PP Ltd$.,$ a client of your firm, has a November $30$ taxation year end and has requested you to advise them on what its monthly instalments for the $2022$ taxation year will be$.$ Its income tax payable for its November $30,2020$ and November $30,2021$ taxation years were $$13,800$ and $$13,200,$ respectively. Its estimated income tax payable for the November $30,2022$ year are $$14,400.$ PP Ltd$.$ wants to pay the lowest amount possible, without incurring interest penalties. What would its instalments be$?$

Question $3$ Answer

a$.$

Two monthly payments at $$1,150$ each, followed by ten monthly payments at $$1,090$ each.

b$.$

Twelve payments at $$1,200$ per month.

c$.$

Twelve payments at $$1,100$ per month.

d$.$

Twelve payments at $$1,150$ per month.