Answered: using loss of $100,000 in 2020. Which…

using loss of $100,000 in 2020. Which of the following amounts represent crease to Peter's employment income in 2020 as a result of this reimbursement show Calculations)

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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Question

Peter moved from Manitoba to Nova Scotia in 2020, as a result of a promotion by his
employer to open a new branch. When he sold his house in Manitoba he incurred a
loss of $100,000 on the sale. Peter's employer decided to reimburse him for the
housing loss of $100,000 in 2020. Which of the following amounts represent the
increase to Peter's employment income in 2020 as a result of this reimbursement?
(Show Calculations)
(a) No change to employment income
(b) $42,500 added to employment income
(c) $15,000 added to employment income
(d) $100,000 added to employment income

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