Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The part filled is already correct. So I only need the calculated answer for this question. Paul Fenson is employed as a shipping supervisor. In
The part filled is already correct. So I only need the calculated answer for this question.
Paul Fenson is employed as a shipping supervisor. In the evenings and on weekends, he holds a second job as a real estate salesman for a national real estate firm. His financial Information for 2020 is as follows: 1. His salary from his day job is $60,000 per annum. However, the employer deducts a number of items from his salary, and so his net take-home pay is only $40,846. The following amounts were deducted in 2020: Income tax Union dues Canada Pension Plan Employment Insurance premiums Registered pension plan contribution Reimbursement for personal use of employer's car Charitable donations remitted to United Way $ 11,000 600 2,898 856 3.000 600 800 $19.754 The employer paid the following amounts on behalf of Paul Canada Pension Plan Employment Insurance premiums Registered pension plan Premiums for a mandatory provincial health Insurance plan Group term life Insurance premiums ($50,000 coverage) $2,898 1,198 3,000 600 1.200 $8.896 Paul used the employer's summer camp for a one-month holiday and paid the employer $200 rent. When not being used by employees, the summer camp is rented for the normal amount of $600 per month. Although Paul owned his own car, he was provided with a company car. The car cost the company $35,000. During the year, he drove a total of 24,000 km, of which 16,800 was for personal use. The employer also paid all of the operating costs, which amounted to $3,000. During the year, he attended a shipping conference in Toronto. His spouse travelled with him at the company's expense ($1,000). The employer permitted staff to purchase merchandise from its retail outlet at the company's cost. During the year, Paul purchased for $800 merchandise with a retail value of $1,200. 2. As a real estate salesman, Paul earned a base salary of $8,000 and received commissions of $7,000. In relation to his real estate work, he Incurred the following expenses: $400 3,000 Dues to a local real estate association Fee for a three-day seminar on how to be an effective salesperson Advertising-calendars and pens Car operating costs Promotion (meals and drinks for clients) Personal meals (during in-town business) Purchase of a portable telephone 1,700 4,000 2,800 400 600 Paul used his own car for his real estate activities. The car has an undepreciated capital cost for tax purposes of $10,000. During the year, he drove a total of 30,000 km, of which 27,000 was related to selling real estate. His employer provided him with a monthly car allowance of $200 ($2,400 per year). Required: Determine Paul's net income from employment for 2020. 60,000 400 Salary Holiday camp Life insurance Car Operating benefit Provincial health care 1,200 600 Renistered Pension Plan (RPP Required: Determine Paul's net income from employment for 2020. $ 60,000 400 $ $ 1,200 $ 600 Salary Holiday camp Life insurance Car Operating benefit Provincial health care Registered Pension Plan (RPP) Union dues Reimbursement for car use Car standby Benefit Conference expense for wife Real Estate Income Advertising Car Allowance Car operating expenses Limited Real Estate expenses Salesman employment salary Dues Commission Promotion Subtotal Maximum Deduction allowed Car CCA Net Employment Income $ 2,400 0 64.600Step 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