AQ-Emp-Solution

AQ-Emp-Solution - 1 Convention 5 (3,940) NET EMPLOYMENT...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
ASSIGNMENT QUESTION EMPLOYMENT INCOME SUGGESTED SOLUTION Income Salary $ 45,000 1 Allowance 1,200 1 Award 1,000 1 Standby charge (2% X $16,000 X 6) 1,920 2 Operating benefit [(0.24 X 14,000) - $600] 2,760 2 Group term life premium 100 1 51,980 Deductions Registered pension plan $2,800 1 Promotion expenses 1 Home office expenses: Interest $ — 2 Insurance 2 Taxes 2 Heat, lights, water 1,800 1,800 X 15% 270 2 Basic telephone 1 Maintenance 120 1 Long distance 280 1 Alterations 3 Computer 3 Software 3 Meals — 50% X $140 70 4 2 Professional association dues 400 1 Chamber of Commerce 1 Golf club
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1 Convention 5 (3,940) NET EMPLOYMENT INCOME $48,040 16 1 These expenditures would not appear to be deductible. They are neither travel expenses, motor vehicle expenses, nor supplies. They cannot be deducted as sales expenses, as these expenses are limited to employees who earn commission income in the year. 2 These expenses cannot be deducted as home office expenses by a salaried employee. 3 Capital expenditures cannot be deducted by a salaried employee. 4 Deductible as travel expenses. 5 Not deductible as she is not required by her employer to attend the convention....
View Full Document

Ask a homework question - tutors are online