Part 1
part 2
part 3
required
Jenna Wilson resides in Ottawa, ON, and has been employed by A1A Ltd. for a number of years as its accountant. (Click on the icon to view more information Part 1.) (Click on the icon to view more information Part 2.) (Click on the icon to view more information Part 3.) Required Requirement 2. Calculate the total amount of taxable benefits for Jenna in the current year. Complete the table below. (Round your answers to the nearest cent, and provide appropriate references to the ITA.) Taxable Benefits Amount ITA Reference Life Insurance $ 400.00 Public health care 1,500.00 Auto - reduced standby charge 5,413.92 Auto - operating cost 2600.00 ITA S.6(4) ITA S.6(1)(a) ITA S.6(2) or 6(1)(e) ITA S.6(1)(k) ITA S.6(1)(0) ITA S.6(1)(b) ITA S.6(9) and 80.4 Reimbursement - for Jenna's mother's travel 3,000.00 Allowance - for incidental expenses 4,800.00 Loan interest 210.08 4800.00 Stock options ITA S.7(1) 22724.00 Total taxable benefits pursuant to ITA 6 and ITA 7 Choose from any list or enter any number in the input fields and then click Check Answer. 0 X More Info Jenna's T4 slip for the current year indicates the following amounts were deducted from her gross salary of $78,000. Deductions Amounts CPP (maximum for the year*) El (maximum for the year*) RPP $4,500.00 Pension adjustment 9,000.00 Income Tax deducted 20,000.00 Union Dues 300.00 Charitable donations 1,200.00 See the current year's tax rate sheet to determine the CPP and El reported on the T4 * slip. The following amounts are paid by A1A Ltd. and not included on Jenna's current year T4 slip. Paid by A1A Ltd. Amounts Private health insurance plan premiums $1,800.00 Public health insurance plan premiums 1,500.00 Group term life insurance policy premiums 400.00 Allowance for incidental expenses ($400 per month) 4,800.00 Print Done X i More Info A1A Ltd. provided Jenna with a motor vehicle for the entire year, and the company also paid for all operating costs for the vehicle, with $5,250 paid for operating costs in the current year. The vehicle was purchased by A1A Ltd. three years ago at a cost of $47,500 (incl. GST). In the current year, Jenna drove 22,000 kilometres; 9,500 kilometres were personal, and 12,500 were for employment purposes. On October 1 of the current year, Jenna purchased 1,600 shares of A1A Ltd. under a stock option plan. A1A Ltd. is a Canadian public corporation. The following information is provided. = Stock Options Option granted on Jan. 1 of the prior year, FMV $12 per share Option price $12 per share Option exercised on July 1 of the current year, FMV $18 per share * Note: On December 31, Jane continues to hold the 1,600 A1A Ltd. shares since she anticipates they will appreciate in value. In the current year, her mother travelled with her to Calgary when Jenna attended a five-day conference for accountants. A1A Ltd. reimbursed her for the full cost of $5,200, of which $3,000 (including GST) was for expenses she incurred for her mother. Print Done X More Info On July 1 of the prior year, A1A provided Jenna with an employee loan in the amount of $12,000 at the annual interest rate of 1%. The loan requires annual principal repayments of $2,600 on June 30 of each year. Jenna made the first annual repayment on June 30 of the current year. Canada Revenue Agency's interest rates for the calendar quarters in the current year are as follows. Quarter Rates Quarter #1 (January 1 to March 31) 3% Quarter #2 (April 1 to June 30) 2% Quarter #3 (July 1 to Sept 30) 3% Quarter #4 (Oct 1 to Dec 31) 3% In the current year, Jenna paid the following amount personally: CPA professional dues (annual) in the amount of $1,200 (paid on June 30). Employment expenses: Jenna paid for supplies (used for employment purposes) in the amount of $1,300 (expenses occurred throughout the year). A1A Ltd. has authorized these expenses and filed Form T2200 accordingly. Print Done X Required 1. For each amount paid by A1A Ltd. that was not reported on Jenna's T4 slip, determine if the amount is a taxable or non-taxable benefit. 