CPU Assignment 2:

The CPU assignment 2 is worth 15% of your overall grade in this course. This assignment is due by the end of this module.

Tim Jones is an independent I.T. Consultant who services businesses and residential clients on their I.T. needs. The business is a sole proprietorship. He rents an office space to store equipment and supplies and to show clients that the business has a permanent establishment. To provide an upscale service, Tim drives out to clients sites whenever he cannot provide I.T. support remotely or by phone. Tims birthday is March 16, 1980 and his SIN number is 423 456 789. Address at 941 Progress Avenue, Toronto, Ontario, M1G 3T8, with a home phone number of 416-289-5000.

Dana Jones, Tims wife, works as an employee at Staples. Her salary is $40,000 with payroll deductions of $1,861.50 for CPP, $648 for EI and Income Tax Deductions of $6,000. Danas birthday is September 9, 1982 and her SIN is 444 444 442. Same address and contact information as Tim.

Tim organized his own business records which shows the following:

Sales = $100,000	Advertising = $7,000
Meals with Clients = $4,800	Office expense = $8,850
Rent for office space = $13,700	Golf club membership = $800

Tim uses the den of his house as an office where he works on and keeps the financial records of the business, as well as to contact clients. The den is 350 square feet, while the total square footage of his house is 3,500. Expenses related to the house is as follows for 2020: Heating is $2,000; electricity is $2,000; Mortgage payments of $18,000 of which the interest component is $5,200; Property taxes totaled $5,500; Home insurance is $150 per month; and repairs for a leaking roof totaled $2,200.

The vehicle used for the business to go to client sites is a Subaru Forester that Tim bought in July 1, 2019 for $28,000. In 2020, the beginning UCC of the vehicle is $23,800. Total kilometers was 20,000km of which 15,000km was for business purposes. Vehicle expenses for the year are as follows:

Fuel = $3,175

Repairs = $550

Insurance = $2,200

License = $130

Tim provides a specialized I.T. service with the help of a unique physical tool. This tool was bought in May 15, 2019 and costed $2,000. He no longer wished to provide this service and had sold the tool for $3,000. The UCC at the start of 2020 was $1,600.

In order to meet business demand, Tim had purchased a new computer on September 5, 2020 for $5,000.

Other personal information includes:

2020 Donation to Doctors without Borders by Tim - $1,000

2020 Donation to Red Cross by Dana - $1,000

2020-12-31 Eligible medical receipts for Tim - $1,500

2020-12-31 Eligible medical receipts for Dana - $200

Prepare Tim and Danas 2020 T1 personal tax returns with minimum taxes payable. Ignore any GST/HST implications.

1. The entire ProFile computer file (the file extension that ends .20T), and
2. A PDF printout of the Summary page.

Due Date

Mar 21, 2021 11:59 PM