. ACC400 Assignment - Personal Tax (Cantax) Summer 2020 50 Marks MARKS: 10% OF FINAL GRADE DATE DUE: (August 14, 2020) QUESTION 1 (25 marks) Manuel Liriano is 40 years old, married and has 2 children aged 2 and 8 years old. He is employed at MOT Consulting and has an annual salary of $157,000. He has asked you whether he will have a tax payable or tax refund for 2019 (ignore provincial taxes). Other information he shared with you is as follows: His employer paid for the $300/month underground parking spot at the company's head office His employer gave him a $3,000 flat-screen tv as an award for his 10-year work anniversary. His employer gave him a $25 t-shirt for him to wear on the annual Terry Fox Run His employer paid $2,200 in premiums for him towards his membership in the company sponsored group disability plan He earned $6,500 in interest on his investments Manuel made an RRSP contribution of $12,000 and paid professional dues of $1,800. Manuel and his spouse did not incur any childcare expenses during the year. He is required by his employer to use his own automobile in the course of his employment. His total automobile costs for the year, including lease costs, gas, repairs and maintenance, are $14,000. He drove his car 24,000 kilometres during the year. 10,000 kilometres of this amount was for employment purposes. His spouse was infirm and had employment income in 2019 of $4,000 from her part-time job. His employer made the required CPP and El withholdings from his semi-monthly pay cheques throughout the year. Manuel was enrolled as a part-time student at Seneca College and took two courses during the year at a cost of $3,600. Manuel made charitable donations of $6,000 in 2019. Manuel incurred medical expenses of $5,600 for his family for the 12 month period ending on September 30, 2019. This was the 12 month-period ending in 2019 for which he incurred the highest amount of medical expenses. For the 2019 calendar year his medical expenses for his family totaled ($5,200). His employer deducted federal income tax of $25,750 . . . REQUIRED: Complete the relevant lines of the following tax forms to determine Manuel's: a. Employment Income (8 marks) b. Total Income (2 mark) c. Net Income (8 marks) d. Taxable income (2 mark) e. Non-refundable tax credits (20 marks) 1. Federal tax liability (6 marks) 8. Federal tax payable or refund (4 marks) 00 Heading 1 Heading 2 Headings Heading 4 Ignore provincial Income tax and show all of your work ACC400 - SUMMER 2020 TAX Assignment Step 2 - Total income As a resident of Canada. you have to report your income from all sources both inside and outside Canada The Income Tax and Benef Guide may have addional Information for certaines Employment income to 14 of all T4 sis) 10130 Tarrem income for emergency services voters Beeline 10100 in the guide 10105 Commission included on line 10100 42 cl T4 ) 10120 Wage-os replacement combine line 10100 in the guide 10130 Other employment income 10400 Our pension box 10 of the TAAOAS s TO CFP W OPP beneste 20 of the TAAP 11450 Diably benefits included on in 11400 ben 16 of the TAPP 11410 Other pensions and aration feeline 11500 in the guide and complete in 31400 e Wheet for the return TISO- Elected to ension amount (et and complete Form T1032. Universal career Cene R62 UCCB my designed to a dependent 11701 Emance and other benbox 14 fete 11930- Eminence matemy and parental benefits and provide parentinence plan benis T1905 Tament of dividends and other than fremtable Contactos Complete the worst for the reun) Tament of dividende other than stie duidende, uten tre 12000 hombre con corporis 12010 Interest and the investment income Complete the worst for them 1210 Nepth commerce patres only Registered in an income box 131 of the TGAN 12510 Resome Gr 1 Taste capital and Compete chede Total 117 Ta 1200. RASPnet TREP 12000 DOBRO Taste choish bandar program 2010 Sell employment income Bunu nome . Gr Gross 1990 Parang income 14530 De 10 1330 Women besek 10 h 30 se 1400 Neement of T DAS s 10100 10400 101 100 100 