The following information for 2018 has been presented to you by Paula Promoter, the new is...

  

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The following information for 2018 has been presented to you by Paula Promoter, the new is president of marketing for a public Canadian ol compary. Overpriced Petroleum Limited Paula who 52 years old and now lives in Calgary, travels extensively across Canada. Paula, whose dutles invove ue negotiating of contracts, began her employment with Overpriced Petroleum on January 1, 2018 Receipts and Fringe Benefits-2018 Salary-net of payroll deductions... Director fees Receipt of an amount, not to compete, from former employer Termination payment from former employer Travel allowance (Nate (1) below): Accommodation and meals e $200 per day for 150 days Car operating cost allowance 45e per kilometre plus 810 per day of travelling for business travel only (9.000 kilometres) for 150 days Income protection receipts recelved from Regal Assurance (Note (2) below) $ 50,450 5,000 50.000 8,000 30,000 5,550 15.000 Benefits paid by the corporation Registered pension pian Extended health care- Liberty Mutual Group income protection premdums - Regal Assurance (Note (2) below) Membership fee in Petroleum Club (membership required by all employees) - initiation fee -annual fee Moving costs (Note (3) below) Group term life insurance (coverage is 8300,000) Loans by company (Note (4) below) $ 4,000 2,125 1,050 1,000 2.500 42,000 600 160.000 5213.275 $377.276 Payroll deductions and selected disbursements -2018 Payroll deductilons: Income taxes withheld Registered pension plan (defined benefit) current contribution Canada Pension Plan contributions Employment Insurance contributions Group income protection premums (Note (2) $ 41.001 4.000 2,594 858 1,050 3 49.403 Purchased 2.000 common shares on July 1, 2018 under a stock option plan at a price of $25 per share. Fair market value of shares at the date of purchase was $35. Fair market value of the shares was $25 per share on the date when the option was granted Legal fees paid in connection with the collection of the 550,000 non- competition recelpt from her previous employer. 50,000 5,000 Notes and Additional Information (1) Paula's actual travelling and car expenses, which she is required to pay according to the terms of her employment contract, are as follows Meals Accommodation. Travel costs (other than car see below) reimbursed by company Car expenses (9,000 kilometres for business purposes out of total kilometres of 16.000): Gasoline Maintenance Auto accident costs while on a business trip Insurance. Licence Interest paid on car loan (see Note (4), below) SI1,250 23,750 6,000 $1,700 800 1,600 1,800 90 300 $6,290 uOIT TransEr Assignment 4 (2) The company paid 80% of the premium to Regal Assurance re income protection pay- ment. During 2018, Paula received $15,000 in periodic payments in respect of an eight- week Iliness. (3) Athough Pauia started to work for Overpriced Petroleum on January 1. 2018, her famuily did not move to Calgary from Toronto until February 28, 2018. The compary paid for all the moving costs of $12,000, an actual loss on the sale of Paula's Toronto home of $25,000 and a disruption allowance of $5,.000 (4) Paula obtained two loans from the compary as part of her employment contract (A) Loan of $160,000, dated July 1, 2018, to acquire a new home in Caigary. The loan bears annual interest at 2% and is repayable over a 25-year period in equal annual instalments on the anniversary date of July 1. Interest is payable on the same date. (b) Loan of 810,000, dated January 1, 2018, to assist in the acquisition of a car acquired in early January 2018 for $35.000 (excluding GST, no PST in Alberta) to be used in connection with her duties of emplayment. The loan bears annual interest at 3%, and is repayable over the next three years in equal annual instalments. Interest is PRyable December 31 each year. Paula paid the interest for 2018 on time on Deceniber 31. 