Fall 2010 MT 1 Q1 Marking Key Nov 12

Fall 2010 MT 1 Q1 Marking Key Nov 12 - 2400 0.5 Car...

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Question 1 correction in red Marks Part A Salary 90000 0.5 Commission 10000 0.5 RPP contribution 5000 1 Medical premiums not taxable benefit 0 0.5 Life insurance 250 1 Employer RPP not taxable benefit 0 0.5 Gym membership not employer's benefit 1800 1 Golf membership no benefit as primiarily for employer benefit 0 0.5 Gifts 2 x $400 $500 300 1 Disability received tax free as employee pay all plan 0 0.5 Stock option benefit on 2000 shares = 2000 x ($12 $10) 4000 1 Taxable capital gain on 2000 shares Gain 2000 x ($15 $12) 6000 1 Half taxable 3000 0.5 Loan interest benefit February 28 June 30 123/365 x 20000 x 4% 270 1 July 1 December 31 184/365 x 20000 x 3% 302 1 Interest paid: 2% x 307/365*20000 336 236 0.5 80.5 deemed interest paid to buy shares 236 0.5 Actual interest paid to buy shares 336 0.5 Eligible dividend 2000 x $5 x 1.44 14400 1 Moving expense reimbursment not taxable 0 0.5 Home loss reimbursment 1/2 x (20000 15000) 2500 1 Housing loan benefit $100,000 @ 2% 2000 1 Interest paid $100000 @ 1% 1000 1000 0.5 Car allowance not by km $400 x 12 4800 0.5 Entertainment allowance
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Unformatted text preview: 2400 0.5 Car expenses Gas 3000 0.5 Insurance 1500 0.5 Licence 135 0.5 Repairs 400 0.5 Lease 4800 0.5 9835 at 30/40 7376 0.5 Parking 500 0.5 Subtotal of 8(1)(h)/(h.1) claim is less than $10K comm 7876 Entertainment 50% of 4800 2400 0.5 Property taxes: $2,000 x 10% 200 0.5 House insurance: $800 x 10% 80 0.5 Separate phone line 600 0.5 Internet connection 400 0.5 Maximum claim limited to commission 11556 10000 0.5 8(1)(i) claim for home office Heat & hydro @ 10% 120 0.5 Office supplies 200 0.5 Net income 118794 110(1)(d) deduction = 1/2 stock option benefit because not in money 2000 1 Home relocation loan deduction 25000 x 2% 500 1 Taxable income 116294 Tax first 81941 15160 0.5 balance @ 26% 8932 24092 0.5 Basic 10382 0.5 CPP 2163 0.5 EI 747 0.5 Employment 1051 0.5 14343 at 15% 2151 0.5 Dividend tax credit $4400 @ 10/17 2588 4740 1 19352 32 Max 32...
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