Problem$1.$ An employer provides a car costing $$25000$ t an employee. The car is to be used for business travel and for personal use throughout the year. During the year the employer expends $$5000$ for operating costs relating to insurance, gas, maintenance and repair. During the year, the employee drives the car $30000$ km of which $160000$ km for personal use and $14000$ km is for business use. Compute the taxable benefit for the year.

Problem$2.$ An employee is required to use her own automobile for employment duties. She acquired a new car at the beginning of the year for $$40000($including GST and HST of $8\%)$ and during the year she incurred the following expenses. Gasoline $$2200,$ repairs and maintenance $$400,$ insurance and registration $$800,$ meals while away from the office $$420($$$200$ relates to out of town travel$),$ parking during employment duties $$300$ and interest on loan to acquire car $$3900.$ During the year, the employee drove $26000$ km of which $14000$ were for employment duties and the remaining were personal. Compute the personal and employment expenses.

Problem$\mathrm{.}3.$ An employee has a large, outstanding house mortgage bearing $6\%$ interest. Her employer offers her a $$30000$ loan bearing interest at $1\%.$ The prescribed interest rate designated at the time by the CRA is $4\%.$ The employee is in the $40\%$ tax bracket. Compute the taxable benefit and the tax cost of loan.

Problem. $4.$Ms X is employed by a Canadian public corporation as a middle level manager. Information relating to her financial affairs for a particular year is outlined below.

$1.$ Ms X received a salary of $$40000$ during the year. In addition, she has awarded a bonus of $$5000$for her special efforts during the current year. The payment is to be made in two installments during the following year.

$2.$ Two years earlier, the employer had granted Ms$.$X an option to acquire $500$ shares of public corporation at $$30$ per share. At the time the option was granted, the shares were trading at $$32$ each. During the early part of the current year Ms$.$X exercised the option and acquired $500$ shares. Which at that time had a value of $$35$ per share? I December of the current year, after their value rose unexpectedly, she sold them at $$41$ a share.

$3.$ The company had a generous benefit program and, during the year, provided Ms$.$ X with the following

$$ A contribution to the company pension plan of $$3300$

$$ A group term life insurance premium of $$500$ for $$50000$ of the life insurance for the beneficiaries of her estate.

$$ A membership valued at $$1000$ in a private squash club, to which many of the employer$$s customers belonged.

$$ A company car for personal use throughout the year. $($The car costs the company $$20000,$ including tax: during the year, the company paid $$5000$of operating expenses. The car has driven a total of $20000$ km$,$ of which $11000$ were for personal use$)$

$$ A gift costing $$600($including tax$)$ in honour of Ms X $20$th wedding anniversary. She also

received a watch costing $$400($including tax$)$ as an award for $10$ years of service with the employer.

$4.$ During the year Ms$.$ X made the following payments, some of them were deducted directly from her monthly salary by the employer and paid on her behalf: Employment insurance $$720,$ Canada pension plan $$1807,$ donations to registered charities $$200,$ income tax $$8000,$ contribution to company$$s RPP $$3000$ and interest to the employer of $3\%$ on a $$10000$ loan $($the CRA$$s prescribed interest rate was $5\%)$ $$300.$

$5.$ The contract of employment required that Ms X acquire, at her own expense a small laptop computer to be used while travelling and at home. During the year, she purchased a laptop computer for $$2000$; she also purchased and used $$75$ worth of special computer paper.

$6.$ From time to time, Ms X travelled out of town on behalf of the employer. For this reason, the company provided her with a monthly travel allowance of $$500,$ which she was not required to account for. During the year she spent $$2000$ on airline tickets, $4500$ on meals, and $$1000$ on lodging. This year$$s travel expenses were similar to amounts spent in previous years.

$7.$ Over several weekends during the year Ms$.$X completed a consulting project for her brother$-$in$-$law$$s business, for which she received $$3000.$ Compute the net employment income of Ms$.$x