Question

Andy worked for High Speed Bikes Inc. from March 1st to December 31st during 20x1. He earned a monthly base salary of $4,000, plus 1% commission on all of his sales. During 20x1, Andy's sales totaled $800,000. Andy was required by his employer to pay for his employment expenses. He traveled out of his city most days in order to sell to customers in surrounding towns. He received a monthly allowance of $500 to cover his traveling costs (which has been accurately recognized as 'unreasonable'). Andy and his employer each contributed $2,000 to the company's registered pension plan in 20x1. Andy provided you with the following receipts for 20x1: $5,200 3,200 Gasoline receipts related only to employment Meals with clients Purchase of a laptop Advertising costs Phone call charges for business Consumable supplies for work Membership to a local golf club CANADIAN TAXATION 2019

Answer 1

Andy's employment income for 20x4 in accordance with section 3 of the income tax is as follows:- 8 Explanation Salary 40,000 $ 4000p.m yomon commission 8.000 $ 800000X 4% Travelling 5000 $5oop.mx lo months Callowance less contribution 82000 8 ( 2000) to registered pension plan 151,000 $320000.5 Less Limited Expenses Gasoline 5200 mean with clients 1600 Advertising cost 800 Iphone call changer 1200 consumable soo supplies total limited 9300 expenses maxi mom Luimited expenses 8000 allowed (8000) 42000 less. Mon limited expenses capital loss 2,557 allowance work related 2000 Interest payment $ 32000X1/1 x 0.3 XOSX 12000 (4557) 82004 to Month Andy's employment Income