Question 4 (5 marks)
Richard Trent earns a salary of $70,000 in 2023 as an employee of Trent Ltd. He pays the
following expenses to earn his income:
Car expenses $3,000
Transportation (other than car) & accommodation $5,000
Client entertainment meals $600
Advertising and promotion $1,000
1) Determine the maximum deduction for employment expenses that Richard is entitled to
claim in computing his income for 2023.
2) How would your answer to (a) change, if at all, if Richard was a salesperson and received
commission income of $6,000 in addition to his salary, in 2023?
3) How would your answer to (b) change, if at all, if Richard's commission income were
$20,000?