Richard earned a salary of $40,000 plus commissions of $6,000 in the current year as a salesperson employed by B Ltd. He incurred the following expenses to earn his income:
Car expenses……………………………………………. $ 2,500
Transportation (other than car) & accommodation……… 5,000
Client entertainment meals………………………………. 600
Advertising and promotion………………………………. 2,000
………………………………………………………. $10,100
Determine the maximum deduction that Richard is entitled to claim in computing his employment income for the current year. Income tax reference: ITA 8(1)(f), (h), (h.1), 67.1.