S2 4561 midterm 1 Q1 !solution

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

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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))
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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...
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This note was uploaded on 03/24/2012 for the course ADMS 4561 taught by Professor Josephfrankovic during the Summer '10 term at York University.

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