2. Calculate the total amount of taxable benefits for Jenna in the current year and provide appropriate references to the ITA. 3. Calculate Jenna's net employment income for the current year in accordance with sections 5 to 8 of the Income Tax Act. Round your calculations to the nearest dollar, and provide appropriate references to the ITA. Print Done Jenna Wilson resides in Ottawa, ON, and has been employed by A1A Ltd. for a number of years as its accountant. (Click on the icon to view more information Part 1.) (Click on the icon to view more information Part 2.) (Click on the icon to view more information Part 3.) Required Requirement 2. Calculate the total amount of taxable benefits for Jenna in the current year. Complete the table below. (Round your answers to the nearest cent, and provide appropriate references to the ITA.) Taxable Benefits Amount ITA Reference Life Insurance $ 400.00 Public health care 1,500.00 Auto - reduced standby charge 5,413.92 Auto - operating cost 2600.00 ITA S.6(4) ITA S.6(1)(a) ITA S.6(2) or 6(1)(e) ITA S.6(1)(k) ITA S.6(1)(0) ITA S.6(1)(b) ITA S.6(9) and 80.4 Reimbursement - for Jenna's mother's travel 3,000.00 Allowance - for incidental expenses 4,800.00 Loan interest 210.08 4800.00 Stock options ITA S.7(1) 22724.00 Total taxable benefits pursuant to ITA 6 and ITA 7 Choose from any list or enter any number in the input fields and then click Check Answer. 0 X More Info Jenna's T4 slip for the current year indicates the following amounts were deducted from her gross salary of $78,000. Deductions Amounts CPP (maximum for the year*) El (maximum for the year*) RPP $4,500.00 Pension adjustment 9,000.00 Income Tax deducted 20,000.00 Union Dues 300.00 Charitable donations 1,200.00 See the current year's tax rate sheet to determine the CPP and El reported on the T4 * slip. The following amounts are paid by A1A Ltd. and not included on Jenna's current year T4 slip. Paid by A1A Ltd. Amounts Private health insurance plan premiums $1,800.00 Public health insurance plan premiums 1,500.00 Group term life insurance policy premiums 400.00 Allowance for incidental expenses ($400 per month) 4,800.00 Print Done X i More Info A1A Ltd. provided Jenna with a motor vehicle for the entire year, and the company also paid for all operating costs for the vehicle, with $5,250 paid for operating costs in the current year. The vehicle was purchased by A1A Ltd. three years ago at a cost of $47,500 (incl. GST). In the current year, Jenna drove 22,000 kilometres; 9,500 kilometres were personal, and 12,500 were for employment purposes. On October 1 of the current year, Jenna purchased 1,600 shares of A1A Ltd. under a stock option plan. A1A Ltd. is a Canadian public corporation. The following information is provided. = Stock Options Option granted on Jan. 1 of the prior year, FMV $12 per share Option price $12 per share Option exercised on July 1 of the current year, FMV $18 per share * Note: On December 31, Jane continues to hold the 1,600 A1A Ltd. shares since she anticipates they will appreciate in value. In the current year, her mother travelled with her to Calgary when Jenna attended a five-day conference for accountants. A1A Ltd. reimbursed her for the full cost of $5,200, of which $3,000 (including GST) was for expenses she incurred for her mother. Print Done X More Info On July 1 of the prior year, A1A provided Jenna with an employee loan in the amount of $12,000 at the annual interest rate of 1%. The loan requires annual principal repayments of $2,600 on June 30 of each year. Jenna made the first annual repayment on June 30 of the current year. Canada Revenue Agency's interest rates for the calendar quarters in the current year are as follows. Quarter Rates Quarter #1 (January 1 to March 31) 3% Quarter #2 (April 1 to June 30) 2% Quarter #3 (July 1 to Sept 30) 3% Quarter #4 (Oct 1 to Dec 31) 3% In the current year, Jenna paid the following amount personally: CPA professional dues (annual) in the amount of $1,200 (paid on June 30). Employment expenses: Jenna paid for supplies (used for employment purposes) in the amount of $1,300 (expenses occurred throughout the year). A1A Ltd. has authorized these expenses and filed Form T2200 accordingly. Print Done X Required 1. For each amount paid by A1A Ltd. that was not reported on Jenna's T4 slip, determine if the amount is a taxable or non-taxable benefit. 2. Calculate the total amount of taxable benefits for Jenna in the current year and provide appropriate references to the ITA. 3. Calculate Jenna's net employment income for the current year in accordance with sections 5 to 8 of the Income Tax Act. Round your calculations to the nearest dollar, and provide appropriate references to the ITA. Print Done
