to Calculate her income from employment. Ignore the effects of any leap year. Problem 18 Susanna Sculley, a marketing representative with MBI Technology Inc. (a public company), pro vided the following information relating to her current vear's nersonal income tax return, Susanna's cumulative pay at year end revealed the following: ITA (1),1)), 7(1), 801)0,801 ......842,000 23,500 1,200 Gross pay Base salary Gross commissions ....... Daycare subsidy program .. Deductions from gross pay Employment Insurance contributions Canadian Pension Plan contributions ... Union dues Income tax paid.. Net pay ...... Expenses to earn commission income Meals and entertainment Hotel and travel incidentals (860) (2,749) (280) (19,800) $43,011 Airfare 2,300 1,780 1,800 $ 5,880 Total .. MBI also granted Susanna a stock option, which she exercised in April of the current year. The following information relates to the stock option: Number of shares for options exercised ....... Fair market value-grant date .... Option price .... Fair market value-exercise date ..... ... 1,000 . $1.50 $1.80 . $2.50 Susanna's employer did not reimburse her, or provide her with an allowance for the expenses incurred to earn commission income. However, MBI did expect her to take clients out for lunch and travel when necessary. Susanna would like you to calculate her income from employment for the current year. Problem 19 CHAPTER to Calculate her income from employment. Ignore the effects of any leap year. Problem 18 Susanna Sculley, a marketing representative with MBI Technology Inc. (a public company), pro vided the following information relating to her current vear's nersonal income tax return, Susanna's cumulative pay at year end revealed the following: ITA (1),1)), 7(1), 801)0,801 ......842,000 23,500 1,200 Gross pay Base salary Gross commissions ....... Daycare subsidy program .. Deductions from gross pay Employment Insurance contributions Canadian Pension Plan contributions ... Union dues Income tax paid.. Net pay ...... Expenses to earn commission income Meals and entertainment Hotel and travel incidentals (860) (2,749) (280) (19,800) $43,011 Airfare 2,300 1,780 1,800 $ 5,880 Total .. MBI also granted Susanna a stock option, which she exercised in April of the current year. The following information relates to the stock option: Number of shares for options exercised ....... Fair market value-grant date .... Option price .... Fair market value-exercise date ..... ... 1,000 . $1.50 $1.80 . $2.50 Susanna's employer did not reimburse her, or provide her with an allowance for the expenses incurred to earn commission income. However, MBI did expect her to take clients out for lunch and travel when necessary. Susanna would like you to calculate her income from employment for the current year. Problem 19 CHAPTER
