Homework Problem 3-8, 3-10

Homework Problem 3-8, 3-10 - Solution to Problem 3:10...

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Solution to Problem 3:10 Calculate Mr. Brooks’ net employment Income: Gross Salary $53,000 Bonus (Only amount received) 6,500 Disability Insurance Receipts 4,200 Personal Benefit on Car ( See Note ) 1,034 Stock Option Benefit [($28-$23)(200)] 1,000 Home Relocation Loan Benefit ( See Note ) 625 RPP Contributions ( 2,800) Union Dues ( 240 ) Net Employment Income $63,319 Items not deductible in the calculation of employment income: Income Tax Withheld CPP and EI payments (tax credits) Donations to the United Way (tax credits) Stock purchases through employer’s stock purchase plan Fees paid to a financial planner Life insurance premiums
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Mr. Brooks’ Taxable Benefit on the Company Car: Note that Mr. Brooks leaves the car with the employer when he is not using the car. Therefore during the current year, when Mr. Brooks was in the hospital for two months, he did not have the use of the company vehicle. He had only 10 months usage. Mr. Brooks pays the employer $1,000 towards the
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This note was uploaded on 02/18/2011 for the course ECON 101 taught by Professor Professor during the Spring '11 term at American University of Antigua.

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Homework Problem 3-8, 3-10 - Solution to Problem 3:10...

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