15 Feb Eric Fenson is employed as a shipping supervisor. In the evenings and on weekends, he holds a second job as a real estate salesman for a national real estate firm. His financial in
Eric Fenson is employed as a shipping supervisor. In the evenings and on weekends, he holds a second job as a real estate salesman for a national real estate firm. His financial information for 2022 is as follows:
His salary from his day job is $66,000 per annum. However, the employer deducts a number of items from his salary, and so his net take-home pay is only $43,747. The following amounts were deducted in 2022:
Income tax $ 13,000
Union dues 700
Canada Pension Plan 3,500
Employment Insurance premiums 953
Registered pension plan contribution 3,300
Charitable donations remitted to United Way 800
$ 22,253
The employer paid the following amounts on behalf of Eric:
Canada Pension Plan $ 3,500
Employment Insurance premiums 1,334
Registered pension plan 3,000
Group term life insurance premiums ($50,000 coverage) 1,300
$ 9,134
Eric used the employer’s summer camp for a one-month holiday and paid the employer $220 rent. When not being used by employees, the summer camp is rented for $700 per month.
Although Eric owns his own automobile, he is provided with a company car. The car costs the company $39,000. During the year, he drove a total of 24,000 km, of which 18,000 were for personal use. The employer also paid all of the operating costs, which amounted to $3,000.
During the year, he attended a conference in Toronto. His spouse travelled with him at the company’s expense ($1,100).
The employer permits staff to purchase merchandise from its retail outlet at the company’s cost. During the year, Eric purchased for $900 merchandise with a retail value of $1,200.
As a real estate salesperson, Eric earns a base salary of $9,000 and receives commissions of $6,000. In relation to his real estate work, he incurs the following expenses:
Dues to a local real estate association $ 440
Fee for a three-day seminar on how to be an effective salesperson 3,000
Advertising?calendars and pens 1,900
Automobile operating costs 4,400
Promotion (meals and drinks for clients) 3,100
Personal meals (during in-town business) 440
Purchase of a cell phone 600
Basic cell phone plan (30%) 240
Eric uses his own automobile for his real estate activities. The car has an undepreciated capital cost for tax purposes of $11,000. During the year, he drove a total of 30,000 km, of which 27,000 was related to selling real estate. His employer provides him with a monthly car allowance of $220 ($2,640 per year).
Required:
Determine Eric’s employment income for tax purposes for 2022.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.