View the step-by-step solution to:

Question

Compute Susanna's net income from employment for the current year.Screen</h1><p class='abPRemoveTitle'> Shot 2019-10-14 at 1.07.54 AM.pngScreen Shot 2019-10-14 at 1.06.42 AM.png

Screen Shot 2019-10-14 at 1.06.42 AM.png

Deductions from gross pay
Employment Insurance contributions . . . . .
(891)
Canadian Pension Plan contributions
(2,356)
Union dues
(280)
Income tax paid . .
(19,800)
Net pay . . . . ..
$33,373
Expenses to earn commission income
Meals and entertainment . .
2,300
Hotel and travel incidentals
1,780
Airfare . . .
1,800
Total . . .
$ 5,880
MBI also granted Susanna a stock option, which she exercised in April of the current year. The
following information relates to the stock option:
Number of shares for options exercised .
1,000
Fair market value - grant date . .
$1.50
Option price . . . .
$1.80
Fair market value - exercise date . .
$2.50
Susanna's employer did not reimburse her, or provide her with an allowance for the expenses
incurred to earn commission income. However, MBI did expect her to take clients out for lunch and
travel when necessary.
- REQUIRED
Compute Susanna's net income from employment for the current year.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes