Izumi Tanaka Is Employed by TSK Inc $\bullet$ Izumi Earned $90,000 from TSK

question 10

Essay

Izumi Tanaka is employed by TSK Inc., a Canadian controlled private corporation.The following information pertains to the tax year in question:
$\bullet$ Izumi earned $90,000 from TSK.
$\bullet$ A cash bonus of $8,000 was announced on December 3^rd, to be paid to Izumi on January 10^th of the following year.
$\bullet$ Izumi was provided with a company car for the entire year.The cost of the car (including taxes) was $40,000.All operating costs were paid by TSK.Izumi drove the car 21,000 kilometers in 2020.10,000 kilometers were for personal use.
$\bullet$ Izumi and TSK each contributed $2,000 towards Izumi's registered pension plan.
$\bullet$ Izumi was presented with a watch from TSK, valued at $200, as a birthday gift.
$\bullet$ TSK provided Izumi with a $200 cell phone to be used for business purposes.
$\bullet$ In January, Izumi was granted a stock option to purchase 2000 shares in TSK at a cost of $8.00 per share.At that time, the fair market value per share was $9.00.Izumi exercised the option in February when the market value had risen to $9.50 per share.
$\bullet$ Izumi took a $15,000 low-interest loan from TSK on January 1^st, with a 1% interest rate.The CRA's prescribed rate during the year was 3%.
$\bullet$ TSK provided Izumi with a $25 meal allowance every week due to the two hours of overtime that was required to work each Wednesday immediately following eight hours of regular work.
$\bullet$ An annual union due of $850 was deducted from Izumi's pay in 2020.
Required:
A) Calculate Izumi's minimum employment income for tax purposes in accordance with Section 3 of the Income Tax Act.
B) Identify any items that have been omitted in your calculations, and briefly explain why.

• A) Calculate Izumi's minimum employment income for tax purposes in accordance with Section 3 of the Income Tax Act.
• B) Identify any items that have been omitted in your calculations, and briefly explain why.

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Definitions:

Tars

Complex chemical substances resulting from the burning or combustion of organic material, often associated with smoking.

Stimulant

Substances that increase physiological or nervous activity in the body, often enhancing alertness, attention, and energy.

Tranquilizer

A drug used to reduce anxiety or distress, often by inducing a mild sedation.

Excess Deaths

The number of deaths during a given time period that exceeds the number expected based on historical data, often indicating the impact of environmental, health, or social crises.