Determine Mr. Jonsson's employment income for the 2021 taxation year. Ignore all GST/HST and PST implications.
Determine Mr. Jonsson's employment income for the 2021 taxation year. Ignore all GST/HST and PST implications.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Mr. Jonsson is a salesperson handling a line of computer software throughout Western Canada. During 2021, he is paid a salary of $25,500 and receives sales commissions of $47,300. He does not receive an allowance, nor is he reimbursed by his employer for any of his expenses. During the year, Mr. Jonsson made the following employment-related expenditures.
|
Airline Tickets
|
$2,390
|
|---|---|
|
Office Supplies And Shipping Costs
|
385
|
|
Purchase Of Laptop Computer
|
2,095
|
|
Client Entertainment
|
1,780
|
|
Cost Of New Car
|
24,200
|
|
Operating Costs Of Car
|
6,600
|
Determine Mr. Jonsson's employment income for the 2021
Transcribed Image Text:Additional Information
Assume that all of the client entertainment was expended while more than 12
consecutive hours away from the employer's place of business.
The new car was purchased on January 5, 2021, and replaced a car that Mr.
Jonsson had leased for several years. During 2021, Mr. Jonsson drove the car a
total of 50,000 kilometres, of which 35,000 kilometres were for employment
purposes and 15,000 kilometres were for personal use. The maximum capital cost
allowance for the car (100 percent) is $10,890.
In addition to expenditures to earn employment income, Mr. Jonsson has the
following disbursements.
Alberta Blue Cross Medical Insurance Premiums
Group Life Insurance Premiums
$455
695
Mr. Jonsson indicates that he regularly receives discounts on his employer's
merchandise and, during the current year, he estimates that the value of these
discounts was $1,700.
One of the suppliers of his employer paid $2,350 to provide Mr. Jonsson with a one
week vacation at a northern fishing lodge.
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