{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

S2 4561 midterm 1 Q1 !solution

S2 4561 midterm 1 Q1 !solution - basketball tickets...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Question One Salary 65,000 Commissions 9,000 0.5 Group disability premiums - benefit provision specifically excludes 1 for explanation Financial counselling 375 1 Rec facilities - no benefit as per CRA admin position, all employees entitled 1 for explanation Stock option benefit 300 shares sold in '09 (rest of benefit deferred) 300 x (26 - 22) 1,200 1 no mark if used 500 shares TCG on sale of 300 shares: .5 x 300 x (28-26) 300 1 Allowances Travel (not reasonable amount) 1,800 1 Cell phone 600 0.5 Operating cost benefit - gas 1200 x 20% 240 1 Income before deductions 78,515 Deductions: must determine whether 8(1)(f) or (h) and (h.1) Travel expenses plane 2500 0.5 meals 900 x 50% 450 0.5 hotels 2850 5800 0.5 Car expenses 2700 x 80% 2160 1 (above less than 9,000 commission, so 8(1)(f) also available) Other expenses only for commissioned salespersons (8(1)(f))
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: basketball tickets - entertainment $2,550 x 50% 1275 1 House insurance 70 1 Property tax 265 1 Blackberry monthly charges 400 2010 1 Total of above but limited to commission income 9970 Limited to commission income 9,000 1.5 cost of blackberry, no CCA allowed 1 for explanation mortgage interest - no provision allows deduction 1 for explanation other home office expenses Utilities 485 0.5 Supplies 295 780 0.5 Interest on car loan < of 1) Actual amount 3700 2.) $300 x 365/30 3650 1 Lesser amount x 80% emp use 3650 x 80% 2,920 1 interest on office furniture - no provision allows deduction 1 for explanation CCA on car 23,075 x 30% x 80% 5,538 1 RPP contribution 8(1)(m) 850 1 Total deductions 19,088 Net income 59,427 24 marks...
View Full Document

  • Summer '10
  • JosephFrankovic
  • Generally Accepted Accounting Principles, CCA, 3rd millennium, operating cost benefit, CRA admin position, Group disability premiums

{[ snackBarMessage ]}