Exercise Two - 4

Subject: Individual Instalments

John Lee, a resident of Newfoundland, had net tax owing for 2018 of $3,500, net tax owing for 2019 of $1,500, and expects to have net tax owing for 2020 of $4,500. Is he required to make instalment payments for 2020? If so, what would be the minimum quarterly payment and when would each instalment be due?

Exercise Two - 5

Subject: Individual Instalments

At the beginning of 2020, the following information relates to Jesse Forbes:

Year	Tax Payable	Amounts Withheld
2018	$53,000	$52,000
2019	59,000	52,000
2020 (Estimated)	64,000	60,000

Is Jesse required to make instalment payments during 2020? If he is required to make instalment payments, indicate the amounts that would be required under each of the three alternative methods of calculating instalments. Indicate which alternative would be preferable.