Question: Please read it completely from the pictures attached and solve this problem step by step and accurately. Please don't miss any parts. Thank you .
Please read it completely from the pictures attached and solve this problem step by step and accurately. Please don't miss any parts. Thank you
Problem Aisha Patel is employed as a sales manager at Green Earth Solutions Inc., a company
specializing in ecofriendly cleaning products. In she received a promotion to Director of Sales. In
her new role, Aisha is responsible for managing client accounts and driving sales for the company's eco
friendly products. As a result, she earned a salary of $ and an additional $ in commissions
based on her sales performance. Additionally, she earned a bonus of $ for hitting her Q sales
target, but this bonus will not be paid until May
Her employer provided her with a car loan at an interest rate of to purchase a vehicle as she will
require one to fulfill the responsibilities of her new role. On April she purchased a $ SUV
plus HST at The loan is for a duration of years with monthly payments of interest only. They also
gave her a monthly allowance of $ for her carrelated expenses. Aisha used the car for km of
employment use and km for personal use.
Aisha is required to travel significantly throughout Ontario for work. She receives a monthly allowance of
$ for travel and no other reimbursements. Throughout the year, she incurred the following costs
related to her employment that have not been reimbursed by her employer:
$ for hotels and accommodations
$ for gas
$ for car insurance
$ for meals while traveling for work
$ for promotional materials for clients
$ for a cell phone used for work
$ for dinners with current and potential clients
Since her job is so demanding, her employer encourages her to take a day or two off when she is traveling
for work. She often invites her spouse to join her at the hotels for these days. Consequently, of the
hotel and accommodation costs are for days when she is relaxing with her spouse after a work trip.
In addition to her employment, Aisha enjoys a side hustle making and selling candles on Etsy. By her
calculations, she earned net income of $ from her candle business. Included in her net income
computation are the following items:
$ for raw materials
$ for packaging & shipping
$ for miscellaneous expenses
$ for a new laptop
$ for depreciation
During a weekend trip with her spouse to Blue Mountain Resort to celebrate their anniversary, Aisha had
an informal conversation with the owner of the General Store about the possibility of selling her candles
in their store. Although nothing formal came of the discussion, she expensed the $ cost of the trip.
Aisha is dedicated to growing her candle business and plans to expand her product line in the coming
year. To support this goal, she expensed $ on tickets to the Crafting Expo in Toronto, where she aimed
to meet other suppliers and explore new equipment options.
Aisha uses a portion of her home exclusively for her candle business. This space, which is square feet,
is dedicated to activities such as production, storage, and administrative tasks. Her entire home is
square feet. She incurs various homerelated expenses annually, including $ for utilities, $ for
mortgage interest, $ for home insurance, $ for property taxes, and $ for maintenance and
repairs. Additionally, she spends $ annually on office supplies. None of these items have been
considered in computing her net income.
To increase her production capacity, Aisha purchased a new candlemaking machine for $ that will
be used in the manufacturing and processing of her candles. She also bought new furniture for her home
office, including a desk, chair, and storage cabinets, for a total cost of $ To deliver her orders to
local stores and transport goods to the post office for online sales, Aisha bought a van for $ which
is used for business purposes. Additionally, she upgraded her labeling equipment, spending $
on a printer, $ on ink, and $ on label stickers. She sold her old printer for $ which she had
purchased for $ Aisha had opening undepreciated capital cost balances as of January of $ for
Class and $ for Class
As Aisha's tax consultants, analyze the provided information to determine the tax implications and
calculate her taxable income. Consider all items mentioned. Highlight if any details are unclear or if
additional information is needed from Aisha.
Problem : On August Ms Bubkeh sold shares of Hundt Ltd a public corporation, for $
per share. Her trading history in these shares was as follows:
May purchased shares @ $ per share
$ for packaging & shipping
$ for miscellaneous expenses
$ for a new laptop
$ for depreciation
During a weekend trip with her spouse to Blue Mountain Resort to celebrate their anniversary.
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