Assignment Problems

(The solutions for these problems are only available in the solutions manual that has been provided to your instructor.)

Assignment Problem Two - 1

(Individual Tax Instalments)

The following table contains information f or Gladys Nite f or the three years ending December 31, 2019. The Tax Payable column is her combined federal and provincial Tax Payable. T he amounts in the columns titled Case O ne, Two and Three are the amounts withheld by her employer in three independent cases.

Tax Payable Case One Case Two Case Three

2017 $18,880 $14,480 $19,280 $15,280

2018 20,320 19,720 14,880 16,160

2019(Estimated) 21,760 18,640 18,560 19,440

Required:

A.For each o f the three cases:

indicate whether instalments are required f or the 2019 taxation year. S how all of the calculations required to make this decision.

in those cases where instalments are required, indicate the amount o f the instalments that would b e required under the approach used in the C RA's instalment reminder; and

in those cases where you have calculated the instalments required under the CRA's instalment reminder approach, indicate whether there is a better approach and, if so, calculate the required instalments under that approach.

B.For those Cases where instalments are required, indicate the dates on which the payments will be due