On January 2, 2021, Ms. Sherry 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 (RPP) Contributions (NEL Makes a matching contribution) 3,200 EI Premiums 890 CPP Contributions 3,166 United Way Donations 450 Professional Association Dues 1,250 Other Information:

1. Sherry's moving expenses total $6,800. NEL reimbursed Sherry for 100% of these costs.

2. For the year ending December 31, 2021, Sherry was awarded a bonus of $32,000. Of this total, $25,000 was paid during 2021, with the remainder of $7,000 paid in January, 2022.

3. NEL provided Sherry with a car to be used for employment purposes and paid the operating costs for the year that totalled $8,100. The cost of the car was $39,550, including HST of $4,550. The car was available to Sherry throughout 2021. She drove a total of 63,000 kilometers. This included 8,000 kilometers of personal use and 55,000 for employment purposes.

4. In negotiating her new position with NEL, Sherry had asked for a $50,000 interest free loan as one of her benefits. NEL's human resources department indicated that the CEO would not approve any employee loans. However, they agreed to advance $50,000 of her 2022 salary as of November 1, 2021. 5. In her employment related travels, Sherry has accumulated over 100,000 Aeroplan points. During 2021, she and her partner Diane used 50,000 of these points for a weekend flight to New York City. If she had purchased them, the tickets would have cost a total of $940. The accumulation of the points is not considered an alternative means of remuneration.

6. NEL provided Sherry with the following additional benefits:

Allowance for acquiring clothing $4,800

Squash Club membership (No Employment Related Use) 2,800

Financial Advisor Fees 1,200

7. Sherry's previous employer was a CCPC. In 2020, she was granted options to buy 500 of the company's shares at $20 per share. This option price was higher than the estimated FMV of the company's shares at the time the options were granted. On January 2, 2021, Sherry exercised these options. At this time the FMV of the shares was $28 per share. Sherry immediately sells the shares for $28 per share. 8. Sherry was required by her employer to acquire a laptop computer to be used for employment purposes. At the beginning of 2021, she purchased a computer at a cost of $1,356, including HST of $256. During 2021, her expenditures for computer related supplies totalled $150.

Required: Determine Sherry's 2021 employment income.

Answer rating: 100% (QA)

Stepbystep explanation Item 1 There is no tax on moving fee reimbursement The costs were repaid ther... View the full answer