Andy Worked for High Speed Bikes Inc

Andy worked for High Speed Bikes Inc.from March 1^st to December 31^st during 20x1.He earned a monthly base salary of $4,000,plus 1% commission on all of his sales.During 20x1,Andy's sales totaled $800,000.Andy was required by his employer to pay for his employment expenses.He traveled out of his city most days in order to sell to customers in surrounding towns.He received a monthly allowance of $500 to cover his traveling costs (which has been accurately recognized as 'unreasonable').Andy and his employer each contributed $2,000 to the company's registered pension plan in 20x1
Andy provided you with the following receipts for 20x1:
Andy purchased a new vehicle for work during the year,and drove it a total of 25,000 kms while employed at High Speed Bikes.12,000 of these kilometres were for business.The vehicle cost Andy $32,000 plus GST of 5% and PST of 5%.Work-related interest payments on the car loan totaled $200 per month.
Required:
Calculate Andy's employment income for 20x1 in accordance with Section 3 of the Income Tax Act

Correct Answer:

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