Assignment 2

1) Housing Subsidy
Hotel Suite fee 5,000.00
Martha's rent 2,000.00
Martha's Benefit 3,000.00 (6 months rent) 18,000.00

2) Housing Loss
GME Compensation 67,500.00
Allowable amount 15,000.00
Benefit 52,500.00 (50% is taxable) 26,250.00

3) Interest Free Housing Loan

Prescribed Interest 2% x 100,000 x (245/365) 1,342.47
Interest Paid 0.00
Imputed Interest 1,342.47

4) Salary & Bonuses

Salary 175,000.00

5) RPP Contribution
GME Contribution (2,500.00)

6) Medical Coverage
Private medical coverage is not taxable 0.00

7) Non-cash Gifts
Ski pass 1,000.00
non-taxable portion 500.00
500.00
Gift certificate 100.00
Benefit 600.00

8) Grief Counselling
Benefit derived from counselling for mental health is not taxable 0.00

9) Employee Discounts
Benefits relating to corporate discounts are not taxable 0.00

10) Stock Option Benefit

 Exercise price 100.00
FMV (grant) 94.00
FMV (exercise) 123.00

Stock option benefit 50*(123-100) 1,150.00

110(1)(d) Dedeuction - Exercise price>FMV (grant) (575.00)
575.00

11) Recreational Facility / Meals and Drinks

It appears that the Blackcomb membership is only given to
Martha and is therefore taxable 5,000.00

The meals and drinks reimbursement is employment

related since it's used for client meetings, therefore non-taxable 0.00

12) Company Automobile

Standby charge 12,000 * (2%*120,000*12) 17,276.54
(1,667*12)

Operating cost 0.26*12,000 3,120.00

20,396.54

13) Home Office

Monthly Maintenance Fee deduction (5,400)*600/2,222 (1,458.15)
Hyrdo deduction (450)*600/2,222 (121.51)
(1,579.66)

14) Home Allowance

Monthly maintenance allowance 400.00 6 months 2,400.00

NET EMPLOYMENT INCOME 245,484.35