Mr. Joplin sells a line of computer software for a company in Western Canada. In 2023, he was paid a base salary of $56,000 and received sales commissions of $88,200. He did not an allowance, nor was he reimbursed by his employer for any of his expenses. During the year, Mr. Joplin has the following employment-related expenses. View the expenses. View the additional information. Required Determine Mr. Joplin's employment income for 2023. Ignore all GST/HST and PST implications. First, calculate the deductible CCA on the automobile used by Mr. Joplin. Enter the employment-related usage proportion as a percentage. Full capital cost allowance Employment-related usage proportion Deductible CCA on automobile Expenses Airline tickets - X $ 2,380 400 Additional Information - Assume that $390 of the client entertainment represented the cost of Mr. Joplin's meals with the remaining amounts attributable to clients. Further assume that all of the client entertainment was incurred while more than 12 consecutive hours away from the municipality where the employer's place of business is located. The new automobile was purchased on January 5, 2023, and replaced an automobile that Mr. Joplin had leased for several years. In 2023, Mr. Joplin drove a total of 48,000 kilometres of which 38,400 kilometres were for employment purposes and 9 600 kilometres were for personal use. The maximum capital cost
Mr. Joplin sells a line of computer software for a company in Western Canada. In 2023, he was paid a base salary of $56,000 and received sales commissions of $88,200. He did not an allowance, nor was he reimbursed by his employer for any of his expenses. During the year, Mr. Joplin has the following employment-related expenses. View the expenses. View the additional information. Required Determine Mr. Joplin's employment income for 2023. Ignore all GST/HST and PST implications. First, calculate the deductible CCA on the automobile used by Mr. Joplin. Enter the employment-related usage proportion as a percentage. Full capital cost allowance Employment-related usage proportion Deductible CCA on automobile Expenses Airline tickets - X $ 2,380 400 Additional Information - Assume that $390 of the client entertainment represented the cost of Mr. Joplin's meals with the remaining amounts attributable to clients. Further assume that all of the client entertainment was incurred while more than 12 consecutive hours away from the municipality where the employer's place of business is located. The new automobile was purchased on January 5, 2023, and replaced an automobile that Mr. Joplin had leased for several years. In 2023, Mr. Joplin drove a total of 48,000 kilometres of which 38,400 kilometres were for employment purposes and 9 600 kilometres were for personal use. The maximum capital cost
Chapter9: Deduct Ions: Employee And Self-employed - Related Expenses
Section: Chapter Questions
Problem 31P
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Transcribed Image Text:Mr. Joplin sells a line of computer software for a company in Western Canada. In 2023, he was paid a base salary of $56,000 and received sales commissions of $88,200. He did not receive
an allowance, nor was he reimbursed by his employer for any of his expenses. During the year, Mr. Joplin has the following employment-related expenses.
View the expenses. View the additional information.
k
Required
Determine Mr. Joplin's employment income for 2023. Ignore all GST/HST and PST implications.
First, calculate the deductible CCA on the automobile used by Mr. Joplin. Enter the employment-related usage proportion as a percentage.
Full capital cost allowance
Employment-related usage proportion
Deductible CCA on automobile
Expenses
Airline tickets
Office supplies and shipping expenses
Purchase of laptop computer
Client entertainment
Cost of new automobile (not zero-emission)
Operating expenses of automobile
$ 2,380
420
2,095
1,770
47,000
10,700
X
Additional Information
Assume that $390 of the client entertainment represented the cost of Mr. Joplin's
meals with the remaining amounts attributable to clients. Further assume that all of
the client entertainment was incurred while more than 12 consecutive hours away
from the municipality where the employer's place of business is located.
The new automobile was purchased on January 5, 2023, and replaced an
automobile that Mr. Joplin had leased for several years. In 2023, Mr. Joplin drove a
total of 48,000 kilometres of which 38,400 kilometres were for employment
purposes and 9,600 kilometres were for personal use. The maximum capital cost
allowance (CCA) that could be claimed for the automobile if it was used 100% of
the time for employment purposes is $15,300.
In addition to expenditures to earn employment income, Mr. Joplin has the
following disbursements:
475
645
Alberta Blue Cross Medical Insurance Premiums
Group Life Insurance Premiums
Mr. Joplin indicated that he regularly receives discounts on his emplover's
X
nsw
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