Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

On January 2, 2013, Mr. Sam Hill moves from Thunder Bay, Ontario to London Ontario, in order to begin employment with Northern Pike Ltd. (NPL). His salary for the year was $124,000. NPL withheld the following amount from his earnings:

Federal and Provincial Income Tax $ 28,500
Registered Pension Plan Contributions
(NPL Makes A Matching Contribution 3,200
EI Premiums 891
CPP Contributions 2,356
United Way Donations 450
Professional Association Dues 1,250

Other Information:
1. Sam's moving expenses totaled $5,500. NPL reimbursed Sam for 100 percent of these costs.

2. For the year ended December 31, 2013, Sam was awarded a bonus of $33,000. Of this total $24,000 was paid during 2013, with the remainder payable in January 2014.

3. NPL provided Sam with a car to be used in his employment activities and paid the operating costs for the year that totaled $8,100. The cost of the car was $39,550 including HST of $4,550. The car was available to Sam throughout 2013. He drove a total of 64,000 kilometers. This included 8,000 kilometers for personal use.

4. In negotiating his new position with NPL, Sam had asked for a $50,000 interest free loan as one of his benefits. NPL's human recourses department indicated that the CEO would not approve any employee loans. However, they agreed to advance $50,000 of his 2014 salary as of November 1, 2013.

5. NPL provided Sam with the following additional benefits:
a. Allowance for acquiring business clothing $ 4,800
b. Squash Club Membership (no employment related usage) 2,900
c. Financial Advisor Fees 1,200.

6. Sam's previous employer was a Canadian controlled private corporation. In 2012, he was granted options to buy 500 of the company's shares at $20 per share. This option price was higher than the estimated fair market value of the company's shares at the time the option was granted. On January 2, 2013, Sam exercised these options. At this time the fair market value of the shares was $28 per share. Sam decides he wants to sell these shares for $28 per share.

7. Sam was required by his employer to acquire a laptop computer to be used in his employment duties. At the beginning of 2013, he purchased a computer at a cost of $1,356, including HST of $256. During 2013, his expenditures for computer related supplies was $150

Required: Determine Sam's net employment income for the year ending December 31, 2013.

 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M941310

Have any Question? 


Related Questions in Accounting Basics

Problem 1a two four-year-old companies are identical in all

Problem 1: a. Two four-year-old companies are identical in all respects except that Company A has used straight-line depreciation exclusively since inception while Company B has used double-declining balance depreciation ...

A are the amounts at which fixed assets are reported in the

A. Are the amounts at which fixed assets are reported in the balance sheet their approximate market values as of the balance sheet date? Discuss. B. (a) Under what conditions is the use of an accelerated depreciation met ...

Practice questionsa large company has a distribution

Practice questions: A large company has a distribution department with its own garages and vehicles. Suggest six headings under which the costs of the department might be collected.

Accounting questionsinternational accounting focuses on

Accounting Questions: International Accounting focuses on foreign currency and hedging. Why might a company prefer a foreign currency option rather than a forward contract in hedging a foreign currency firm commitment? W ...

Bull what does it mean to create a culture of honesty

• What does it mean to create a "Culture of Honesty, Openness, and Assistance?" Give an example from an organization with which you have been affiliated. • Codes of Conduct and Conflict of Interest Forms are often called ...

According to the assignment requirement and the lecture

According to the assignment requirement and the lecture slides and tutorial questions, design a multiple choice question on ordinary income and statutory income from the individual point. 400 words. The QCQ must have a c ...

Question - present arguments in support of a mnc favoring a

Question - Present arguments in support of a MNC favoring a debt-intensive capital structure. Present arguments in support of a MNC favoring an equity-intensive capital structure.

Excel formulas functions assignment depreciation

EXCEL FORMULAS / FUNCTIONS Assignment Depreciation Schedule Learning Objectives: 1. Creating Range Names 2. Creating variable Comments 3. Using Absolute and Relative References 4. Creating Formulas using following functi ...

A stock pays an annual dividend of 2 the dividend is

A stock pays an annual dividend of $2. The dividend is expected to increase by 2% per year (roughly the inflation rate) forever. The price of the stock is $40 per share. At what cost of capital is this stock priced?

Assume dubello company uses the cost method for any

Assume Dubello Company uses the cost method for any treasury stock transactions. Dubello Company has the following information about it's common stock on January 1 of the current year: Common Stock, $4 par; 200,000 share ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate