Reference no: EM132857321

Question - Mr. Jason Bond has been employed for many years as a graphic illustrator in Kamloops, British Columbia. His employer is a large publicly traded Canadian Company. During 2019, his gross salary was $82,500. In addition, he was awarded a $20,000 bonus to reflect his outstanding performance during the year. As he was in no immediate need of additional income, he arranged with his employer that none of his bonus would be paid until 2024, the year of his expected retirement.

Other Information: For the 2019 taxation year, the following items were relevant.

1. Mr. Bond's employer withheld the following amounts from his income:

Federal Income Tax $16,000

Employment Insurance Premium 860

Canada Pension Plan Contribution 2,749

United Way Donations 2,000

Registered Pension Plan Contribution 3,200

Payment For Personal Use of Company Car 3,600

2. During the year, Mr. Bond was provided with an automobile owned by employer. The cost of the automobile was $47,500. Mr. Bond drove the car a total of 10,000 kilometers during the year, which only 4,000 kilometers were related to the business of his employer. The automobile was used by Mr. Bond for ten months of the year. During the other two months, he was out of the country, and he was required to return the automobile to the company.

3. During the year, the corporation paid Mega Financial Planners a total of $1,500 for providing counselling services to Mr. Bond with respect to his personal financial situation.

4. In order to assist Mr. Bond in purchasing a ski chalet, the corporation provided him with a five-year loan of $150,000. The loan was granted on October 1 at an interest rate of 1 percent. Mr. Bond paid the corporation a total of $375 in interest for 2019 on January 20, 2020. Assume that, at the time the loan was granted and throughout the reminder of the year, the relevant prescribed rate was 2 percent.

5. Mr. Bond was required to pay professional dues of $1,800 during the year.

6. One June 6, 2019, when Mr. Bond exercised his stock options to buy 1,000 shares of his employer's common stock at a price of $15 per share, the shares were trading at $18 per share. When the options were issued, the shares were trading at $12 per share. During December,2019, the shares were sold for $20 per share.

Required - Calculate Mr. Bond's minimum net employment income for the year ending December 31, 2019. Provide reasons for omitting items that you have not included in your calculations. Ignore GST and PST considerations. THIS IS CANADIAN TAXATION - all information is included.