Agatha earned $35,000 at her job from January 1st - October 10th of 20X4.She accepted a new position with the company in a town 1312 kms away,and began the new job on November 1st,20X4,earning a gross salary of$4000 per month.
Agatha's moving expenses included:
$7,000 for a moving van
$500 in meals en route for Agatha and her 4 year old daughter
$700 in accommodations en route
$4000 ($200 per day)for 20 nights of accommodations and meals in the new location until her apartment was available.(Agatha used the receipt method for these meals.)
$550 in gas receipts
Agatha also received the following amounts in 20X4:
*The support payments are in accordance with Agatha's divorce agreement,which calls for monthly support payments of $1,500 for Agatha and $1,500 for her daughter.
The 20X4 meal and vehicle rates used to calculate travel and meal expenses under the simplified method are:
$17 per meal to a maximum of three meals per day,per person C:\Users\User\Dropbox\Quizplus Parsing Documents\To Be Parsed\M\TB1840,Canadian Income Taxation 2014 2015 Edition by William Buckwold\Test Bank (2014-2015)\Test Bank (2014-2015)\Images\Chapter 09 Other Income,Ot_6.jpg
Required:
Determine Agatha's net income for tax purposes for 20X4,using the aggregate formula to show your work.
Correct Answer:
Verified
Moving expenses:
$7,000 van
$5...
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