in 20×3 carol fortier was transferred by her employer to va
Fortier uses her car for business activities. At the end of 20X2, the car had an unamortized capital cost of $20,000 (original cost in 20X2, $22,000). In 20X3, she drove the car 30,000 kilometres, of which approximately 12,000 was for personal use. In 20X3, she acquired a computer (see table), which she uses at home to maintain customer files and industry information. She estimates that 90% of her 20X3 computer time was employment related.
4. On January 15, 20X4, Fortier contributed $7,000 to an RRSP. On the same date she contributed $4,000 to a TFSA. For the 20X2 taxation year, her earned income was $63,889. In 20X2, the combined (employer and employee) contribution to her employer RPP was $6,400.
5. Fortier drove herself and her two children from Toronto to Vancouver. The 4,400 km trip took five days. She paid $400 for gasoline, $480 for accommodation for four nights, and $500 for meals for five days. As well, she incurred the following relocation costs:
Real estate commission on sale of former home $19,000
Moving furniture 14,000
Legal fees to purchase new home 2,000
Legal fees on sale of former home 2,500
Temporary lodging and meals, in Toronto after the sale
of the former home and in Vancouver before taking
possession of the new home (30 days) 6,000
$43,500
Her employer, in accordance with company policy, paid her the maximum $10,000 as a partial reimbursement for transporting furniture to Vancouver.
6. Fortier wrote an article on selling strategies in the fashion industry. It was published in a national trade journal. The article received wide acclaim. In September 20X3, she was awarded a $2,000 prize for the best article of the year.
7. In January 20X3, Fortier sold her home in Toronto for $300,000. She had acquired the home in 20X0 for $180,000 and had occupied it until the move to Vancouver.
8. Five years ago, Fortier purchased 5% of the common shares of Prentice Ltd. for $20,000. Prentice is a Canadian-controlled private corporation manufacturing specialized furniture. In June 20X0, when the company had cash-flow problems, Fortier lent Prentice $10,000.The loan was unsecured and payable on demand. Although Fortier has received no interest to date, in 20X1 and 20X2, she included in her taxable income interest of $1,500 ($750 x 2 y = $1,500) based on the agreed 71â„2% interest rate on each anniversary date. In 20X3, she demanded payment of the loan and accrued interest, but the company was unable to pay. The company only assets, other than the leased manufacturing equipment, were inventory and receivables, which were pledged on a bank loan; these were insufficient to meet even that obligation. In March 20X4, Prentice closed operations and declared bankruptcy.
9. Fortier sold the following properties in 20X3:
