You have just finished meeting with Paul and Christine, a married couple, who have come to you for some tax advice. They brought along information about Paul's employment income for 2019. For several years, Paul has been a commission salesperson working for a company that sells technology solutions to businesses. For 2019, he earned a base salary of $180,000 plus commissions based on his sales. He travels across the country for work and is very successful. He is responsible for paying certain expenses when he is travelling, while his employer is responsible for other expenses. Paul is responsible for paying any entertainment and promotional costs he incurs, as well as air transportation, hotel, and meal costs while he is travelling for business. Beginning March 1, 2019, Paul's employer provided him with a leased vehicle for the rest of the year. He had no car before this date. As his employer does not have an office in Vancouver, Paul operates out of his home office, where he principally conducts business. He has a desk and computer equipment that he owns. This office represents 10% of the floor space in Paul's home. While he does not see clients at his home, he does use this space exclusively for business. Paul provides you with the following information for 2019: Paul: Salary paid during the year Commission income paid during the year $180,000 20,000 Expenses paid personally: Utilities for house $2,000 Minor repairs to home 1,700 Property taxes 3,500 Travel costs (airline tickets and hotel costs) 15,000 Meals while travelling 5,000 Entertainment of clients 6,000 Promotional material (brochures) 200 House insurance 600 Mortgage interest 10,000 New computer and printer purchased this year 2,500 Golf membership for golfing with clients 4,000 Benefits paid for by employer: Vacation for Paul and Christine as a reward for having $6,000 the largest increase in sales this year Health and dental benefits 2,000 Long-term disability insurance with wage-loss protection Group term life insurance Financial planning - annually, employer pays for one meeting with a financial planner for each employee Gift to Paul provided on his birthday - front-row tickets to a hockey game 500 960 1,000 900 Monthly lease payment on the company car Car operating costs (maintenance, fuel, insurance) Total kilometres driven Personal kilometres driven 750 6,000 40,000 km 15,000 km Gift from customer: Golf clubs as a gift from a very happy customer Paul's payment to his employer for personal use of the vehicle within 45 days of the year end $1,200 $1,500 Paul has notified his employer that, if he is eligible, he will elect to use the "lesser of" calculation for the operating cost benefit on the vehicle. Required: a) Determine the expenses that Paul can deduct from his employment income. Calculate the expense deductions for sales and non-sales employees and explain items that are excluded from your calculations. Briefly explain whether Paul should claim expenses as a sales or non-sales employee. (7 marks) b) Determine Paul's net income for tax purposes for 2019. (9 marks) c) List all items excluded from your net income calculation and explain why the item has been excluded. (3 marks) Note: Round all amounts to the nearest dollar and ignore GST and provincial taxes. Show the full detail of all steps in your calculations, even if the result is zero