Quiz 14,15,16,17

successful first year and as result, he had net las ow ing that year of $85,000. Business dropped in his second year, resulting in net ax ow ing of only S1.00 This year, business has picked up again and he expects to have net tax owing Terri Jones, who has had net taxable capital gains on real estate in excess of $40,000 in each of the last two D. yean, and who expects to have similar gains this year 14. Larry Shoet has self-employment income of $62.000 in 2015. Prior to this year, he was employed full-time and his employer's withholdings more than covered his tax liability for the year Larry estimates that, based on his self-employment income, his net tax owing for 2015 will be $8,000. Which of the following statements is true? A. Larry must file his return for 201 5 by April 30, 2016. B. Larry should pay instalments in 2015 C Larry must pay his income tax for 2015 by June 15, 2016. D. IfLarry has as much income in 2016 as he had in 2015, he will have to pay instalments during 2016. I5, Individuals are required to pay installments A. When net tax owing is over $3,000 for any one of the past two years B. When net tax ow ing is over $3,000 for the current year and both of the two prior years C. when net tax owing is over $3.000 for the current year and one of the two prior years. D. When net tax owing is over $3,000 for the current year only. 16. One way to ensure that no interest will be assessed for late instalments is: A. To pay the amounts provided by the CRA in their instalment reminder on or before the required dates. B. To pay the lowest amount calculatod using the 3 altermative cakulations on or before the required dates. C. To pay the estimated tax owing for the current year on the first instalment due date. D. To pay the averape of the three amounts calculated using the 3 alternative calculations on or before the required dates. Interest and Penalties 17. Dora Chen has determined that her minimum tax instalments for 2015 are $8,000 per quarter. She also owes $30,000 on her credit card, which carries an interest rate of 20%She has destroyed her credit card, so no more can be put on it. Dora is unable to pay both the entire instalment amounts and her credit card balance, but she does have $8,000 in cash each quarter for her debts. Which of the following would be the best choice for Dora from a financial planning perspective? A. Dora should pay off her credit card balance before making instalment payments B. Dora must make all her instalment payments, even if it means she cannot pay anything off on her credit card this year C. Dora should split her payments equally between the credit card balance and the instalment liability, in order to show the CRA that she is trying her best to meet her obligations to them D. Dora should pay her first two instalments and them make payments on her credit card balance a CCPC eligible for the small business deduction, has a March 31 year end. Due to the death of the ownerimanager, the tax return for the year ended March 31, 2014 was not filed until May 12, 2016. The unpaid tax on March 31. 2014 was $15,500. Lang Lang Lad. has mever filed a return late before. What is the total late file penalty that the corporation is required to pay? (Do not include any interest payable.) A. $775 B. $2,635 C. $1,860 D. $3,720 19. Which of the following scenarios will result in a penalty being charged by the CRA? A. A taxpayer pays less than the required amount of instalments. B. A taxpayer who is owed a refund filles their tax return late. C. A tuxpayer who has a balance owing files their tax return late, with the payment enc losed. D. A taxpayer who has a balance owing files their tax return on time, but does not include a payment. successful first year and as result, he had net las ow ing that year of $85,000. Business dropped in his second year, resulting in net ax ow ing of only S1.00 This year, business has picked up again and he expects to have net tax owing Terri Jones, who has had net taxable capital gains on real estate in excess of $40,000 in each of the last two D. yean, and who expects to have similar gains this year 14. Larry Shoet has self-employment income of $62.000 in 2015. Prior to this year, he was employed full-time and his employer's withholdings more than covered his tax liability for the year Larry estimates that, based on his self-employment income, his net tax owing for 2015 will be $8,000. Which of the following statements is true? A. Larry must file his return for 201 5 by April 30, 2016. B. Larry should pay instalments in 2015 C Larry must pay his income tax for 2015 by June 15, 2016. D. IfLarry has as much income in 2016 as he had in 2015, he will have to pay instalments during 2016. I5, Individuals are required to pay installments A. When net tax owing is over $3,000 for any one of the past two years B. When net tax ow ing is over $3,000 for the current year and both of the two prior years C. when net tax owing is over $3.000 for the current year and one of the two prior years. D. When net tax owing is over $3,000 for the current year only. 16. One way to ensure that no interest will be assessed for late instalments is: A. To pay the amounts provided by the CRA in their instalment reminder on or before the required dates. B. To pay the lowest amount calculatod using the 3 altermative cakulations on or before the required dates. C. To pay the estimated tax owing for the current year on the first instalment due date. D. To pay the averape of the three amounts calculated using the 3 alternative calculations on or before the required dates. Interest and Penalties 17. Dora Chen has determined that her minimum tax instalments for 2015 are $8,000 per quarter. She also owes $30,000 on her credit card, which carries an interest rate of 20%She has destroyed her credit card, so no more can be put on it. Dora is unable to pay both the entire instalment amounts and her credit card balance, but she does have $8,000 in cash each quarter for her debts. Which of the following would be the best choice for Dora from a financial planning perspective? A. Dora should pay off her credit card balance before making instalment payments B. Dora must make all her instalment payments, even if it means she cannot pay anything off on her credit card this year C. Dora should split her payments equally between the credit card balance and the instalment liability, in order to show the CRA that she is trying her best to meet her obligations to them D. Dora should pay her first two instalments and them make payments on her credit card balance a CCPC eligible for the small business deduction, has a March 31 year end. Due to the death of the ownerimanager, the tax return for the year ended March 31, 2014 was not filed until May 12, 2016. The unpaid tax on March 31. 2014 was $15,500. Lang Lang Lad. has mever filed a return late before. What is the total late file penalty that the corporation is required to pay? (Do not include any interest payable.) A. $775 B. $2,635 C. $1,860 D. $3,720 19. Which of the following scenarios will result in a penalty being charged by the CRA? A. A taxpayer pays less than the required amount of instalments. B. A taxpayer who is owed a refund filles their tax return late. C. A tuxpayer who has a balance owing files their tax return late, with the payment enc losed. D. A taxpayer who has a balance owing files their tax return on time, but does not include a payment