Ted Lasso works for Welton Inc., a CCPC startup. He does not earn a…

Question Answered step-by-step Ted Lasso works for Welton Inc., a CCPC startup. He does not earn a… Ted Lasso works for Welton Inc., a CCPC startup. He does not earn a salary or a wage, but rather is compensated with commissions based on sales. In 2021, he earned $45,000 of commissions. In addition, in March 2021, Welton granted him 500 stock options to purchase shares of the company for $5/share. At that time, the shares were valued at $4.50/share. In November 2021, the shares had increased in value to $6/share so Ted purchased exercised 100 options to purchase 100 shares. In order to earn commissions, Ted incurred a variety of expenses in 2021 personally:Automobile (15,000 personal km; 10,000 employment-related km)Lease costs $5,400Gas 4,800Repairs and maintenance 2,000Car insurance 1,800 Home office (100 sq ft of 2000 sq ft home)Mortgage payments (30% interest) $24,000Property tax 3,500Home insurance 900Utilities 3,200Duct cleaning 400Office furniture 1,500 OtherMeals with clients in town $1,600Monthly massages (his job is very stressful) 1,200Childcare 13,000Advertising signage 4,100 Welton provides Ted with a $250/month vehicle allowance and provided him with a $800 lump sum allowance for his advertising needs. Ted took a training course which originally cost him $675, but Welton reimbursed him for this expense. Required:a) Calculate Ted’s net employment income for 2021b) If you chose not to deduct an expense, briefly explain why.c) In 2022, Ted chooses to sell the shares of Welton he purchased in 2021. Assume an amount for the proceeds of disposition he experiences on this sale (i.e., you pick the amount) and calculate/explain the resulting tax consequences of this sale. Law Social Science Tax law ACCOUNTING TAX4001 Share QuestionEmailCopy link Comments (0)