The following information relates to Perry Somer's financial affairs in 2020: 1. Perry is employed as a salesperson and is remunerated by commissions. He must pay all of his own expenses. During the year, he earned commissions of $37.000. His expenses were as follows: Automobile (operating costs) Entertainment (meals) Convention (related to his employment) Donations Telephone long-distance charges (Personal use 80%) $4,000 1,300 500 500 1,300 The personal-use portion of his automobile expense is 20%.The UCC of his automobile at the end of the previous year was $6.700. 2 He made the following capital transactions: Shares of public corporation A Shares of public corporation B Shares of Canadian-controlled private corporation (a small business corporation) Gain (loss $13,300 (24.000) (8.000) 3. In 2019. Perry acquired the following two residential rental properties. Property x Property Y Land $13,300 $15.000 Building 93.200 60,000 Maximum capital cost allowance was claimed in 2019. In 2020, the city expropriated property Y for $82,700 (and $22.700, building $60,000). Perry was pleased because property Y was vacant for part of the year after a tenant vacated unexpectedly. In 2020. net rental income from both properties (after all expenses but before capital cost allowance) was $1.000. 4. Perry's other income and expenses are as follows: $2,600 1.700 Income: Taxable dividends-Canadian public corporations Interest on foreign bonds (net of 15% withholding tax) Expenses Interest on a loan used to acquire the foreign bonds Investment counsel fee 1.700 1.100 5. During the year, Perry made a contribution of 1,000 to a registered pension plan, which was matched by his employer. In addition, he contributed $2,600 to his RRSP. Required: Calculate Perry's minimum 2020 net income in accordance with the aggregating formula for determining net income for tax purposes. A Employment Income: Automobile Operating expenses Commission Income Contribution to RPP Entertainment Expense Telephone Expense Automobile CCA Net Employment Income $ 0 Rental Income: Net rents before CCA Property X CCA Recapture of CCA Net rental income $ 0 Other Property Income: Dividends Foreign interest interest expense Investment counsel fees Net Property Income $ 0 B Capital Gains: Taxable capital gains - Corp A Taxable capital gains - Property Y Allowable capital losses - Corp B Net taxable capital gains $ 0 C Other Deductions RRSP deduction CPP enhanced contributions Allowable Business Investment Loss D (ABIL) Net income for Tax purposes $ 0 The following information relates to Perry Somer's financial affairs in 2020: 1. Perry is employed as a salesperson and is remunerated by commissions. He must pay all of his own expenses. During the year, he earned commissions of $37.000. His expenses were as follows: Automobile (operating costs) Entertainment (meals) Convention (related to his employment) Donations Telephone long-distance charges (Personal use 80%) $4,000 1,300 500 500 1,300 The personal-use portion of his automobile expense is 20%.The UCC of his automobile at the end of the previous year was $6.700. 2 He made the following capital transactions: Shares of public corporation A Shares of public corporation B Shares of Canadian-controlled private corporation (a small business corporation) Gain (loss $13,300 (24.000) (8.000) 3. In 2019. Perry acquired the following two residential rental properties. Property x Property Y Land $13,300 $15.000 Building 93.200 60,000 Maximum capital cost allowance was claimed in 2019. In 2020, the city expropriated property Y for $82,700 (and $22.700, building $60,000). Perry was pleased because property Y was vacant for part of the year after a tenant vacated unexpectedly. In 2020. net rental income from both properties (after all expenses but before capital cost allowance) was $1.000. 4. Perry's other income and expenses are as follows: $2,600 1.700 Income: Taxable dividends-Canadian public corporations Interest on foreign bonds (net of 15% withholding tax) Expenses Interest on a loan used to acquire the foreign bonds Investment counsel fee 1.700 1.100 5. During the year, Perry made a contribution of 1,000 to a registered pension plan, which was matched by his employer. In addition, he contributed $2,600 to his RRSP. Required: Calculate Perry's minimum 2020 net income in accordance with the aggregating formula for determining net income for tax purposes. A Employment Income: Automobile Operating expenses Commission Income Contribution to RPP Entertainment Expense Telephone Expense Automobile CCA Net Employment Income $ 0 Rental Income: Net rents before CCA Property X CCA Recapture of CCA Net rental income $ 0 Other Property Income: Dividends Foreign interest interest expense Investment counsel fees Net Property Income $ 0 B Capital Gains: Taxable capital gains - Corp A Taxable capital gains - Property Y Allowable capital losses - Corp B Net taxable capital gains $ 0 C Other Deductions RRSP deduction CPP enhanced contributions Allowable Business Investment Loss D (ABIL) Net income for Tax purposes $ 0