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Urgent!!! Need answer asap 1 ) Susan Smith commenced employment with Lion Mountain Experience ( LME ) , a public corporation, on January 1 ,
Urgent!!! Need answer asap
Susan Smith commenced employment with Lion Mountain Experience LME a public corporation, on January
LME owns a suite of hotels and offered her the use of a unit at one of the hotels for $ per month. The regular monthly rate for the unit was $ per month. She moved into the hotel on January and lived there until June On July Susan moved into a townhouse she had purchased on May
To help her buy the townhouse, LME provided her with a $ interestfree housing loan. The funds were provided to Susan on May Assume the prescribed rate throughout was
During Susan earned $ This included several large bonuses due to her exceptional sales ability. The company withheld the following amounts from her salary:
a Income tax $
b CPP $
c EI $
d Registered Pension Plan Contributions RPP $
e Payment for Personal Use of Automobile $
LME matched Susans contribution to the RPP eg contributed $ to her plan
During the year Susan received two noncash gifts from LME, a season ski pass worth $ and a Christmas gift certificate which could be used at a variety of restaurants for $
Her favorite uncle visited her and went skiing with a day pass that Susan provided. He was severely injured in a fall while skiing. GME provided Susan with grief counselling services worth $
During the skiing season, Susan bought a number of daily ski passes for friends and family using LMEs corporate discount which is available to all employees. The value of the savings from these discounts totalled $
LME provided Susan with a membership in the exclusive Alpine Ski Club and Spa. The cost of the membership was $ Susan took her clients there for meals and drinks. LME paid all the charges on her account as they were related to potential clients for LME. The cost in was $
Susan was granted an option to buy shares of the companys shares at $ per share when she started with the company. At that time the shares were trading for $ per share. On May the shares are trading at $ per share and Susan exercises her option and buys shares for $ She is still holding the shares on December
LME provides Susan with a luxury vehicle that she uses to drive her clients on tours and to and from the airport. It was purchased by the company in late for $ inclusive of all sales taxes. The vehicle was used by Susan throughout During the year she drove the vehicle kilometers, of which kilometres were related to her employment duties. LME pays all operating and maintenance costs which totalled $ in LME withheld $ from her December salary to pay for her personal use of the vehicle in
Susans job requires her to meet clients all hours of the day and night. LME provides her with a signed T stating that she is required to pay for certain employment expenses without reimbursement and use a portion of her home for work. Susan has set up an office in her home. The office work space occupies square feet of the square feet available in her townhouse. She used this space between July and December
a Work space related expenditures are as follows:
i Month maintenance for months $
ii Hydro for months $
iii. Property Insurance for months $
iv Property Tax for months $
v Big Screen TV to entertain clients $
vi Office Furniture $
vii. Furniture for client entertainment area $
Susan received an allowance of $ per month for the months to cover the cost of maintaining a work space in the home.
True or False Questions:
The standby charge that Susan would have to include in her employment income rounded up to the nearest dollar is $
TrueFalse
Susan's home office expense deduction is $
TrueFalse
Susan's taxable benefit on her housing loan is $
TrueFalse
The stock option benefit that Susan must include in her employment income is $
TrueFalse
The Registered Pension Plan contribution that the employer made to Susan's Registered Pension Plan does not need to be included in her employment income.
TrueFalse
Susan's counselling sessions in the amount of $ would be taxable, since they related to something that happened to her Uncle.
TrueFalse
Susan's hotel stay in Calgary is completely tax free.
TrueFalse
Susan's Net Employment Income in is $
TrueFalse
Susan's payment for the personal use of the automobile reduce her total taxable automobile benefit for net employment income calculation purposes.
TrueFalse
Income taxes withheld of $ are deducted in computing Susan's net employment income.
TrueFalse
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