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Monti is employe 1) Monti earnec 2) A cash bonu PM Co. 3) Monti was p

Monti is employe 1) Monti earnec 2) A cash bonu PM Co. 3) Monti was p

FINANCIAL ACCOUNTING
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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Monti is employed by PM Co., a public corporation. The following information pertains to the 2021 tax year: 1) Monti earned $58,000 from PM Co. 2) A cash bonus of $8,000 was announced on December 3rd, to be paid to Monti on January 10th, 2022 by PM Co. 3) Monti was provided with a company car for all twelve months of 2021. The cost of the car (including taxes) was $32,000. All $8,000 of operating costs were paid by PM Co.. Monti drove the car 21,000 kilometers in 2021. 6,300 kilometers were for personal use. 4) Monti and PM each contributed $2,000 towards Monti's registered pension plan. 5) In January, Monti was granted a stock option to purchase 1,000 shares in PM Co. at a cost of $8.00 per share. At that time, the fair market value per share was $9.00. Monti exercised the option in February when the market value had risen to $9.50 per share 6) An annual union due of $400 was deducted from Monti's pay in 2021. 7) Monti received a clothing allowance of $200 per month during 2021. REQUIRED: Calculate Monti's minimum employment income for tax purposes for 2021 in accordance with Section 3 of the Income Tax Act. (Ignore enhanced CPP at this time.) Write your answer (without $ sign and rounded to zero decimal places) in the space provided below.
Transcribed Image Text:Monti is employed by PM Co., a public corporation. The following information pertains to the 2021 tax year: 1) Monti earned $58,000 from PM Co. 2) A cash bonus of $8,000 was announced on December 3rd, to be paid to Monti on January 10th, 2022 by PM Co. 3) Monti was provided with a company car for all twelve months of 2021. The cost of the car (including taxes) was $32,000. All $8,000 of operating costs were paid by PM Co.. Monti drove the car 21,000 kilometers in 2021. 6,300 kilometers were for personal use. 4) Monti and PM each contributed $2,000 towards Monti's registered pension plan. 5) In January, Monti was granted a stock option to purchase 1,000 shares in PM Co. at a cost of $8.00 per share. At that time, the fair market value per share was $9.00. Monti exercised the option in February when the market value had risen to $9.50 per share 6) An annual union due of $400 was deducted from Monti's pay in 2021. 7) Monti received a clothing allowance of $200 per month during 2021. REQUIRED: Calculate Monti's minimum employment income for tax purposes for 2021 in accordance with Section 3 of the Income Tax Act. (Ignore enhanced CPP at this time.) Write your answer (without $ sign and rounded to zero decimal places) in the space provided below.
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