2018 (NOTE: Fur simplicity you may assume that the prescribed interest rate is a constant 4% for all এarters) Determine Paula Promoter's employment income for 2018 in accordance with Subdivision a of Division B. Ignore the effects of a leap year in your answer Indicate why you have excluded any of the above amounts from your answer The following information for 2018 has been presented to you by Paula Promoter, the new is president of marketing for a public Canadian ol compary. Overpriced Petroleum Limited Paula who 52 years old and now lives in Calgary, travels extensively across Canada. Paula, whose dutles invove ue negotiating of contracts, began her employment with Overpriced Petroleum on January 1, 2018 Receipts and Fringe Benefits-2018 Salary-net of payroll deductions... Director fees Receipt of an amount, not to compete, from former employer Termination payment from former employer Travel allowance (Nate (1) below): Accommodation and meals e $200 per day for 150 days Car operating cost allowance 45e per kilometre plus 810 per day of travelling for business travel only (9.000 kilometres) for 150 days Income protection receipts recelved from Regal Assurance (Note (2) below) $ 50,450 5,000 50.000 8,000 30,000 5,550 15.000 Benefits paid by the corporation Registered pension pian Extended health care- Liberty Mutual Group income protection premdums - Regal Assurance (Note (2) below) Membership fee in Petroleum Club (membership required by all employees) - initiation fee -annual fee Moving costs (Note (3) below) Group term life insurance (coverage is 8300,000) Loans by company (Note (4) below) $ 4,000 2,125 1,050 1,000 2.500 42,000 600 160.000 5213.275 $377.276 Payroll deductions and selected disbursements -2018 Payroll deductilons: Income taxes withheld Registered pension plan (defined benefit) current contribution Canada Pension Plan contributions Employment Insurance contributions Group income protection premums (Note (2) $ 41.001 4.000 2,594 858 1,050 3 49.403 Purchased 2.000 common shares on July 1, 2018 under a stock option plan at a price of $25 per share. Fair market value of shares at the date of purchase was $35. Fair market value of the shares was $25 per share on the date when the option was granted Legal fees paid in connection with the collection of the 550,000 non- competition recelpt from her previous employer. 50,000 5,000 Notes and Additional Information (1) Paula's actual travelling and car expenses, which she is required to pay according to the terms of her employment contract, are as follows Meals Accommodation. Travel costs (other than car see below) reimbursed by company Car expenses (9,000 kilometres for business purposes out of total kilometres of 16.000): Gasoline Maintenance Auto accident costs while on a business trip Insurance. Licence Interest paid on car loan (see Note (4), below) SI1,250 23,750 6,000 $1,700 800 1,600 1,800 90 300 $6,290 uOIT TransEr Assignment 4 (2) The company paid 80% of the premium to Regal Assurance re income protection pay- ment. During 2018, Paula received $15,000 in periodic payments in respect of an eight- week Iliness. (3) Athough Pauia started to work for Overpriced Petroleum on January 1. 2018, her famuily did not move to Calgary from Toronto until February 28, 2018. The compary paid for all the moving costs of $12,000, an actual loss on the sale of Paula's Toronto home of $25,000 and a disruption allowance of $5,.000 (4) Paula obtained two loans from the compary as part of her employment contract (A) Loan of $160,000, dated July 1, 2018, to acquire a new home in Caigary. The loan bears annual interest at 2% and is repayable over a 25-year period in equal annual instalments on the anniversary date of July 1. Interest is payable on the same date. (b) Loan of 810,000, dated January 1, 2018, to assist in the acquisition of a car acquired in early January 2018 for $35.000 (excluding GST, no PST in Alberta) to be used in connection with her duties of emplayment. The loan bears annual interest at 3%, and is repayable over the next three years in equal annual instalments. Interest is PRyable December 31 each year. Paula paid the interest for 2018 on time on Deceniber 31. 2018 (NOTE: Fur simplicity you may assume that the prescribed interest rate is a constant 4% for all এarters) Determine Paula Promoter's employment income for 2018 in accordance with Subdivision a of Division B. Ignore the effects of a leap year in your answer Indicate why you have excluded any of the above amounts from your answer

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Reciepts and payments Salary 50450 Director fee 5000 reciept from former employer 50000 Termination ... View the full answer