90.2K

Verified Solution

Link Copied!

Chegg only allows me to upload one picture per question. There are two pictures needed to complete these questions. The picture below is the SECOND PIC and you will need to connect it with the FIRST PIC. I will give the points as well on the SECOND PIC for the inconvenience. IT WILL BE TITLED: TAX HELP $-$ SECOND PIC NEEDED TO ANSWER FIRST PIC

Other Information:

MI contributed $$5,000$ to the company RPP on behalf of Mr$.$ Chen.

During the period May $1,2024,$ to December $31,2024,$ Mr$.$ Chen earned a salary of $$88,000.$ Of

these earnings, $$84,530$ was paid by the end of $2024$ with the balance paid on January $2,2025.$

The company withheld the following amounts from his salary:

MI provides group medical coverage to all its employees. The private health plan premiums paid

by MI on behalf of Mr$.$ Chen cost $$2,450.$

MI strongly believes that employees who partake in healthy living get sick less often and achieve

higher performance in the workplace. Thus, they have provided Mr$.$ Chen with a fitness

membership at the local YMCA that cost the company $$970$ in $2024.$ They also paid $$575$ for him

to take a sculpting class in October $2024.$ MI supports hobby interests to help maintain the mental

health of its employees.

Mr$.$ Chen exercised his employee stock options on November $1,2024,$ when the shares were

trading at $$17$ each. He has not yet sold his shares and intends to hold them for at least two years.

Mr$.$ Chen spent $$4,500$ in $2024$ to purchase custom knives that he uses solely for his chef duties

at MI$.$ These knives were required to perform his work and if he chooses to leave MI$,$ he will take

the knives with him.

Mr$.$ Chen paid $$800$ in mandatory professional dues in $2024.$ The company does not reimburse

its employees for their professional dues.

Mr$.$ Chen maintains a small home office for collecting, writing and storing his recipes. He does

this on his personal laptop. The workspace occupies $200$ square feet of him $2,000$ square foot

home. The costs associated with his home and various home office expenses include:

Mr$.$ Chen was provided with an automobile that cost $$42,000($HST included$).$ The vehicle was

available to him for the entire eight months he was employed with MI in $2024.$ During this

period, he drove a total of $20,000$ kilometers, $16,000km$ were related to personal use of the

vehicle. MI pays all operating and maintenance costs related to this vehicle.

Answer & Explanation Solved by verified expert

See Answer