Reference no: EM132825150

On january 2, 2020, Ms. Elin begins employment with ABC Co. The items below are relevant to her employment income for the 2020 taxation year

1. Elin received a salary for 2020 of $89,000.

2. For the year ending December 31, 2020, Elin was awarded a bonus of $32,000. Of this total, $20,000 was paid during 2020, with the remainder payable in January 2021.

3.  ABC Co. provided Elin with a car to be used in her employment activities and paid the operating costs for the year that totaled $8,100. The cost of the car was $39500 including HST of $4,550. The car was available to Elin throughout 2020. She drove a total of 23000 kilometres. This included 8.000 km of personal use

4.  In negotiating her new position with ABC, Elin received a $50,000 interest free loan as one of her benefits. Funds were provided on her very first day. Assume tha the CRA's relevant prescribed rate was equal to 1% for all 4 quarters of 2020.

5. ABC provided Kayleigh with a membership to a local golf and country club. They paid the membership fees of $12.800. Kayleigh does not entertain clert so only user the club for personal purposes.

6. Elin's previous employer was a Canadian controlled private corporation. In 2019, she was granted options to buy 500 of the company's shares a $20 per share. This option price was higher than the estimated fair market value of the company's shares at the time the options were granted. On January 2, 2020, Elin exercised thee options. At this time the fair market value of the shares was $28 per share. Elin immediately sells the shares for $28 per share

7. Elin was required by her employer to acquire a laptop computer to be used in her employment duties. At the beginning of 2020, she purchased a computer at a cost of $1,356, including HST of $256.

8. During 2020, Kayleigh paid union dues in the amount of 800

Required:

Problem 1: Determine Elin's net employment income for the year ending December 31,2020.