p1 p2 p3 Jane Jackson resides in Vancouver, BC, and has been employed by ABC Ltd. for
Fantastic news! We've Found the answer you've been seeking!
Question:
p1
p2
p3
Transcribed Image Text:
Jane Jackson resides in Vancouver, BC, and has been employed by ABC Ltd. for a number of years as its accountant. i (Click on the icon to view more information Part 1.) 1 (Click on the icon to view more information Part 2.) 1 (Click on the icon to view more information Part 3.) Required Requirement 1. For each amount paid by ABC Ltd. that was not reported on Jane's T4 slip, determine if the amount is a taxable or non-taxable benefit. Items paid by ABC and not on T4 slip Classification Private health insurance plan premiums Public health insurance plan premiums Group term life insurance policy premiums Allowance for incidental expenses ($400 per month) Jane's T4 slip for the current year indicates the following amounts were deducted from her gross salary of $86,000. Deductions CPP (maximum for the year*) El (maximum for the year*) RPP Amounts $4,500.00 9,000.00 20,000.00 Pension adjustment Income Tax deducted Union Dues 300.00 Charitable donations 1,200.00 * See the current year's tax rate sheet to determine the CPP and El reported on the T4 slip. Private health insurance plan premiums Public health insurance plan premiums The following amounts are paid by ABC Ltd. and not included on Jane's current year T4 slip. Paid by ABC Ltd. Group term life insurance policy premiums Allowance for incidental expenses ($400 per month) Amounts $1,800.00 1,500.00 400.00 4,800.00 ABC Ltd. provided Jane with a motor vehicle for the entire year, and the company also paid for all operating costs for the vehicle, with $5,450 paid for operating costs in the current year. The vehicle was purchased by ABC Ltd. three years ago at a cost of $48,000 (incl. GST). In the current year, Jane drove 22,000 kilometres; 9,000 kilometres were personal, and 13,000 were for employment purposes. On October 1 of the current year, Jane purchased 1,200 shares of ABC Ltd. under a stock option plan. ABC Ltd. is a Canadian public corporation. The following information is provided. Stock Options Option granted on Jan. 1 of the prior year, FMV Option price = $12 per share = $12 per share Option exercised on July 1 of the current year, FMV = $18 per share * Note: On December 31, Jane continues to hold the 1,200 ABC Ltd. shares since she anticipates they will appreciate in value. In the current year, her mother travelled with her to Ottawa when Jane attended a five-day conference for accountants. ABC Ltd. reimbursed her for the full cost of $5,400, of which $3,000 (including GST) was for expenses she incurred for her mother. On July 1 of the prior year, ABC provided Jane with an employee loan in the amount of $12,000 at the annual interest rate of 1%. The loan requires annual principal repayments of $2,600 on June 30 of each year. Jane made the first annual repayment on June 30 of the current year. Canada Revenue Agency's interest rates for the calendar quarters in the current year are as follows. Quarter Quarter #1 (January 1 to March 31) Quarter #2 (April 1 to June 30) Quarter #3 (July 1 to Sept 30) Quarter #4 (Oct 1 to Dec 31) Rates 3% 2% 3% 3% In the current year, Jane paid the following amount personally: CPA professional dues (annual) in the amount of $1,200 (paid on June 30). Employment expenses: Jane paid for supplies (used for employment purposes) in the amount of $1,400 (expenses occurred throughout the year). ABC Ltd. has authorized these expenses and filed Form T2200 accordingly. Jane Jackson resides in Vancouver, BC, and has been employed by ABC Ltd. for a number of years as its accountant. i (Click on the icon to view more information Part 1.) 1 (Click on the icon to view more information Part 2.) 1 (Click on the icon to view more information Part 3.) Required Requirement 1. For each amount paid by ABC Ltd. that was not reported on Jane's T4 slip, determine if the amount is a taxable or non-taxable benefit. Items paid by ABC and not on T4 slip Classification Private health insurance plan premiums Public health insurance plan premiums Group term life insurance policy premiums Allowance for incidental expenses ($400 per month) Jane's T4 slip for the current year indicates the following amounts were deducted from her gross salary of $86,000. Deductions CPP (maximum for the year*) El (maximum for the year*) RPP Amounts $4,500.00 9,000.00 20,000.00 Pension adjustment Income Tax deducted Union Dues 300.00 Charitable donations 1,200.00 * See the current year's tax rate sheet to determine the CPP and El reported on the T4 slip. Private health insurance plan premiums Public health insurance plan premiums The following amounts are paid by ABC Ltd. and not included on Jane's current year T4 slip. Paid by ABC Ltd. Group term life insurance policy premiums Allowance for incidental expenses ($400 per month) Amounts $1,800.00 1,500.00 400.00 4,800.00 ABC Ltd. provided Jane with a motor vehicle for the entire year, and the company also paid for all operating costs for the vehicle, with $5,450 paid for operating costs in the current year. The vehicle was purchased by ABC Ltd. three years ago at a cost of $48,000 (incl. GST). In the current year, Jane drove 22,000 kilometres; 9,000 kilometres were personal, and 13,000 were for employment purposes. On October 1 of the current year, Jane purchased 1,200 shares of ABC Ltd. under a stock option plan. ABC Ltd. is a Canadian public corporation. The following information is provided. Stock Options Option granted on Jan. 1 of the prior year, FMV Option price = $12 per share = $12 per share Option exercised on July 1 of the current year, FMV = $18 per share * Note: On December 31, Jane continues to hold the 1,200 ABC Ltd. shares since she anticipates they will appreciate in value. In the current year, her mother travelled with her to Ottawa when Jane attended a five-day conference for accountants. ABC Ltd. reimbursed her for the full cost of $5,400, of which $3,000 (including GST) was for expenses she incurred for her mother. On July 1 of the prior year, ABC provided Jane with an employee loan in the amount of $12,000 at the annual interest rate of 1%. The loan requires annual principal repayments of $2,600 on June 30 of each year. Jane made the first annual repayment on June 30 of the current year. Canada Revenue Agency's interest rates for the calendar quarters in the current year are as follows. Quarter Quarter #1 (January 1 to March 31) Quarter #2 (April 1 to June 30) Quarter #3 (July 1 to Sept 30) Quarter #4 (Oct 1 to Dec 31) Rates 3% 2% 3% 3% In the current year, Jane paid the following amount personally: CPA professional dues (annual) in the amount of $1,200 (paid on June 30). Employment expenses: Jane paid for supplies (used for employment purposes) in the amount of $1,400 (expenses occurred throughout the year). ABC Ltd. has authorized these expenses and filed Form T2200 accordingly.
