6. Paul uses 25 percent of his personal residence as an office. During 2021, the costs associated withhis home were as follows:Interest Payments On MortgageKitchen renovationsProperty TaxesUtilitiesFurnace, Wiring And Foundation RepairsHis total home office expenses are:His net business income based on notes 4 to 6 above is :Paul's net income for tax purposes based on the above is:(2,000) 6,0007. Paul sold a piece of furniture in the year for $12,000. The cost of this furniture was only $500. Histaxable capital gain is$161,0008. In September 2021, the share price spikes and Paul sells all the Public Company shares hepurchased in July for $26.25 per share (related to note 3 above). What amount will be included into hisnet income if any?8. In September 2021, the share price spikes and Paul sells all the Public Company shares hepurchased in July for $26.25 per share (related to note 3 above). What amount will be included into hisnet income, if any?NIL(6,158) (23,153)1,8479. Paul paid $410/month in child support, and $620/month in spousal support. All payments weremade in full in 2021.His deduction for child support will be:His deduction for spousal support will be:5,500(3,971)5,750(27,310)11,5007,148(4,920) 196,132 191,212 201,63211,42510,0004,4422,67911,0001,61616,000(20,483) 12,9254,0003,25089025,000(3,586)6,2503,166(8,104)16,896(7,440) Required: Determine Paul's net income for tax purposes for the year ended December 31, 2021by dragging the best option and dropping it in the empty box for each item.For each item, if there is an amount that should be included into income, you will select the bestnumerical response and drag/drop into the empty box. If there is no amount to include intoincome for an item, then you would drag the "NIL" option into the empty box.1. Paul works for a large Canadian Public Company. His salary is $161,000. During the year hisemployer transferred him from Vancouver to Toronto. Details of his move are below.2. Paul's employer withheld the following amounts from his income:Federal Income TaxEmployment Insurance PremiumsCanada Pension Plan ContributionsUnion dues16,000Interest incurred8903. He was granted 2,000 options in January 2021 at an option price of $20. At the time the optionswere granted, the shares were trading at $18/share. When Paul exercised all his options in July 2021the shares were trading at $23/share.CCA3,1664.Paul also runs a small consulting busines out of his home. He primarily works virtually, but uses hiscar when he runs strategic planning sessions with clients. Revenue earned in the year was $25,000.His total vehicle costs are:2,0005. He uses his personal vehicle for his consulting business. 35% of the mileage pertained to hisbusiness travels.Operating costs incurred6,1583,49513,5006. Paul uses 25 percent of his personal residence as an office. During 2021, the costs associated withhis home were as follows:

6. Total office expenses = 25% of personal residence Total cost associated with Paul's home is as…

His total home office expenses are: His net business income based on notes 4 to 6 above is : 7. Paul sold a piece of furniture in the year for $12,000. The cost of this furniture was only $500. His taxable capital gain is

His total home office expenses are: His net business income based on notes 4 to 6 above is : 7. Paul sold a piece of furniture in the year for $12,000. The cost of this furniture was only $500. His taxable capital gain is

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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