Ursula incurred the following expenses out of pocket: Car operating expenses (January 1 to June 30)...
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Ursula incurred the following expenses out of pocket: Car operating expenses (January 1 to June 30) Transportation (other than car) and accommodation in Canada Client entertainment meals Advertising and promotion Tablet computer $ 6,000 $ 5,000 $ 1,000 $ 3,000 $ 700 Ursula was granted an option to acquire 1,000 shares of Deco for $15 per share. At that time, Deco shares were trading for $15 a share. In December 2021, when Deco shares were trading for $18 per share, Ursula exercised the option and acquired 1,000 shares. Ursula did not sell any shares in 2021. Required: Determine Ursula's employment income for tax purposes for the 2021 taxation year. Provide a brief explanation for any amounts you have purposely excluded from the calculation. Ursula incurred the following expenses out of pocket: Car operating expenses (January 1 to June 30) Transportation (other than car) and accommodation in Canada Client entertainment meals Advertising and promotion Tablet computer $ 6,000 $ 5,000 $ 1,000 $ 3,000 $ 700 Ursula was granted an option to acquire 1,000 shares of Deco for $15 per share. At that time, Deco shares were trading for $15 a share. In December 2021, when Deco shares were trading for $18 per share, Ursula exercised the option and acquired 1,000 shares. Ursula did not sell any shares in 2021. Required: Determine Ursula's employment income for tax purposes for the 2021 taxation year. Provide a brief explanation for any amounts you have purposely excluded from the calculation.
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Answer rating: 100% (QA)
To determine Ursulas employment income for tax purposes for the 2021 taxation year we need to consider her various expenses and the option exercise Ca... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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