Robs income for the year is as follows:
Salary gross | $94,000 |
Less: CPP and El contributions (Note: CPP enhance portion is $461) | (4,453) |
Add: bonus based on his sales volume | 10,000 |
| $99,547 |
Rob keeps track of his mileage and drives mostly for work. During this year, he has driven 34,000 km for work and only 6,000 km for personal use. His employer has provided him with a car a 4X4 Jeep. The company leased his 44 from Jeep on January 1, 2022, for $900 per month, plus HST for a total of $1017 for an annual total of $12,204 which excludes insurance of $1,200. The manufacturer's suggested list price for the vehicle was $45,000. The operating cost for the year paid directly by the employer was $5,000 including GST but excluding parking. Rob reimbursed his employer 5 cents for every kilometer of personal use. Assume the rate per km is 29 cents for operating costs.
The company does not give him an office. Thus, he has partitioned a workspace in his home for his office. The office space takes up about 20% of the home and is used for no other purpose, except when his dog Max gets into it and makes a mess.
The costs associated with his office are as follows:
Gas and hydro | $ 4,000 |
Cell phone service-monthly fee | 5,000 |
Mortgage interest | 6,000 |
Long-distance calls for work | 1,000 |
Realty taxes | 3,200 |
Computer equipment needed for work | 2,500 |
Repairs and maintenance | 3,000 |
Contents and property insurance | 100 |
Supplies for the office | 400 |
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Under Robs contract of employment, he is required to maintain his own office
Required:
Compute Robs NET INCOME. Show all of your work, and present it showing each item of income or expenses in the proper order.
