Problem 1: Chapter 3

1. Ryan is an accountant who works for Rocky Road Ltd, which is a public company. Heearns $72,000 in wages during the 2019 year. His employer withheld $2,732 of CPPfrom his paycheque, $856 of EI, and $10,000 of income tax, so that he only received$58,412 cash throughout the year.

2. Ryan moved during the year for work. It was an eligible relocation. His employerreimbursed the loss on the sale of his old residence. The amount of the lossreimbursement was $45,000.

3. Ryan was provided a private health care plan for his family. The employer paid $2,000 ofpremiums for this plan. He also earned a cash bonus of $900 for being the hardestworking employee during the year. Additionally, he received a large painting as aChristmas present from his employer, which has a value of $800.

4. Ryan went on a work trip to Florida to go to several conferences. His trip was 100% foremployment purposes. He also brought his wife and daughter along, and the two ofthem enjoyed going to the beach in Florida for several days while Ryan attended hisconferences. Ryan's employer paid for the plane tickets for all three of them, which cost$3,000 each.

5. Ryan wanted to improve his skillset and requested that his employer pay for him to takeseveral courses. His employer paid for him to take a bookkeeping/accounting course for$1,250. Additionally, Ryan is very interested in starting a side hustle as an InstagramInfluencer. His employer also agreed to pay for him to take an Instagram InfluencerMarketing 101 course to reward him for all his hard work, since Ryan had a personal

interest in it. The tuition cost $2,100. The bookkeeping course related to his workwhereas the Instagram influencer course did not.

6. Ryan was also provided with an employer-owned automobile. The vehicle was availableto him throughout the year. He drove the vehicle 31,000 kilometres this year, 2,500kilometres of which were for employment purposes. The vehicle was purchased in 2016for $50,000, plus $6,500 HST. His employer also pays for all of the vehicle operatingcosts, which totalled $17,000 this year.

7. In 2017, Ryan was granted stock options from his employer to buy 2,000 of hisemployer's shares at a price of $50 per share. On the grant date, the shares weretrading at $55 per share. In November 2019, he exercises all of the options when theshares are trading at $80 per share. He still owns all of these shares at the end of 2019.

8. Rocky Road Ltd. contributed $7,250 to Ryan's Defined Contribution Registered PensionPlan (RPP) during the year. In accordance with his pension plan agreement, Ryan contributed $3,250 to his own RPP during the year, as well.

Required: Compute Ryan's 2019 net employment income. Answer on the excel responsesheet, in the yellow boxes on the "problem 1" tab. Show any additional work in the green spaceindicated on the response sheet.

?If you are unsure of something, please make an assumption and list your assumptions in the green space provided for each question, along with your supporting calculations.?

Fill in the appropriate employment income inclusions and deductions in the yellow boxes beside each relevant line item. Inclusions should be entered as a positive number; deductions should be entered as a negative number. Your additional work and notes (required for this question) should be entered in the green space. If a particular line item does not impact employment income because it is not taxable or deductible, enter 0 beside it in the yellow box. Show additional work & notes here (required for this question): 1. Employment income 2. Eligible housing loss reimbursement 3. Private health care plan 3. Cash bonus 3. Painting- Christmas present 4. Plane tickets to Florida 5. Bookkeeping/ accounting course 5. Instagram Influencer Marketing 101 course 6. Automobile- Standby charge 6. Automobile- Operating cost benefit 7. Stock options- employment benefit 8. Registered pension plan- employer contributions 8. Registered pension plan- Johnathan's contributions Net employment income 0.00 formulized- do not type over