Reference no: EM132476746

Question 1: Q's employer provided her with the following gifts and awards: Golf shirt with employer logo valued at $40; Weekend at a spa valued at $1,000 as reward for meeting sales targets; Holiday season gift (camera) valued at $300; Gift certificate of $80 to a local restaurant in recognition of her birthday. What amount is included in Q's employment income for tax purposes?

Question 2: D is provided with the use of her employer's car throughout the current year. The car was purchased for $30,000 (including tax). The employer also pays for the operating expenses that are $2,600 annually. D drove the car 15,000 km for employment purposes and 13,000 km for personal use. What is the minimum amount to be included in D's employment income for tax purposes in the current year?

Question 3: F is employed by a public corporation. In year 1, F was granted a stock option to acquire 3,000 shares from the treasury of her employer's corporation for $10 a share. At the time of receiving the option the shares were valued at $12 per share. In year 3 F exercised the option and purchased 3,000 shares for $30,000. At the purchase date in year 3 the shares were valued at $13 per share. In year 5 F sold 3,000 shares for $18 per share. What amount is included in F's employment income for tax purposes in year 3?

Question 4: G is employed by a Canadian-controlled private corporation. In year 1, G was granted a stock option to acquire 1,000 shares from the treasury of his employer's corporation for $8 a share. At the time of receiving the option the shares were valued at $10 per share. In year 3, G exercised his option and purchased 1,000 shares for $8,000. At the purchase date in year 3, the shares were valued at $15 per share. In year 5, G sold 1,000 shares for $20 per share. What amount is included in G's employment income for tax purposes in year 3?

Question 5: J was employed as a salesperson and earned a salary of $80,000 and commissions of $3,000 in the current year. He incurred the following expenses to earn his income: Car expense $1,900; Out-of-town travel expenses (excluding car & meals) $2,100; Client meals 4,000; Advertising 2,000. What is the maximum amount that J can deduct in a arriving at employment income for tax purposes?

Question 6: K is required to use her own automobile for employment purposes. She incurred the following expenses in the current year: Gasoline $2,200; Insurance $1,300; Repairs $700; Parking for employment purposes $250; Interest on car loan $3,900 for 12 months; Capital cost allowance $5,000. K drove the car 23,000 km of which 13,000 km were for employment purposes. What is the maximum amount that K is permitted to deduct from employment income in the current year?

Question 7: M is employed as a marketing analyst and required by his employment contract to maintain a home office. His office occupies 10% of the total space in his home. He works 3 days a week in his home office and travels the remaining 2 working days. He incurs the following expenses: New desk $800, telephone (10% of total) $200; Internet (10% of total) $420; Utilities (10% of total) $500; House insurance (10% of total) $150; Mortgage interest (10% of total) $900; Property taxes (10% of total) $740; Maintenance (10% of total) $100. What is the maximum deduction from employment income for tax purposes available to M in the current year?