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Case 4 - Allowances & Expenses (7 Marks) Dale & Donna Becker are both sales people working for a large pharmaceutical company with a branch office in North Bay. Due to their expertise, the company has asked them to relocate to Toronto as soon as possible. They have been given an allowance of $10,000 to compensate them for any inconvenience. The following items have been diarized to date by Dale & Donna as they relate to their move over the past two weeks, Travel expenses (mileage at prescribed rates) Temporary living expenses - 12 days Renovations to new residence Lease cancellation of old residence Legal/agent fees (for both old & current premises) Transportation & storage of household items Incidental costs (ie, disconnection of cable, etc.) $975 $2,500 $7,500 $4,000 $1,800 $2,900 $325 Based on the above information; Indicate which item(s) above are NOT eligible under the Income Tax Act. Further, what additional expenses could be considered as eligible? (Hint: reference a T1-M form to complete this question) What minimum condition(s) does CRA indicate must be met, when employers are compensating employees for moving expenses? Assuming that they retain receipts for all their eligible expenses, what would Dale & Donna have to evaluate with regard to any personal income tax consequences on the $10,000 advance? EXPLAIN your response and JUSTIFY it numerically

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