Assignment 2 _Updated Dec 2022
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Algonquin College *
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Course
2262
Subject
Accounting
Date
May 16, 2024
Type
Pages
4
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Assignment 2 Pre-reading and resources for Assignment 2: 1.
Calculating Automobile Benefits: https://www.canada.ca/en/revenue-
agency/services/tax/businesses/topics/payroll/benefits-
allowances/automobile/automobile-motor-vehicle-benefits.html 2.
Moving expenses and its eligibility: https://www.canada.ca/en/revenue-
agency/services/tax/individuals/topics/about-your-tax-return/tax-
return/completing-a-tax-return/deductions-credits-expenses/line-21900-
moving-expenses.html https://www.canada.ca/en/revenue-
agency/services/tax/individuals/topics/about-your-tax-return/tax-
return/completing-a-tax-return/deductions-credits-expenses/line-21900-
moving-expenses/line-21900-expenses-you-deduct.html https://www.canada.ca/en/revenue-
agency/services/tax/individuals/topics/about-your-tax-return/tax-
return/completing-a-tax-return/deductions-credits-expenses/line-21900-
moving-expenses/line-21900-expenses-you-cannot-deduct.html 3.
Deductions, credits and expenses: https://www.canada.ca/en/revenue-
agency/services/tax/individuals/topics/about-your-tax-return/tax-
return/completing-a-tax-return/deductions-credits-expenses/deductions-
credits-expenses.html
Assignment 2 Required: Answer the following three (3) questions in the accompanying excel file by the name of Assignment 2- Marking File. Follow the format of the attached excel and directly input your answers there. Submit the completed excel file in the assignment submission. Follow the following file naming convention: Your First Name_Last Name_ Assignment 2
Question 1 •
Peterman Inc. provides an automobile to Ms. Winters for her to use in carrying out her employment duties. •
Ms. Winters is given full possession of the car and is allowed to use it for personal needs. However, when she is not using it for employment or personal activities, it must be returned to Peterman’s premises so that it can be used by other employees. •
The automobile was purchased in 2019 for $42,000 and, during the years 2019, 2020, and 2021 the Company has deducted maximum CCA. •
During 2022, Ms. Winters drove the car 52,000 kilometers, with the Company paying for all of the operating costs. These costs totaled $11,350 during the year. Required: Ignore all GST/PST/HST implications. Indicate the minimum taxable benefit that would be allocated to Ms. Ms. Winters in each of the following Cases: Case A
Ms. Winters has use of the car for 11 months of the year. Personal use during the year totals 8,000 kilometers. Case B Ms. Winters has use of the car for 9 months of the year. Personal use during the year totals 15,000 kilometers. Case C
Ms. Winters has use of the car for 7 months of the year. Employment use during the year totals 9,000 kilometers.
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Related Questions
INVOICE issued date 05/05/2020 as below:
You have received an invoice from one of our suppliers and you are required to prepare:
(i) Double entry for the invoice you have received base on the account and supplier number provided. (ii) Base on tax point of view, specify each item whether it is Capital or Revenue expenditure.
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Required:
Answer the following questions in section C2.6.1 Aligning COA and Tax Return.
QBO COA
1. Cost of Goods Sold
2. Advertising and Marketing
IRS Schedule C (Form 1040)
Schedule C Line
Schedule C Line
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1. What loan from the federal government given to individual states is used to provide unemployment benefits to state residents?
Answer:
A.
SUTA Advances
B.
FUTA Advances
C.
Title XII Advances
D.
Title 15 Advances
2. The SUTA tax rate is determined by an employer’s _____.
Answer:
A.
credit reduction
B.
FUTA tax rate
C.
experience rating
D.
Medicare tax rate
3. Identify each item as associated with Form 1099-NEC, Form 1096, or both.
A. Displays earnings for one individual
Form 1099-NEC
Form 1096
Both
B. Displays earnings for multiple individuals
Form 1099-NEC
Form 1096
Both
C. Requires a signature
Form 1099-NEC
Form 1096…
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Question 1
Under which circumnstances should a company disclose contingent liabilites in the footnotes of the financial statements?
I. When it is probable the company will suffer a loss and the liability can be measured
II. When it is probable the company will suffer a loss but the liability cannot be measured
III. When is it only reasonably possible that the company will suffer a loss
Il and II
O l only
I and II
O , I, II
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Which of the following would be included in the journal entry to record the payment of accrued sales tax? Select one:
O a. A credit to Sales tax expense
O b. A debit to Sales tax expense
O c. A credit to Sales tax payable
O d. A debit to Sales tax payable
arrow_forward
Section 12.2 Assessment
QUICK CHECK
Calculate Given the informa-
tion above, use Form 1040EZ in
Figure 12.4 on pages 394 and 395 and the
corresponding tax table in Figure 12.5 on
page 397 to determine whether Shirley will
owe the government money or will obtain
a refund. How much money will she owe,
1. Who must file a federal income tax return?
2. What are the three basic tax forms discussed
in this section?
