Mr. Jordon Lake is an administrator for a publicly traded Canadian manufacturing company. His gross salary for

the year ending December 31, 2017 is $83,000. For the 2017 taxation year, Mr. Lake's employer withheld the

following amounts from his income:

Federal Income Tax $13,200

Canada Pension Plan Contributions 2,564

Employment Insurance Premiums 836

Registered Pension Plan Contributions 4,980

Reimbursement for use of company vehicle 650

Employee Group Disability Plan Contributions 175

Mr. Lake's employer made a matching contribution of $4,980 to his registered pension plan and a $175 matching

contribution for the group disability insurance. In addition, the company paid $1,000 to a group dental plan and

$200 in life insurance premium through SunLife Insurance for the benefit of Mr. Lake

OTHER INFORMATION:

1 During 2017 Mr. Lake was provided with an automobile from his employer. The car was leased for

$789 per month. Included in the monthly lease payment was $87 for lease insurance. The vehicle was

leased by the company for the full year, however Mr. Lake only had the vehicle to him for 338 days in

2017. Mr. Lake drove the vehicle a total of 18,000 KM in the year, of which 6,500KM were for personal

purposes.

2 During 2017 Mr. Lake was hospitalized for a period of four weeks. The disability plan provided him

with benefits that totalled $2,650 during this period. Mr. Lake began making contributions to this plan

in 2016 at a rate of $175 per year

3 Mr. Lake's employer provides a gym in the facility available to all employee. Mr. Lake works out a least

twice a week in the gym. If he were to join a private gym, the cost would be $100 per month.

4 Mr. Lake was required to pay 2017 dues to his professional association in the amount of $2,500

5.The company gifted Mr. Lake with a watch valued at $600 for his birthday. In addition, because of

excellent work on a special project he received a trip to Toronto and two tickets to a Blue Jays game

valued at $1,500. He enjoyed the trip in August and the Blue Jays won the game!

6 Jordon Lake was chosen to attend a company convention in 2017. During November Jordon and his

wife Lucie went to the convention in Orlando, Florida. While Jordon was busy at the convention, Lucie

enjoyed the shopping and sitting by the pool. The company paid $4,500 for the convention, meals and

travel. Lucie's portion of these expenses was $2,100.

7 Mr. Lake deposits his pay cheque into the TD Bank and received interest income in 2017 in the amount

of $367.

REQUIRED:

Calculate Mr. Jordon Lake's minimum net employment income for the year ending December 31,

2017. Show all calculation. In addition, provide reasons for omitting any item that you have not

included in your calculation. Show all calculations. Ignore any GST or PST implications.

Answer rating: 100% (QA)

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