110 12000 12100 12500, 12000 2700 2800.00 1130101500157 1000 4100 4700 The total income 1000 2 Focus 8 ngs Review View KN AaBbcode AaBbcense AaBbCcD AaBbCcDdl A: Heading 1 Heading 2 Heading 3 Heading 4 ACC400 - SUMMER 2020 TAX Assignment Prodhen con Step 3 - Net Income Enter your income from line 15000 from the previous page. Pensionen dhe 82 of T4 wlis and be 054 al TA 20600 Registered pension plan deduction box 20 of all and box 032 TA 20700 RASP deduction See Sched and stache 2000 Pooled registered person plan (RPP) employer continue tom your con recep Deduction for elected pension amount it and comlete Form T103271000 Am o professional or the descripts and box Tess 100 Unand care bene repayment for 12 of a RC2 11300 Childcare expenses and compete Form 1778) 21400 - Batay sports deduction et and complete Fam T9201 21500 Business investment Gross den 1700 Moving expenses et and complete Form TIE) 1900- Support payments made Carrying that and intereses Comprehe the sun Ducion for CFP or OPP Gorions on employment and aming Comore See get and completom ROSEL 22200 - Deduction to CPP TOPP enhanced cons on employment Complete the gel and complete Form RCS whichever ass Export and elements et and complete Farm T12291 100- 22800 Derne deduction et and complete Form 1223 1100 Ordeductions 2100 A 2000 2000 21000 2100 21700 2100 22000 and 27900 Une 15000 21300 galvencer This is you net income before adjusts 2400 11100 and the amountain 2400 rechar your TBM you do on thes11300 amountain 23400gr than 7.500 20300 23560 Step 4 - Taxable income Canadian Forces persone con Seryoso ons 2400 *4100 25000 feterans 1200 and for Adres 24400 100 U 15000 1500 HD 2030 Focus 8 Tore Answers Anonymous answered this 1,461 answers Was this answer helpful? B1 a. Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs. Quantity Schedule Beginning WIP 100,000 Units Started 500.000 Units into production 600,000 Equivalent units Total Materials Conversion Units Completed 450,000 450,000 450,000 Ending WIP 150,000 150,000 75,000 Total Units 600,000 600,000 525,000 . w MacBook Air AOC100 Po 4 ACC400 - SUMMER 2020 TAX Assignment Line is more than $210.371 Part - Federal tax on taxable income Enter you wable income from line 20000 Complete the appropriate com Line 36 more Line 35 is more he is more depending one Une 35.is tan HT 630 but than $95.250 but than $147.47 but amount on line 36 17.0 ore no more than of more than No more than Enter the amount 395.250 3147.567 $210.371 tromine un minus line 7 0,00 1000 0525000 16786700 cannot enega Muhone 154 28% an 0.00 BALKO 1600 Addines 40 and 41. 210-700 RRRR 33N 12.00 Part C-Net federal tax Enter the amount om in 42 Federation split income and complete omT1206 Addnes 444 Enter your local federation undable tax credits from one on the propert Tridend tax credetine 46425 in the gue) Mam tax camouere and complete Form TO Attes 60 and 48. Me 00400 15 15000 1007 Basiefoder 40806 Federata 53 Ferrontaxed Get and come on T22001 Line 5 minus in the entert To federal contro 0400 Federal portical controlax credit Complete Worsheet for them Investment tax creditel and come form TCND)) sponsored funds are enes 4100 and 41400 in the guide 160 41000 412000 4140 41700 Rotines 54 and 56 in ne 57 nego Cand were benetan parte box RC210 Specane 1500 54.99 Burton 43000 48 1800 88 Nettede o FC ACC400 Pg, ACC400 - SUMMER 2020 TAX Assignment Step 7 - Refund or balance owing Protected when comed CPP con pomp ange Complete Schedule and compete Form ROS . El repere pon and other mange Complete Schew 133 Bolement from Ina 21500 Provincial or territorial 20. Add 42000, 0042120-42200, 42800 This is your total Nayable 1 To dedama Canan Refund Quebe meine 44000 the gate 1800- CPP paymentsetine in the guide Cimation incante Come Schedule 14 Complement for the dae Canal workers Comines 300 Retnine + Patreon 2003 Eye and parver STMSteel and complete Form OSTATO 70 teatro polar Bersepam 11.00 Tapadby times 400 170 A700 4700, and 8.00 L200 the tour Entre General Chord Refund Benewing I Focus .. MacBook Ain . ACC400 Assignment - Personal Tax (Cantax) Summer 2020 50 Marks MARKS: 10% OF FINAL GRADE DATE DUE: (August 14, 2020) QUESTION 1 (25 marks) Manuel Liriano is 40 years old, married and has 2 children aged 2 and 8 years old. He is employed at MOT Consulting and has an annual salary of $157,000. He has asked you whether he will have a tax payable or tax refund for 2019 (ignore provincial taxes). Other information he shared with you is as follows: His employer paid for the $300/month underground parking spot at the company's head office His employer gave him a $3,000 flat-screen tv as an award for his 10-year work anniversary. His employer gave him a $25 t-shirt for him to wear on the annual Terry Fox Run His employer paid $2,200 in premiums for him towards his membership in the company sponsored group disability plan He earned $6,500 in interest on his investments Manuel made an RRSP contribution of $12,000 and paid professional dues of $1,800. Manuel and his spouse did not incur any childcare expenses during the year. He is required by his employer to use his own automobile in the course of his employment. His total automobile costs for the year, including lease costs, gas, repairs and maintenance, are $14,000. He drove his car 24,000 kilometres during the year. 10,000 kilometres of this amount was for employment purposes. His spouse was infirm and had employment income in 2019 of $4,000 from her part-time job. His employer made the required CPP and El withholdings from his semi-monthly pay cheques throughout the year. Manuel was enrolled as a part-time student at Seneca College and took two courses during the year at a cost of $3,600. Manuel made charitable donations of $6,000 in 2019. Manuel incurred medical expenses of $5,600 for his family for the 12 month period ending on September 30, 2019. This was the 12 month-period ending in 2019 for which he incurred the highest amount of medical expenses. For the 2019 calendar year his medical expenses for his family totaled ($5,200). His employer deducted federal income tax of $25,750 . . . REQUIRED: Complete the relevant lines of the following tax forms to determine Manuel's: a. Employment Income (8 marks) b. Total Income (2 mark) c. Net Income (8 marks) d. Taxable income (2 mark) e. Non-refundable tax credits (20 marks) 1. Federal tax liability (6 marks) 8. Federal tax payable or refund (4 marks) 00 Heading 1 Heading 2 Headings Heading 4 Ignore provincial Income tax and show all of your work ACC400 - SUMMER 2020 TAX Assignment Step 2 - Total income As a resident of Canada. you have to report your income from all sources both inside and outside Canada The Income Tax and Benef Guide may have addional Information for certaines Employment income to 14 of all T4 sis) 10130 Tarrem income for emergency services voters Beeline 10100 in the guide 10105 Commission included on line 10100 42 cl T4 ) 10120 Wage-os replacement combine line 10100 in the guide 10130 Other employment income 10400 Our pension box 10 of the TAAOAS s TO CFP W OPP beneste 20 of the TAAP 11450 Diably benefits included on in 11400 ben 16 of the TAPP 11410 Other pensions and aration feeline 11500 in the guide and complete in 31400 e Wheet for the return TISO- Elected to ension amount (et and complete Form T1032. Universal career Cene R62 UCCB my designed to a dependent 11701 Emance and other benbox 14 fete 11930- Eminence matemy and parental benefits and provide parentinence plan benis T1905 Tament of dividends and other than fremtable Contactos Complete the worst for the reun) Tament of dividende other than stie duidende, uten tre 12000 hombre con corporis 12010 Interest and the investment income Complete the worst for them 1210 Nepth commerce patres only Registered in an income box 131 of the TGAN 12510 Resome Gr 1 Taste capital and Compete chede Total 117 Ta 1200. RASPnet TREP 12000 DOBRO Taste choish bandar program 2010 Sell employment income Bunu nome . Gr Gross 1990 Parang income 14530 De 10 1330 Women besek 10 h 30 se 1400 Neement of T DAS s 10100 10400 101 100 100 