Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Harry Daffodil is a 3 year accounting student at Kwantlen and also works part-time as a bookkeeper for a plant store in Surrey. He would

image text in transcribed

image text in transcribed
Harry Daffodil is a 3" year accounting student at Kwantlen and also works part-time as a bookkeeper for a plant store in Surrey. He would like you to prepare his 2019 tax return and has provided you with the following information: (a) The following amounts relate to Harry's employment in the year: a. $25,000 gross salary b. $600 employer contribution to RPP c. Harry used his 30% staff discount to purchase plants and horticultural equipment during the year. The retail price was $1,000 but, with his 30%% staff discount, Harry only had to pay $700. The original cost to the company was $550. d. $350 employer contribution to employee private medical plan e. In Dec 2019, the Company declared a $1,000 Christmas bonus to all employess which it paid in January 2020. The previous year's bonus (for 2018) of $600 was paid in January 2019. f. $50 Cinemax Odeon gift card for meeting the Fall season sales targets. g. $450 automobile allowance for delivering plants at work. The allowance was based on the 1,000 kilometres driven for work multiplied by the Company's $0.45/km rate. h. The company withheld (and submitted to the government) $2,500 in federal taxes. (b) Harry is a full-time student. During 2019 he paid $4,400 for tuition to KPU, purchased $700 in textbooks and paid $500 for the KPU transit pass. (c) He also had the following tax credits: Personal ($1,810); Canada Employment ($183), CPP ($164), EI ($61). (d) Harry travelled to Puerto Vallarta, Mexico in August 2019 and earned $800 in cash working at a bar for a few weeks. (e) In May 2019 He received a cheque for $5,000 from his RESP of which $3,500 represented RESP plan growth and grants and $1,500 represented a portion of the original contribution. He still has $20,000 remaining in the RESP of which $12,000 represents growth/grants and $8,000 represents the original contribution. (f) For his outstanding academic performance his old high school provides him with a 51,000 scholarship each year. The $1,000 for this year was paid in September 2019. (g) Harry purchased $500 worth of shares (listed on the TSE) in a marijuana company on Feb 8, 2019. He subsequently sold the shares on November 8", 2019 for $900. He has a net capital loss of $1,200 available from a failed investment in a blockchain company in 2017. (h) He contributed $1,000 to his RRSP in May 2019, all of this amount is deductible

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Financial Accounting

Authors: Fred Phillips, Robert Libby, Patricia Libby

6th edition

1259864235, 1259864230, 1260159547, 126015954X, 978-1259864230

More Books

Students also viewed these Accounting questions

Question

1. Maintain my own perspective and my opinions

Answered: 1 week ago