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Required:

1) Calculate DD?s net employment income for 2021 (Division B).

2) Provide rationale for any amount(s) excluded from your answer.

- SHOW ALL THE CALCULATIONS???

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D. Diesel (DD) gave you the following information for 2021. DD became the vice-president of a public Canadian corporation, OPP Limited, on January 1, 2021. DD is 48 years old, lives in Calgary and travels extensively across Canada. DD negotiates contracts for OPP Limited. Receipts and Benefits - 2021 Salary-net of payroll deductions Director fees Receipt of money owed from a former employer Travel Allowance (note 1): Accommodations and meals @ $200 per day for 150 days Car operating cost allowance @ $0.45 per kilometre for 9,000 kilometres plus $10 per day for 150 days Income protection receipts received from Regal Assurance (note 2) Benefits Paid by OPP Limited: Registered Pension Plan Extended health care-Liberty Mutual Group Income Protection premiums Regal Insurance (note 2) Membership fee in Club (golf membership required by all employees): Initiation fees for golf club Annual fee for golf club Moving costs (note 3) Group Term Life Insurance (coverage is $300,000) Loans from OPP Limited (note 4) $ 4,000 2,125 1,050 1,000 2,500 12,000 600 160,000 $ 50,340 5,000 50,000 30,000 5,550 15,000 Payroll deductions and selected disbursements: Payroll deductions: Income taxes withheld Registered pension plan (defined contribution) Current contribution Canada Pension Plan contributions Employment Insurance contributions Group Income Protection premiums (note 2) $ 41,001 4,000 2,749 860 1,050 DD purchased 2,000 shares on July 1, 2021, under a stock option plan at a price of $25 a share. The shares were trading for $35 a share on the date of purchase. The shares were trading for $25 a share when the option was granted. Legal fees DD paid for the collection of the $50,000 owed from a former employer. 5,000 Notes: Note 1 DD's actual travelling and car expenses were: Meals Accommodations Other travel costs reimbursed by company Car expenses (9,000 kilometres were for business, a total of 16,000 kilometres driven): Gasoline Maintenance Auto accident costs while on business trip Insurance Licence Interest paid on car loan (see note 4) Capital Cost Allowance for car $ 1,700 800 1,600 1,800 90 300 14,175 $11,250 23,750 6,000 Note 2 OPP Limited paid 50% of the premium to Regal Assurance for income protection payments. During 2021, DD received $15,000 in periodic payments in respect of an eight-week illness. Note 3 Although DD started to work for OPP Limited in January 2021, the family did not move to Calgary from Halifax until February 28, 2021. The company paid all the moving costs. Note 4 DD obtained two loans from OPP Limited as part of the employment contract: a) Loan of $150,000, dated July 1, 2021, to acquire a new home in Calgary. The loan bears annual interest of 2% and is repayable over a 25-year period in annual instalments on the anniversary date of July 1. Interest is payable on the same date. b) Loan of $10,000 dated January 1, 2021, to assist in the acquisition of a car acquired in early January 2021 for $35,000 (excluding the 5% GST; no Provincial Sales Tax (PST) in Alberta) to be used in connection with DD's duties of employment. The loan bears interest at 3% and is repayable over the next three years in equal annual instalments. Interest is payable on December 31 each year. DD paid the interest for 2021 on December 31, 2021. The prescribed interest rate is 4% for all quarters. REQUIRED: 1) Calculate DD's net employment income for 2021 (Division B). 2) Provide rationale for any amount(s) excluded from your answer. D. Diesel (DD) gave you the following information for 2021. DD became the vice-president of a public Canadian corporation, OPP Limited, on January 1, 2021. DD is 48 years old, lives in Calgary and travels extensively across Canada. DD negotiates contracts for OPP Limited. Receipts and Benefits - 2021 Salary-net of payroll deductions Director fees Receipt of money owed from a former employer Travel Allowance (note 1): Accommodations and meals @ $200 per day for 150 days Car operating cost allowance @ $0.45 per kilometre for 9,000 kilometres plus $10 per day for 150 days Income protection receipts received from Regal Assurance (note 2) Benefits Paid by OPP Limited: Registered Pension Plan Extended health care-Liberty Mutual Group Income Protection premiums Regal Insurance (note 2) Membership fee in Club (golf membership required by all employees): Initiation fees for golf club Annual fee for golf club Moving costs (note 3) Group Term Life Insurance (coverage is $300,000) Loans from OPP Limited (note 4) $ 4,000 2,125 1,050 1,000 2,500 12,000 600 160,000 $ 50,340 5,000 50,000 30,000 5,550 15,000 Payroll deductions and selected disbursements: Payroll deductions: Income taxes withheld Registered pension plan (defined contribution) Current contribution Canada Pension Plan contributions Employment Insurance contributions Group Income Protection premiums (note 2) $ 41,001 4,000 2,749 860 1,050 DD purchased 2,000 shares on July 1, 2021, under a stock option plan at a price of $25 a share. The shares were trading for $35 a share on the date of purchase. The shares were trading for $25 a share when the option was granted. Legal fees DD paid for the collection of the $50,000 owed from a former employer. 5,000 Notes: Note 1 DD's actual travelling and car expenses were: Meals Accommodations Other travel costs reimbursed by company Car expenses (9,000 kilometres were for business, a total of 16,000 kilometres driven): Gasoline Maintenance Auto accident costs while on business trip Insurance Licence Interest paid on car loan (see note 4) Capital Cost Allowance for car $ 1,700 800 1,600 1,800 90 300 14,175 $11,250 23,750 6,000 Note 2 OPP Limited paid 50% of the premium to Regal Assurance for income protection payments. During 2021, DD received $15,000 in periodic payments in respect of an eight-week illness. Note 3 Although DD started to work for OPP Limited in January 2021, the family did not move to Calgary from Halifax until February 28, 2021. The company paid all the moving costs. Note 4 DD obtained two loans from OPP Limited as part of the employment contract: a) Loan of $150,000, dated July 1, 2021, to acquire a new home in Calgary. The loan bears annual interest of 2% and is repayable over a 25-year period in annual instalments on the anniversary date of July 1. Interest is payable on the same date. b) Loan of $10,000 dated January 1, 2021, to assist in the acquisition of a car acquired in early January 2021 for $35,000 (excluding the 5% GST; no Provincial Sales Tax (PST) in Alberta) to be used in connection with DD's duties of employment. The loan bears interest at 3% and is repayable over the next three years in equal annual instalments. Interest is payable on December 31 each year. DD paid the interest for 2021 on December 31, 2021. The prescribed interest rate is 4% for all quarters. REQUIRED: 1) Calculate DD's net employment income for 2021 (Division B). 2) Provide rationale for any amount(s) excluded from your answer.

Answer rating: 100% (QA)

1 DDs net employment income for 2021 is calculated as follows Gross employment income Salary net of ... View the full answer