Reference no: EM133483355

Question 1: Rob's income for the year is as follows:

Salary gross           $94,000

Less: CPP and El contributions (Note: CPP enhance portion is $461)      (4,453)

Add: bonus based on his sales volume       10,000

                                                            $99,547

Rob keeps track of his mileage and drives mostly for work. During this year, he has driven 34,000 km for work and only 6,000 km for personal use. His employer has provided him with a car - a 4X4 Jeep. The company leased his 4×4 from Jeep on January 1, 2022, for $900 per month, plus HST for a total of $1017 for an annual total of $12,204 which excludes insurance of $1,200. The manufacturer's suggested list price for the vehicle was $45,000. The operating cost for the year paid directly by the employer was $5,000 including GST but excluding parking. Rob reimbursed his employer 5 cents for every kilometer of personal use. Assume the rate per km is 29 cents for operating costs.

The company does not give him an office. Thus, he has partitioned a workspace in his home for his office. The office space takes up about 20% of the home and is used for no other purpose, except when his dog Max gets into it and makes a mess.

The costs associated with his office are as follows:

Gas and hydro                                $4,000

Cell phone service-monthly fee           5,000

Mortgage interest                            6,000

Long-distance calls for work              1,000

Realty taxes                                    3,200

Computer equipment needed for work    2,500

Repairs and maintenance                    3,000

Contents and property insurance         100

Supplies for the office                         400

Under Rob's contract of employment, he is required to maintain his own office

Required:

Question: Compute Rob's NET INCOME. Show all of your work, and present it showing each item of income or expenses in the proper order.