3. What documents do you need to begin to
prepare your tax return?
THINK CRITICALLY
or how much will her refund be?
4. Briefly describe situations in which it
would be advantageous to use Form 1040A
instead of Form 1040EZ. When would you
use Form 1040EZ?
SOLVE MONEY PROBLEMS
6. Planning for Tax Time Poor Fred.
Tax time is drawing near, and he does not
know how to begin to prepare his income
tax return. He has piles of forms and other
paperwork, but he just cannot figure out
what to do with them. Fred needs help,
USE MATH SKILLS
5. A Taxing Question Last year, Shirley,
a single…
arrow_forward
PSb 5-1 Determine the Applicable FUTA Tax Rate
For each of the following businesses, determine the applicable FUTA tax rate for 2020 based on the locations listed below:
1: A business operating in the U.S. Virgin IslandsFUTA tax rate = %
2: A business operating in Columbus, OhioFUTA tax rate = %
3: A business operating in Austin, TexasFUTA tax rate = %
4: A business operating in Oakland, CaliforniaFUTA tax rate = %
5: A business operating in Birmingham, AlabamaFUTA tax rate
arrow_forward
PSc 3-5 Calculate Federal Income Tax Withholding Using Two Methods (pre-2020 Form W-4)
For each employee listed, use both the wage-bracket method and the percentage method to calculate federal income tax withholding for an employee who has submitted a pre-2020
Form W-4. Refer to the Federal Tax Tables in Appendix A of your textbook.
NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.
Publication 15-T (2020)
1: Michael Daugherty (married; 5 federal withholding allowances) earned weekly gross pay of $855. For each period, he makes a 403(b) retirement plan contribution of 12%
of gross pay.
Using wage-bracket method: Federal income tax withholding = $
Using percentage method: Federal income tax withholding = $
2: Carol Harrison (single; 0 federal withholding allowance) earned daily gross pay of $250. For each period, she makes a 401(k) contribution of 10% of gross pay.
Using wage-bracket…
arrow_forward
Question 3: Which of the following is taxable for Social Security tax?
Answer:
А.
O Contributions to a 403(b) plan
В.
O Contributions to a flexible spending account
С.
O Contributions to a dependent care flexible spending account
D.
O Contributions to a cafeteria plan
arrow_forward
PSc 3-4 Calculate Federal Income Tax Withholding Using the Percentage Method (pre-2020 Form W-4)
For each employee listed, use the percentage method to calculate federal income tax withholding for an employee who has submitted a pre-2020 Form W-4. Refer to the Federal
Tax Tables in Appendix A of your textbook.
NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.
Publication 15-T (2020)
1: Tony Daniels (Married; 4 federal withholding allowances) earned weekly gross pay of $800.
Federal income tax withholding = $
2: Mario Gonzales (married; 5 federal withholding allowances) earned biweekly gross pay of $2,025. He participates in a flexible spending account, to which he contributes
$100 during the period.
Federal income tax withholding = $
3: Angela Brown (single; 3 federal withholding allowances) earned monthly gross pay of $5,170. For each period, she makes a 401(k) contribution of 12%…
arrow_forward
Select the correct order of the line items listed
below based on the sequence of their appearance
on Form US 1040. Number the items from the
lowest number (1) going to the first item to appear
on the return and the last number going to the
final item from the list to appear on the return.
Question 5 options:
Wages
Taxes withheld and quarterly tax payments
Non-refundable tax credit
Student Loan Interest Deduction
Standard Deduction
Interest Income
Refund or Taxes Due
Computed income tax before non-refundable tax
credits
Taxable Income
Adjusted Gross Income (AGI)
arrow_forward
PSb 3-4 Calculate Federal Income Tax Withholding Using the Percentage Method (pre-2020 Form W-4)
For each employee listed, use the percentage method to calculate federal income tax withholding for an employee who has submitted a pre-2020 Form W-4. Refer to the Federal
Tax Tables in Appendix A of your textbook.
NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.
Publication 15-T (2020)
1: Juan Hoffman (single; 2 federal withholding allowances) earned weekly gross pay of $445.
Federal income tax withholding = $
2: William Harrison (single; 1 federal withholding allowance) earned biweekly gross pay of $990. He contributes $75 to a flexible spending account during the period.
Federal income tax withholding = $
3: Loretta Goulet (married; 3 federal withholding allowances) earned monthly gross pay of $2,800. For each period, she makes a 401(k) contribution of 14% of gross pay.
Federal…
arrow_forward
What steps must an employer follow in sequential form to calculate an employee's income tax
deduction:
a.
First calculate CPP & E.I
b.
First complete the TD1 form then calculate CPP & E.I
C.
First establish the 'claims code' using TD1 then use the tax tables
d.
Complete the tax credits form then go straight to tax tables
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Question 1: Which of the following appears on the W-3 Form but does not appear on the W-2 Form?
Answer:
A.
O Federal income tax withheld
В.
