Reference no: EM132649194

Question - Aidan is an administrator for a publicly traded Canadian manufacturing company, Monopoly Inc. The following items pertain to his employment information for the 2020 taxation year. For each "question", provide the effect on Aidan's net employment income.

A net inclusion in employment income should be entered in the box as a positive number.

If the item would have no effect on the calculation of employment income, enter the number 0 (zero) in the box.

Question 1: Aidan is an administrator for a publicly traded Canadian manufacturing company, Monopoly Inc. His salary for the year ending December 31, 2020 is $92,579.

QUESTION 2: Monopoly Inc. paid premiums of $2,233 to cover private health care for Aidan in 2020.

QUESTION 3: Monopoly Inc. paid life insurance premiums of $1,603 on Aidan's behalf in 2020.

QUESTION 4: Aidan and his employer share the cost of a group disability plan. For the past 2 years, Aidan has contributed $136 to the plan and Monopoly Inc. has made a matching contribution of $136. In 2020, Aidan was unable to work for a period of 5 weeks due to an accident. The disability plan provided him with benefits of $2,311 periodically over this period to compensate him for lost employment income.

QUESTION 5: During 2020, Aidan was provided with an automobile that was purchased in 2018 by his employer, Monopoly Inc. The cost of the car was $36,563, including all taxes. Monopoly paid $3,736 for the operating costs of the car during 2020. Aidan used the car for 6 months during the year and during the months of non-use, it was returned to Monopoly's premises. During 2020, he drove the car a total of 18,303 kilometers of which 7,123 kilometers were for employment-related travel and the remainder was for personal use. Aidan reimbursed Monopoly $62 per month of use of the automobile.

QUESTION 6: During 2020, Aidan's job was relocated to a new city by Monopoly Inc. and the company reimbursed $2,023 in Aidan's moving expenses.

QUESTION 7: Aidan's employer provided him with a loan of $50,927 at interest rate of 0.2% to aid in the purchase of a home due to his relocation. The funds were provided on September 1, 2020. Aidan paid all of the interest required in 2020 and will begin making principal payments in mid-2021. Assume the prescribed rate for the last 2 quarters of 2020 was 1%.

QUESTION 8: In 2015, Aidan was given options to buy 980 shares of Monopoly's stock at a price of $25.45 per share. At the time the options were issued, the shares were trading at $25.45 per share. On June 1, 2020, Aidan exercised some of his options and purchased 467 shares. At the time of exercise, the shares were trading at $36.7 per share. He is still holding the shares on December 31, 2020.

QUESTION 9: 1. Aidan received the following gifts from Monopoly during 2020:

2. A non-cash long service award for 5 years of service valued at $708A cash Christmas bonus of403A gift basket valued at226.

QUESTION 10: Aidan earned a high performance bonus of $30,112 in 2020. He received 60% of this bonus in December 2020 and will receive the remaining amount in early 2021.

QUESTION 11: Monopoly Inc. contributed $3,911 to Aidan's Registered Pension Plan (RPP) in 2020.