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The question is as follows- Yuen Li was terminated from his employment with Exit Ltd. in July 2020. In November, he began work as a

The question is as follows-

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Yuen Li was terminated from his employment with Exit Ltd. in July 2020. In November, he began work as a commission salesperson for Kolex Ltd., a Canadian public cerporation. Yuen has asked you to help him prepare his 2020 tax retum. InfOrmation regarding his employment for 2020 is outlined below. 1. Yuen's employment with Exit was terminated on July 31,. His salary to that date was $53,000. Besides income tax. Exit had deducted the following amounts from his salary: Registered pension plan $4.000 El and CPP contributions 3,609 Group sickness and accident insurance plan premium 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 fer loss of earnings from the group sickness and accident insurance plan. In previous years. Yuan 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 had driven the car 20,000 km in 2020, of which 8.000 km was for employment purposes. Exit paid the operating expenses of $2300. 3. When his employment was terminated, Yuen paid a lawyer $300 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 ofservice. 4. YUE'I'I collected empIOyment 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 rst sales were made in late December and totalled $150,000. The related commission was received on January 15. 2021. On December 1, 2020, Kolex paid Yuen $1,500 as an advance against commissions

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