Reference no: EM132926877
Question - Ms. Tanja Umstead is 46 years old and lives in Richmond, British Columbia. She is in good health and works in the sales department of a large publicly traded company.
1. Tanja's salary compensation for 2020 is $93,500. In addition, she was awarded a year end bonus of $12,000, all of which is payable in January 2021.
2. Tanja's employer sponsors a defned beneft registered pension plan. During 2020, Tanja and her employer each contribute $4,150 to the plan. In addition, her employer withheld maximum EI contributions of $856 and maximum CPP contributions of $2,898.
3. Her employer offers to pay the tuition for employees taking foreign language courses. Tanja is taking an intensive course in spoken Chinese at a British Columbia university. The tuition fee for the course is $3,600, all of which is paid for by her employer. The tuition payment is to be included in her employment income as a taxable beneft. The duration of the course is eight months, and Tanja must purchase her own textbooks for $150.
4. Tanja is provided with disability insurance by an employer sponsored plan. During 2020, as a consequence of an automobile accident, she was unable to go to work for one month and receives benefts of $6,500. Starting in 2018, Tanja has been contributing $340 per year for the plan's coverage. Her employer makes a matching contribution each year.
5. Tanja's employer provides her with an automobile that was purchased several years ago at a cost of $39,500. During 2020, the car is driven 41,000 kilometres, 34,000 of which were for employment-related travel. Tanja is required to pay her own operating costs, which for 2020 totaled $7,240. Except for the one month that she was off from work, the car was available to Tanja throughout the year. During the one month that she was off, the car was left in her employer's garage.
6. Tanja's employer provides all of its employees with fnancial counseling services. The cost to the company of the services provided to Tanja was $450. 7. As a result of winning a sales contest, Tanja received a one week trip to Las Vegas. The value of this trip in Canadian dollars was $5,620. 8. Several years ago, Tanja received options to acquire 250 shares of her employer's common stock at a price of $25 per share. When the options were granted, the shares were trading at $25 per share. During 2020, Tanja exercises all of these options. On the exercise date, the shares are trading at $32 per share. Tanja is still holding the shares at the end of the year
Required - Calculate Tanya's 2020 net income / taxable income for tax purposes?