Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Now Setting the course the Moon E62 Dodd online Answer SPACE FOR CALCULATIONS REQUIRED Question 3: Net Income for tax (26 marks) Required: Determine Trish's

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Now Setting the course the Moon E62 Dodd online Answer SPACE FOR CALCULATIONS REQUIRED Question 3: Net Income for tax (26 marks) Required: Determine Trish's net income for tax for 2021. 2 1 Trish has been employed for many years as a Pharmaceutical Technician in Calgary, Alberta. Her employer Pharma Corp. is a large Canadian Controlled Private Company. During 2021, her gross salary was $116,000. In addition, she was 2 awarded a $8.000 bonus to reflect her outstanding performance during the year. Half of this bonus was paid in December with the remaining being paid on January 10, 2022 5 2 Trish's employer withheld the following amounts from her income 5 Income Taxes 34,800 CPP 1166 890 10 Registered Pension Plan (RPP). Contributions 2.600 10 Professional membership dues 500 11 123 Trish's company contributed $3,000 on her behalf to the Company RP . Cover sheet.please read 01 02 03 04 05 Formula Sheet Calculation Mode: Automapic Workbook Static on the Pacy Settings. The cowboardowed so you were Services et E62 A 11 12 3 Trish's company contributed $3,000 on her behalf to the Company's RPP 13 4 Pharma Corp. provides life insurance coverage to all of its employees. The premiums paid by Pharma Corp. on Trish's 14 behalf cost $720 for the year. 15 5 Pharma Corp, provides group medical coverage to all of its employees. The private health plan premiums paid by Pharma 6 Corp. on Trish's behalf cost $1,800 for the year. 7 6 During the year, Trish receives a $400 camera as a Wedding gift. 7 Pharma Corp. provides Trish with a luxury vehicle that she uses to drive to client visits. The vehicle was used by Trish throughout 2021. Pharma Corp.pays all operating and maintenance costs, a total of $3,000 during the year. She reimbursed Pharma Corp. $1,100 for use of the car. Details of the vehicle and kilometers driven are below. Cover sheet - please read Q1 02 03 04 05 Formula Sheet + sulation Mode: Automatic Workbook Statistics Go to A han for us. We do the stage you to our go to the Office on the Settings. The concludere we provided to you on the Secret E62 D 25 Other please explain in column 27 28. 8 Trish borrowed $50,000 to invest in equities and a term deposit in 2021. The interest incurred was $875. 29 30 9 The equities paid $5,000 non-eligible dividends, 31 32 10 On May 1, 2021 she purchased a $10,000 term deposit at 4% with a term of 3 years. Interest will be paid at maturity 33 11 Trish has owned a residential rental property since 2014. The beginning UCC and revenue is shown below. 34 318.920 35 Beginning UCC 30,300 36 Rental revenue for the year Rental Revenue 37 Amount deducted: 19 Rental expenses are shown below IION a 01 02 03 04 05 Formula Sheet + Cover sheet - please read Mitmatir Workbook Statistics *** har forsing on Woodstone to your control tomon the weats. The co-action to you increment s 6 7 Beginning UCC Rental revenue for the year 318.920 30,300 Rental Revenue 1 Rental expenses are shown below Mortgage Payments (Note 1) Utilities Property tax Repairs and Maintenance Net rental income before CCA Maximum CCA (Calculated CCA from below) Capital Cost Allowance DEDUCTED (show as negative Amount deducted: $23.200 $6,000 $4,400 $9.500 1 05 Enter the amount of expense that can be deducted in the blue answer box Show this deduction negative number 0.5 Net rental income after CCA 5 5,000 Note 1: Interest included in mortgage payments + 01 02 Formula Sheet 03 04 05 Cover Sheet - please read culation Mode Automatic Workbook Statistics Now Setting the course the Moon E62 Dodd online Answer SPACE FOR CALCULATIONS REQUIRED Question 3: Net Income for tax (26 marks) Required: Determine Trish's net income for tax for 2021. 2 1 Trish has been employed for many years as a Pharmaceutical Technician in Calgary, Alberta. Her employer Pharma Corp. is a large Canadian Controlled Private Company. During 2021, her gross salary was $116,000. In addition, she was 2 awarded a $8.000 bonus to reflect her outstanding performance during the year. Half of this bonus was paid in December with the remaining being paid on January 10, 2022 5 2 Trish's employer withheld the following amounts from her income 5 Income Taxes 34,800 CPP 1166 890 10 Registered Pension Plan (RPP). Contributions 2.600 10 Professional membership dues 500 11 123 Trish's company contributed $3,000 on her behalf to the Company RP . Cover sheet.please read 01 02 03 04 05 Formula Sheet Calculation Mode: Automapic Workbook Static on the Pacy Settings. The cowboardowed so you were Services et E62 A 11 12 3 Trish's company contributed $3,000 on her behalf to the Company's RPP 13 4 Pharma Corp. provides life insurance coverage to all of its employees. The premiums paid by Pharma Corp. on Trish's 14 behalf cost $720 for the year. 15 5 Pharma Corp, provides group medical coverage to all of its employees. The private health plan premiums paid by Pharma 6 Corp. on Trish's behalf cost $1,800 for the year. 7 6 During the year, Trish receives a $400 camera as a Wedding gift. 7 Pharma Corp. provides Trish with a luxury vehicle that she uses to drive to client visits. The vehicle was used by Trish throughout 2021. Pharma Corp.pays all operating and maintenance costs, a total of $3,000 during the year. She reimbursed Pharma Corp. $1,100 for use of the car. Details of the vehicle and kilometers driven are below. Cover sheet - please read Q1 02 03 04 05 Formula Sheet + sulation Mode: Automatic Workbook Statistics Go to A han for us. We do the stage you to our go to the Office on the Settings. The concludere we provided to you on the Secret E62 D 25 Other please explain in column 27 28. 8 Trish borrowed $50,000 to invest in equities and a term deposit in 2021. The interest incurred was $875. 29 30 9 The equities paid $5,000 non-eligible dividends, 31 32 10 On May 1, 2021 she purchased a $10,000 term deposit at 4% with a term of 3 years. Interest will be paid at maturity 33 11 Trish has owned a residential rental property since 2014. The beginning UCC and revenue is shown below. 34 318.920 35 Beginning UCC 30,300 36 Rental revenue for the year Rental Revenue 37 Amount deducted: 19 Rental expenses are shown below IION a 01 02 03 04 05 Formula Sheet + Cover sheet - please read Mitmatir Workbook Statistics *** har forsing on Woodstone to your control tomon the weats. The co-action to you increment s 6 7 Beginning UCC Rental revenue for the year 318.920 30,300 Rental Revenue 1 Rental expenses are shown below Mortgage Payments (Note 1) Utilities Property tax Repairs and Maintenance Net rental income before CCA Maximum CCA (Calculated CCA from below) Capital Cost Allowance DEDUCTED (show as negative Amount deducted: $23.200 $6,000 $4,400 $9.500 1 05 Enter the amount of expense that can be deducted in the blue answer box Show this deduction negative number 0.5 Net rental income after CCA 5 5,000 Note 1: Interest included in mortgage payments + 01 02 Formula Sheet 03 04 05 Cover Sheet - please read culation Mode Automatic Workbook Statistics

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Intermediate Accounting principles and analysis

Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso

2nd Edition

978-0471737933

Students also viewed these Accounting questions