Expert Answer:
Answer rating: 100% (QA)
Let p 1 be the altitude of AD p 2 of BE and p 3 of F... View the full answer
Related Book For
Financial Management Principles and Applications
ISBN: 978-0134417219
13th edition
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
Posted Date:
Students also viewed these law questions
-
Scientists invent a new machine that can be used to harvest wheat. After its introduction, wages and the equilibrium quantity of labor rise. That means this new machine most likely represents a...
-
In Problems 1-3, prices p1 and p2 are in dollars and q1 and q2 are numbers of units. 1. The demand functions for two products are given by q1 = 300 - 8p1 - 4p2 q2 = 400 - 5p1 - 10p2 Find the demand...
-
Let T1: P2 P3 and T2: P3 P3 be the linear transformations given by the formulas T1(p(x)) = xp(x) and T2(p(x)) = p(x + 1) Find formulas for T1-l (p(x)), T2-1 (p(x)), and (T2 o T1)-1 (p(x))
-
In Problems 25 54, solve each system. Use any method you wish. 2xxy + y = 8 xy = 4
-
Use the Runge-Kutta-Fehlberg method with tolerance TOL = 104, hmax = 0.25, and hmin = 0.05 to approximate the solutions to the following initial-value problems. Compare the results to the actual...
-
Include a two-input AND gate with the register of Fig. 2-6 and connect the gate output to the clock inputs of all the flip-flops. One input of the AND gate receives the clock pulses from the clock...
-
On the Internet, find a recent annual report for the company Merck \& Co., Inc. Based on information in that report, determine the following: (a) The nature of the business of Merck. (b) The new...
-
On April 1, 2014, Joy Ltd. sold land for $600,000. The note will be collected as follows: $100,000 in 2014, $200,000 in 2015, and $300,000 in 2016. The property had cost Joy $122,000 when it was...
-
Alan Bowie is trying to determine the amount to set aside so that he will have enough money on hand in 5 years to overhaul the engine on his vintage used car. While there is some uncertainty about...
-
Client's Facts: The client found a check written out to cash in the amount of $750. The check was completely made out when he found it. He took it to the bank, signed it on the back as instructed by...
-
GCD circuit calculates the greatest common divisor (GCD) of two binary positive 4-bit numbers. The operand registers, p and q, are initialized with the activation of a start signal, which commences...
-
Explain what equity means as it relates to taxation. ( 2 ) Discuss the two general equity standards of benefits received and ability to pay. Explain what each of these terms mean and how each...
-
I would like to know how ChatGPT can be used in the marketing of South African businesses? How can it help increase brand power?
-
What sometimes causes workers to engage in risky or dishonest acts?
-
Air is free and is governed by the Clean Air Act to protect our rights to clean air. Local and community water supplies have increasing become more privatize and the cost has increase to the point in...
-
A company's taxes paid on its last dollar of earnings is its: Question 7 options: average tax rate marginal tax rate Question 8 (0.2 points) The financial statement that shows the assets and...
-
Material & Service Inputs Finance Acquires financial resources and capital for inputs Sales Revenue Support Functions Operations Accounting Information Systems Human Resources Engineering Marketing...
-
Bonus shares can be issued out of revenue reserves. True/False?
-
In 2016, RubKing Barbeque Sauce, Inc., purchased a new bottling machine at a cost of $1.5 million. The new machine is expected to last for 10 years, and the firm plans to depreciate it using...
-
Explain what a firm's dividend policy is as if you were talking to your grandmother, who has had no formal education in business.
-
Following is a scrambled list of accounts from the income statement and balance sheet of Belmond, Inc.: Inventory ...........................................$ 6,500 Common stock...
-
A Newtonian fluid with $\mathrm{SG}=0.8$ is forced through a capillary tube at a rate of $5 \mathrm{~cm}^{3} / \mathrm{min}$. The tube has a downward slope of $30^{\circ}$ to the horizontal, and the...
-
A liquid is draining from a cylindrical vessel through a tube in the bottom of the vessel, as illustrated in Figure P6.6 below. If the liquid has a specific gravity of 0.85 and drains out at a rate...
-
You must measure the viscosity of an oil that has an SG of 0.92 . To do this, you put the oil into a large container to the bottom of which a small vertical tube, $25 \mathrm{~cm}$ long, has been...
Study smarter with the SolutionInn App