Reference no: EM132907418

Question - Deborah Ekert is employed as a salesperson and receives some of her compensation in the form of commissions. During the current year, her salary totaled $86,000 and her commissions totaled $8,800. Her total salary is $94,800 . The car is used 100% for employment purposes only. Ms. Ekert meets the conditions for deducting employment income expenses. Her employment related expenses during this period were as follows:

Capital Cost Allowance On Car$ 2,910Interest On Car Loan  1,425Traveling Expenses 10,500Promotion and Advertising  5,500Client Entertainment [(1/2)(Actual Costs of $5,200)]  2,700Total Available Deductions$23,035

Required -

a. What is the maximum amount of employment expenses that Ms. Ekert can claim as a commissioned salesperson for 2020? Show and label all calculations.

b. What is the maximum amount of employment expenses that Ms. Ekert can claim for 2020.

c. After deducting employment expenses, what is the minimum amount of net employment income that Ms. Ekert can claim on her 2020 personal tax return. Show and label all calculations.