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Assignment Problem Two - 2 (Instalments, Interest, And Penalties For Corporations) Marcon Ltd. is Canadian company that is publicly traded on the Toronto Stock Exchange.
Assignment Problem Two - 2 (Instalments, Interest, And Penalties For Corporations) Marcon Ltd. is Canadian company that is publicly traded on the Toronto Stock Exchange. For both tax purposes and accounting purposes, the company uses a June 30 year end. This choice reflects the seasonal nature of their business. The company's Tax Payable for 2018 and 2019, and the estimated Tax Payable for 2020, are as follows: 2020 (Estimate) 2019 2018 $407,900 472,600 365,400 Required: A. Calculate the instalment payments that are required for the year ending June 30, 2020, under each of the alternative methods available. Indicate which of the alternatives would be preferable. B. On what specific dates are the instalment payments toward its 2020 taxes payable due? In addition, specify when the 2020 corporate tax return is due and the date on which the balance owing is due. C. If the company did not make any instalment payments toward its 2020 taxes payable, and did not file its corporate tax return or pay its taxes payable on time, indicate how the interest and penalty amounts assessed against it would be determined (a detailed calcula- tion is not required)
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