Andy worked for High Speed Bikes Inc. from March 1st to December 31st during 20x1. He earned a monthly base salary of $4,000, plus 1% commission on all of his sales. During 20x1, Andy's sales
totaled $800,000. Andy was required to pay for his employment expenses. He traveled out of his
city most days in order to sell to customers in surrounding towns. He received a monthly allowance of $500 to cover his traveling costs (which has been accurately recognized as 'unreasonable'). Andy a employer each contributed $2,000 to the company's registered pension plan in 20x1.
Andy provided you with the following receipts for 20x1: Andy purchased a new vehicle for work during the year, and drove it a total of 25,000 kms while em High Speed Bikes. 12,000 of these kilometres were for business. The vehicle cost Andy $32,000 plus 5% and PST of 5%. Work-related interest payments on the car loan totaled $200 per month.
Required:
Calculate Andy's employment income for 20x1 in accordance with Section 3 of the Income Tax Act.

Question

Andy worked for High Speed Bikes Inc. from March 1st to December 31st during 20x1. He earned a monthly base salary of $4,000, plus 1% commission on all of his sales. During 20x1, Andy's sales
totaled $800,000. Andy was required to pay for his employment expenses. He traveled out of his
city most days in order to sell to customers in surrounding towns. He received a monthly allowance of $500 to cover his traveling costs (which has been accurately recognized as 'unreasonable'). Andy a employer each contributed $2,000 to the company's registered pension plan in 20x1.
Andy provided you with the following receipts for 20x1:  Andy purchased a new vehicle for work during the year, and drove it a total of 25,000 kms while em High Speed Bikes. 12,000 of these kilometres were for business. The vehicle cost Andy $32,000 plus 5% and PST of 5%. Work-related interest payments on the car loan totaled $200 per month.
Required:
Calculate Andy's employment income for 20x1 in accordance with Section 3 of the Income Tax Act.

Quizplus · Accepted Answer

The Answer of Andy worked for High Speed Bikes Inc. from March 1st to December 31st during 20x1. He earned a monthly base salary of $4,000, plus 1% commission on all of his sales. During 20x1, Andy's sales
totaled $800,000. Andy was required to pay for his employment expenses. He traveled out of his
city most days in order to sell to customers in surrounding towns. He received a monthly allowance of $500 to cover his traveling costs (which has been accurately recognized as 'unreasonable'). Andy a employer each contributed $2,000 to the company's registered pension plan in 20x1.
Andy provided you with the following receipts for 20x1:  Andy purchased a new vehicle for work during the year, and drove it a total of 25,000 kms while em High Speed Bikes. 12,000 of these kilometres were for business. The vehicle cost Andy $32,000 plus 5% and PST of 5%. Work-related interest payments on the car loan totaled $200 per month.
Required:
Calculate Andy's employment income for 20x1 in accordance with Section 3 of the Income Tax Act.

Andy Worked for High Speed Bikes Inc