On January 2, 2020, Ms. Shirley Kantor moves from London, Ontario, to Thunder Bay, Ontario, in order
Question:
On January 2, 2020, Ms. Shirley Kantor moves from London, Ontario, to Thunder Bay, Ontario, in order to begin employment with Northern Enterprises Ltd. (NEL). Her salary for the year was $142,000. NEL withheld the following amounts from her earnings:
Federal And Provincial Income Tax $32,500
Registered Pension Plan Contributions (NEL Makes A Matching Contribution) 3,200
EI Premiums 856
CPP Contributions 2,898
United Way Donations 450
Professional Association Dues 1,250
The following benefits are received:
1. Free parking- The value of $2,300.
2. Wedding or birthday gifts of up to $700.
3. All-expense paid holiday won as part of a sales contest is 4,500.
4. The employee uses frequent flyer points for a personal trip. The points of $500 were earned as a result of business trips.
5. The company provides an employee discount of 24% for all employees on products sold by Auto Supply. For 2020, the employee purchased for $10,000.
6. The company pays to provide financial counselling for $500, and the preparation of their personal tax returns for $700.
7. The company will pay for annual professional dues for employees. For example, accountants and lawyers.
Required:
Calculated the net income for the year.
Expert Answer:
solution Particulars Amount Income from salary 142000 Bonus 25000 Salary in advance 50000 pensio... View the full answer
