in Calgary. The loan bears annual interest at 2% and is repayable over a 25-year period in equal annual instalments on the anniversary date of July 1. Interest is payable on the same date. (b) Loan of $10,000, dated January 1, 2018, to assist in the acquisition of a car acquired in early January 2018 for $35.000 (excluding GST; no PST in Alberta) to be used in connection with her duties of employment The loan bears annual interest at 3% and is repayable over the next three years in equal annual instalments. Interest is payable December 31 each year. Paula paid the interest: for 2018 on time on December 31. 2018 (NOTE: For simplicity you may assume that the prescribed interest rate is a constant 4% for all quarters) Determine Paula Promoter's employment income for 2018 in accordance with Subdivision a of Division B. Ignore the effects of a leap year in your answer Indicate why you have excluded ary of the above amounts from your answer. The following information for 2018 has been presented to you by Paula Promoter, the rew no i president of marketing for a public Canadian oil compary. Overpriced Petroleum Limited. Paula, wh 52 years old and now lives in Calgary, travels extensively across Canada. Paula, whose duties negotiating of contracts, began her employment with Overpriced Petroleun on January 1, 2018 Receipts and Fringe Benefits-2018 Salary-net of payroll deductions Director fees Receipt of an amount, not to compete, from former employer Termination payment from former employer Travel allowance (Note (4) below) $ 50,450 5,000 50,000 8,000 Accommodation and meals @ $200 per day for 150 days Car operating cost allowance@ 45c per kilometre plus $10 per day of 30,000 5,550 Income protection receipts recetred from Regal Assurance (Note (2) belos) 15,000 travelling for business travel only (9,000 kilometres) for 150 days Benefits paid by the corporation Registered pension plan Extended health care-Liberty Mutual Group income protection premiums s 4,000 2,125 Regal Assurance (Note (2) below) Membership fee in Petroleum Club (membership required by all employees) -initiation fee annual fee 1,000 Moving costs (Note (3) below) 42,000 Group term life insurance (coverage is $300,000) Note (4) below) Loans by company ( 160.000 $213,275 $377,275 Payroll deductions and selected disbursements-2018 Payroll deductions Income taxes withheld 41,001 Registered pension plan (defined benefit) current contribution Canada Pension Plan contributions 2,594 858 Employment insurance contributions Group income protection premtums (Note (2)) Purchased 2,000 common shares on July 1, 2018 under a stock 1.050 48,403 option plan at a price of $25 per share. Fair market value of shares at the date of purchase was $35. Fair market value of the shares was $25 per share on the date when the option was 50,000 Legal fees paid in connection with the collection of the $50,000 non- competition receipt from her previous employe Notes and Additional Information 5,000 (1) Paula's actual traveling and car expenses, which she is required to pay according to the terms of her employment contract, are as Meals Accommodation 811,250 23,750 6,000 Travel costs (other than car see below) reimbursed by company Car expenses (9,000 kilometres for business purposes out of total kilometres of 16,000) Gasoline Auto accident costs while on a business trip Insurance Licence Interest paid on car loan (see Note (4), below) $1,700 800 1,600 1,800 90 300 IOIT Trans er Assgnm ment (2) The company paid 50% of the premium to Regal Assurance re income protection pay. ment. During 2018, Paula received $15,000 in periodic payments in respect of an eight week Iliness. (3) Although Pauia started to work for Overpriced Petroleum on January 1, 2018, her fanily did not move to Calgary from Toronto until Februarzy 28, 2018. The company paid for all the moving costs of $12,000, an actual loss on the sale of Paula's Toronto home of $25,000 and a disruption allowance of $5,000 4) Paula obtained two loans from the company as part of her employment contract (a) Loan of $150,000, dated July 1, 2018, to acquire a new home in Calgary. The loan bears annual interest at 2% and is repayable over a 25-year period in equal annual instalments on the anniversary date of July 1. Interest is payable on the same date. (b) Loan of $10,000, dated January 1, 2018, to assist in the acquisition of a car acquired in early January 2018 for $35.000 (excluding GST; no PST in Alberta) to be used in connection with her duties of employment The loan bears annual interest at 3% and is repayable over the next three years in equal annual instalments. Interest is payable December 31 each year. Paula paid the interest: for 2018 on time on December 31. 2018 (NOTE: For simplicity you may assume that the prescribed interest rate is a constant 4% for all quarters) Determine Paula Promoter's employment income for 2018 in accordance with Subdivision a of Division B. Ignore the effects of a leap year in your answer Indicate why you have excluded ary of the above amounts from your