Reference no: EM133125714
Question - Asha became Director of Accounting for Montreal Bagels Company effective March 1, 2021 with the following items included in her compensation:
Asha received the outstanding employee award for October 2021. Besides a plaque, the award came with an Amazon gift card for $250.
Asha has two children aged 2 and 4 whom she leaves with the employer-provided free day care in a facility on company property, which is not open to the public. She estimates that she would have to pay an annual minimum of $8,235 per child for day care without the facility.
The company offers all of its employees a 10% discount on full-price food. Over the year Asha purchased $500 worth of food and received discounts totalling $50. The discounted price was greater than the cost to the company.
The company provided Asha with a car to be used in her employment duties. In addition, the company paid the 2021 operating costs of $9,250. The car was purchased, used, from a car dealer for $23,600 including GST of $1,120. The car was available to her for the entire year. She drove 81,000 km of which 6,880 km was for personal use.
The company provided Asha with takeout meals wotrh $1,200 while working infrequently required overtime
An annual salary of $138,000 per year
Company payment, valued at $4,400 for her membership to the Mandarin Golf and Country Club
Company contribution of 6% of her salary to a defined benefit registered pension plan
Company payment, valued at $1,500, to Financial Planners Inc. for providing counselling services to Asha with respect to her financial situation.
Company loan of $33,000 to help finance the purchase of a new boat. The loan will bear interest at 0.75% per year, payable monthly and was made on April 1, 2021.
Company contributions made on her behalf to the Canada Pension Plan and Employment Insurance valued at $3,100
Required - Calculate Asha's income from employment for 2021. Assume the prescribed rate of interest for employee loans is 3.5% throughout the year. Ignore any effects of a leap year. If an item is not included as employment income, indicate that in your calculation with a value of zero and briefly explain why you have excluded it. Show all calculations.