Susanna Sculley, a marketing representative with MBI Technology Inc. (a public company), provided the following information relating to her current-year's personal income tax return. Susanna's cumulative pay at year end revealed the following:
Gross pay
Base salary$32,000
Gross commissions 23,500
Daycare subsidy program 1,200
Deductions from gross pay
Employment Insurance contributions...........(840)
Canadian Pension Plan contributions......... (2,307)
Union dues ......................................... (280)
Income tax paid.................................(19,800)
Net pay $33,473
Expenses to earn commission income
Meals and entertainment2,300
Hotel and travel incidentals1,780
Airfare1,800
Total$ 5,880
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 exercised1,000
Fair market value - grant date$1.50
Option price$1.80
Fair market value - exercise date$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.
REQUIRED
Compute Susanna's net income from employment for the current year.