110 12000 12100 12500, 12000 2700 2800.00 1130101500157 1000 4100 4700 The total income 1000 2 Focus 8 ngs Review View KN AaBbcode AaBbcense AaBbCcD AaBbCcDdl A: Heading 1 Heading 2 Heading 3 Heading 4 ACC400 - SUMMER 2020 TAX Assignment Prodhen con Step 3 - Net Income Enter your income from line 15000 from the previous page. Pensionen dhe 82 of T4 wlis and be 054 al TA 20600 Registered pension plan deduction box 20 of all and box 032 TA 20700 RASP deduction See Sched and stache 2000 Pooled registered person plan (RPP) employer continue tom your con recep Deduction for elected pension amount it and comlete Form T103271000 Am o professional or the descripts and box Tess 100 Unand care bene repayment for 12 of a RC2 11300 Childcare expenses and compete Form 1778) 21400 - Batay sports deduction et and complete Fam T9201 21500 Business investment Gross den 1700 Moving expenses et and complete Form TIE) 1900- Support payments made Carrying that and intereses Comprehe the sun Ducion for CFP or OPP Gorions on employment and aming Comore See get and completom ROSEL 22200 - Deduction to CPP TOPP enhanced cons on employment Complete the gel and complete Form RCS whichever ass Export and elements et and complete Farm T12291 100- 22800 Derne deduction et and complete Form 1223 1100 Ordeductions 2100 A 2000 2000 21000 2100 21700 2100 22000 and 27900 Une 15000 21300 galvencer This is you net income before adjusts 2400 11100 and the amountain 2400 rechar your TBM you do on thes11300 amountain 23400gr than 7.500 20300 23560 Step 4 - Taxable income Canadian Forces persone con Seryoso ons 2400 *4100 25000 feterans 1200 and for Adres 24400 100 U 15000 1500 HD 2030 Focus 8 Tore Answers Anonymous answered this 1,461 answers Was this answer helpful? B1 a. Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs. Quantity Schedule Beginning WIP 100,000 Units Started 500.000 Units into production 600,000 Equivalent units Total Materials Conversion Units Completed 450,000 450,000 450,000 Ending WIP 150,000 150,000 75,000 Total Units 600,000 600,000 525,000 . w MacBook Air AOC100 Po 4 ACC400 - SUMMER 2020 TAX Assignment Line is more than $210.371 Part - Federal tax on taxable income Enter you wable income from line 20000 Complete the appropriate com Line 36 more Line 35 is more he is more depending one Une 35.is tan HT 630 but than $95.250 but than $147.47 but amount on line 36 17.0 ore no more than of more than No more than Enter the amount 395.250 3147.567 $210.371 tromine un minus line 7 0,00 1000 0525000 16786700 cannot enega Muhone 154 28% an 0.00 BALKO 1600 Addines 40 and 41. 210-700 RRRR 33N 12.00 Part C-Net federal tax Enter the amount om in 42 Federation split income and complete omT1206 Addnes 444 Enter your local federation undable tax credits from one on the propert Tridend tax credetine 46425 in the gue) Mam tax camouere and complete Form TO Attes 60 and 48. Me 00400 15 15000 1007 Basiefoder 40806 Federata 53 Ferrontaxed Get and come on T22001 Line 5 minus in the entert To federal contro 0400 Federal portical controlax credit Complete Worsheet for them Investment tax creditel and come form TCND)) sponsored funds are enes 4100 and 41400 in the guide 160 41000 412000 4140 41700 Rotines 54 and 56 in ne 57 nego Cand were benetan parte box RC210 Specane 1500 54.99 Burton 43000 48 1800 88 Nettede o FC ACC400 Pg, ACC400 - SUMMER 2020 TAX Assignment Step 7 - Refund or balance owing Protected when comed CPP con pomp ange Complete Schedule and compete Form ROS . El repere pon and other mange Complete Schew 133 Bolement from Ina 21500 Provincial or territorial 20. Add 42000, 0042120-42200, 42800 This is your total Nayable 1 To dedama Canan Refund Quebe meine 44000 the gate 1800- CPP paymentsetine in the guide Cimation incante Come Schedule 14 Complement for the dae Canal workers Comines 300 Retnine + Patreon 2003 Eye and parver STMSteel and complete Form OSTATO 70 teatro polar Bersepam 11.00 Tapadby times 400 170 A700 4700, and 8.00 L200 the tour Entre General Chord Refund Benewing I Focus .. MacBook Ain