Question: please only answer if you are able to follow the same format. I want to know what im doing doing. thank you wrong* On January


On January 2, 2021, Jackson Jones, a professional engineer, moved from Calgary to Edmonton to begin employment with Camden Ltd., a large public corporation. Because of his new employment contract, Jackson requires assistance in determining his employment income for tax purposes. He has provided the following financial information: 1. His salary is $126,500. From this, Camden deducted the appropriate income tax, Employment Insurance premiums of $890, Canada Pension Plan contributions of $3,166, registered pension plan payments of $8,000, and charitable donations of $1,200. 2. Camden provides its executives with a bonus plan. Jackson's 2021 bonus was $26,600, of which $6,700 was received in December and the balance in March 2022. 3. In November, Jackson asked his employer to loan him $16,000 so that he could acquire an investment. Camden advised him that it was company policy not to make loans to employees. However, they gave him the $16,000, stipulating that it was an advance against his 2022 salary, which would be reduced accordingly. 4. Jackson is provided with a company car, which he drove 18,600 km for employment duties and 11,000 km for personal use. The car is leased at $500 per month. Camden paid the total operating costs of $9,400. The car was available for personal use throughout the year. 5. Jackson's moving expenses to transport his belongings to Edmonton were $3,000. Camden paid this cost directly to a moving company on Jackson's behalf. 6. Jackson travels extensively for Camden. In December, he and his spouse used some of the travel points he had accumulated from this travel to attend his father's funeral in Toronto. As a result, he saved the normal airfare of $400 per ticket. 7. Camden pays the following additional amounts for Jackson: 4,800 Allowance ($400 per month) for acquiring executive apparel Investment counsellor fees as part of Camden's counselling program Golf club dues (Jackson rarely uses the club to conduct business) 800 2,000 8. Jackson pays for the following: Dues to the engineers' association Laptop computer and printer $1,070 3,930 Laptop computer and printer Computer supplies (paper, etc.) 3,930 130 Camden has asked each senior executive to acquire a laptop computer at their own expense for work during travel 9. Jackson sold 1,330 shares of Kolex Ltd. (his former employer) at $10 per share. Kolex is a Canadian-controlled private corporation. The shares were purchased under a stock-option plan in 2018 at $3 per share. Appraised value at that time was $5 per share. Required: Calculate: Jackson's 1. Net income from employment for the 2021 taxation year. 2. Net Income for tax purposes 3. Taxable Income $ 126,500 $ 26,600 $ 16,000 $ (8,000) $ 1,070 $ 4,800 $ 660 S 2,000 $ 130 $ 169,760 $ 169,760 Salary Bonus Salary advance Car standby benefit Car Operating benefit Registered Pension Plan (RPP) Engineering dues Clothing allowance Investment counsellor fees Club dues Kolex stock option Benefit Paper supplies Net Employment Income Kolex taxable Capital gain Net Income for Tax purposes Required: Calculate: Jackson's 1. Net income from employment for the 2021 taxation year. 2. Net Income for tax purposes 3. Taxable Income Salary $ 126,500 Bonus $ 26,600 Salary advance $ 16,000 Car standby benefit Car Operating benefit Registered Pension Plan (RPP) $ (8,000) Engineering dues $ 1,070 Clothing allowance $ 4,800 Investment counsellor fees $ 660 Club dues $ 2,000 Kolex stock option Benefit Paper supplies $ 130 Net Employment Income $ 169,760 Kolex taxable Capital gain Net Income for Tax purposes $ 169,760 Kolex Stock Option deduction Taxable Income $ 169,760
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
