On January 2, 2020, Ms. Shirley Kantor moves from London, Ontario, to Thunder Bay, Ontario, in order to begin employment with Northern Enterprises Ltd. (NEL). Her salary for the year was $142,000. NEL withheld the following amounts from her earnings: Other Information:
1. Shirley's moving expenses total $6,800. NEL reimbursed Shirley for 100 percent of these costs.
2. For the year ending December 31, 2020, Shirley was awarded a bonus of $32,000. Of this total, $25,000 was paid during 2020, with the remainder payable in January, 2021.
3. NEL provided Shirley with a car to be used in her employment activities and paid the operating costs for the year that totalled $8,100. The cost of the car was $39,550, including HST of $4,550. The car was available to Shirley throughout 2020. She drove a total of 63,000 kilometers. This included 8,000 kilometers of personal use.
4. In negotiating her new position with NEL, Shirley had asked for a $50,000 interest free loan as one of her benefits. NEL's human resources department indicated that the CEO would not approve any employee loans. However, they agreed to advance $50,000 of her 2021 salary as of November 1, 2020.
5. In her employment related travels, Shirley has accumulated over 100,000 Aeroplan points. During 2020, she and her partner Diane used 50,000 of these points for a weekend flight to New York City. If she had purchased them, the tickets would have cost a total of $940.
6. NEL provided Shirley with the following additional benefits: 7. Shirley's previous employer was a Canadian controlled private corporation. In 2019, she was granted options to buy 500 of the company's shares at $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, Shirley exercised these options. At this time the fair market value of the shares was $28 per share. Shirley immediately sells the shares for $28 per share.
8. Shirley 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. During 2020, her expenditures for computer related supplies totalled $150.
Required: Determine Shirley's net employment income for the year ending December 31, 2020.

Question

On January 2, 2020, Ms. Shirley Kantor moves from London, Ontario, to Thunder Bay, Ontario, in order to begin employment with Northern Enterprises Ltd. (NEL). Her salary for the year was $142,000. NEL withheld the following amounts from her earnings:  Other Information:
1. Shirley's moving expenses total $6,800. NEL reimbursed Shirley for 100 percent of these costs.
2. For the year ending December 31, 2020, Shirley was awarded a bonus of $32,000. Of this total, $25,000 was paid during 2020, with the remainder payable in January, 2021.
3. NEL provided Shirley with a car to be used in her employment activities and paid the operating costs for the year that totalled $8,100. The cost of the car was $39,550, including HST of $4,550. The car was available to Shirley throughout 2020. She drove a total of 63,000 kilometers. This included 8,000 kilometers of personal use.
4. In negotiating her new position with NEL, Shirley had asked for a $50,000 interest free loan as one of her benefits. NEL's human resources department indicated that the CEO would not approve any employee loans. However, they agreed to advance $50,000 of her 2021 salary as of November 1, 2020.
5. In her employment related travels, Shirley has accumulated over 100,000 Aeroplan points. During 2020, she and her partner Diane used 50,000 of these points for a weekend flight to New York City. If she had purchased them, the tickets would have cost a total of $940.
6. NEL provided Shirley with the following additional benefits:  7. Shirley's previous employer was a Canadian controlled private corporation. In 2019, she was granted options to buy 500 of the company's shares at $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, Shirley exercised these options. At this time the fair market value of the shares was $28 per share. Shirley immediately sells the shares for $28 per share.
8. Shirley 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. During 2020, her expenditures for computer related supplies totalled $150.
Required: Determine Shirley's net employment income for the year ending December 31, 2020.

Quizplus · Accepted Answer

The Answer of On January 2, 2020, Ms. Shirley Kantor moves from London, Ontario, to Thunder Bay, Ontario, in order to begin employment with Northern Enterprises Ltd. (NEL). Her salary for the year was $142,000. NEL withheld the following amounts from her earnings:  Other Information:
1. Shirley's moving expenses total $6,800. NEL reimbursed Shirley for 100 percent of these costs.
2. For the year ending December 31, 2020, Shirley was awarded a bonus of $32,000. Of this total, $25,000 was paid during 2020, with the remainder payable in January, 2021.
3. NEL provided Shirley with a car to be used in her employment activities and paid the operating costs for the year that totalled $8,100. The cost of the car was $39,550, including HST of $4,550. The car was available to Shirley throughout 2020. She drove a total of 63,000 kilometers. This included 8,000 kilometers of personal use.
4. In negotiating her new position with NEL, Shirley had asked for a $50,000 interest free loan as one of her benefits. NEL's human resources department indicated that the CEO would not approve any employee loans. However, they agreed to advance $50,000 of her 2021 salary as of November 1, 2020.
5. In her employment related travels, Shirley has accumulated over 100,000 Aeroplan points. During 2020, she and her partner Diane used 50,000 of these points for a weekend flight to New York City. If she had purchased them, the tickets would have cost a total of $940.
6. NEL provided Shirley with the following additional benefits:  7. Shirley's previous employer was a Canadian controlled private corporation. In 2019, she was granted options to buy 500 of the company's shares at $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, Shirley exercised these options. At this time the fair market value of the shares was $28 per share. Shirley immediately sells the shares for $28 per share.
8. Shirley 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. During 2020, her expenditures for computer related supplies totalled $150.
Required: Determine Shirley's net employment income for the year ending December 31, 2020.