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grinch incomeChapter $3$ ASSIGNMENT $-1$

Grinch's income for the year is as follows:

Salary gross

Less: CPP and El contributions $($CPP enhanced portion is $$631)$

Add: bonus based on his sales volume

The costs of travel, wholly related to work, are as follows $($he now has a $44)$:

Gas, oil, and maintenance

License and insurance

$[$$$6,000],[2,000],[$$$8,000]$

He has discovered that he drives mostly for work. During this year, he has driven $34,000km$ for work and only $6,000km$

for personal use. The company leased his $44$ from the Whos on January $1,2023,$ for $$900$ per month, plus GST for a total

of $$945($there is no HST where he lives in Nunavut$)$; annual total of $$11,340$ which excludes insurance of $$1,200.$ The

manufacturer's suggested list price for the vehicle was $$33,000.$ The operating cost for the year paid directly by the employer

was $$4,000$ including GST but excluding parking. Grinch reimbursed the employer $5$ cents for every kilometre of personal

use. Additional costs of travel while away from the area of Who$-$ville are train fare $($$$2,500),$ accommodation $($$$2,000),$ and

meals $($$$3,000).$

bo$).$ of Mal.

The company does not give him an office, as he is out selling every day. He has partitioned a work space in his cave atop

the mountain overlooking Who$-$ville, which he uses for his office. The office space takes up about $20\%$ of the cave and is

used for no other purpose, except when his dog Max gets into it and makes a mess.

The costs associated with his cave are as follows:

Wood fuel for the stove

Satellite phone service$-$monthly "link$-$up$"$ charge $($too remote for wires$)$

Mortgage interest

Long distance calls for work

Property taxes $($to the Whos of course$)$

Computer equipment needed for work

General upkeep and maintenance

Contents and property insurance $($mostly garbage$)$

Supplies for the office

Under the Grinch's contract of employment he is required to pay all of his own employment$-$related expenses, as well as

the costs to maintain his own office. He regularly travels out of the Who$-$ville municipality on employment$-$related matters.

Required:

Compute the Grinch's income from employment. Show$/$support any computations whether or not relevant to your final

answer. For items excluded from your calculation, describe why you excluded them.

leased $11340\frac{2}{3}$

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