O Kind of payer
С.
Social Security wages
D.
Dependent care benefits
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Page 3 of 4
I. TAXABLE OR NON-TAXABLE INCOME
Put a CHECK MARK on the appropriate column.
If the benefit is taxable or has a taxable portion, indicate the taxable amount on the column provided.
If TAXABLE, how much is
the taxable amount FOR
THE YEAR?
BENEFIT
PURELY NON-
TAXABLE
TAXABLE
1. Laundry allowance amounting to P 4,500 a year
2. Uniform allowance amounting to P6,500 a year
3. Gifts given during Christmas amounting to
P8,000.
4. One sack of rice (50 kg) each month. The rice is
valued at P50.00 per kilo.
5. A one-time actual medical assistance amounting
to P 25,000.00 was received during the year.
IV. PROBLEM SOLVING
Solve the following problems.
Write your final answer on the space provided. Present your solution at the back page or attach a separate
sheet if necessary.
ANSWER
QUESTION
Leah sells gadgets. She is given 13% 0omm
1
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SSS Problem 2–1
(Individual Income Tax Instalments)
In January 2021, you are asked to provide tax advice to Ms. Leslie Garond. She has provided
you with the following information about her combined federal and provincial income taxes
payable and the income taxes withheld by her employer for the 2019 and 2020 taxation
years:
Year
Taxes Payable
Taxes Withheld
2019
$22,000
18,000
$9,500
9,700
2020
For 2021, she estimates that her combined federal and provincial income taxes payable will be
$14,000 and that her employer will withhold a total of $9,850 in income taxes.
She has asked you whether it will be necessary for her to pay instalments in 2021 and, if so,
what the minimum amounts that should be paid are and when they are due.
Required: Advise Ms. Garond as to whether or not she is required to make instalment
payments for 2021. If instalments are required, calculate the alternative amounts that could
be paid under each alternative. Indicate which alternative would be best and the dates…
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Question 3: How much FUTA tax would an employer in a non-credit-reduction state owe if an employee has earned $6,400 to date and has current period
taxable pay of $1,500?
Answer:
A.
O $3.60
В.
O 59
C.
O $36
D.
O $90
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I. Define: a. Minimum wage
b. E.O. 226
c. BMBE Law
d. CDA
e. Tax law vs gaap
f. Statutes and Presidential Decrees
g. Judicial Decision or case laws
h. Local Ordinances
i. Ad Valorem
j. Sin Taxes
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SEE MORE QUESTIONS
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Related Questions
- INVOICE issued date 05/05/2020 as below: You have received an invoice from one of our suppliers and you are required to prepare: (i) Double entry for the invoice you have received base on the account and supplier number provided. (ii) Base on tax point of view, specify each item whether it is Capital or Revenue expenditure.arrow_forwardRequired: Answer the following questions in section C2.6.1 Aligning COA and Tax Return. QBO COA 1. Cost of Goods Sold 2. Advertising and Marketing IRS Schedule C (Form 1040) Schedule C Line Schedule C Linearrow_forward1. What loan from the federal government given to individual states is used to provide unemployment benefits to state residents? Answer: A. SUTA Advances B. FUTA Advances C. Title XII Advances D. Title 15 Advances 2. The SUTA tax rate is determined by an employer’s _____. Answer: A. credit reduction B. FUTA tax rate C. experience rating D. Medicare tax rate 3. Identify each item as associated with Form 1099-NEC, Form 1096, or both. A. Displays earnings for one individual Form 1099-NEC Form 1096 Both B. Displays earnings for multiple individuals Form 1099-NEC Form 1096 Both C. Requires a signature Form 1099-NEC Form 1096…arrow_forward
- Question 1 Under which circumnstances should a company disclose contingent liabilites in the footnotes of the financial statements? I. When it is probable the company will suffer a loss and the liability can be measured II. When it is probable the company will suffer a loss but the liability cannot be measured III. When is it only reasonably possible that the company will suffer a loss Il and II O l only I and II O , I, IIarrow_forwardWhich of the following would be included in the journal entry to record the payment of accrued sales tax? Select one: O a. A credit to Sales tax expense O b. A debit to Sales tax expense O c. A credit to Sales tax payable O d. A debit to Sales tax payablearrow_forwardSection 12.2 Assessment QUICK CHECK Calculate Given the informa- tion above, use Form 1040EZ in Figure 12.4 on pages 394 and 395 and the corresponding tax table in Figure 12.5 on page 397 to determine whether Shirley will owe the government money or will obtain a refund. How much money will she owe, 1. Who must file a federal income tax return? 2. What are the three basic tax forms discussed in this section? 3. What documents do you need to begin to prepare your tax return? THINK CRITICALLY or how much will her refund be? 4. Briefly describe situations in which it would be advantageous to use Form 1040A instead of Form 1040EZ. When would you use Form 1040EZ? SOLVE MONEY PROBLEMS 6. Planning for Tax Time Poor Fred. Tax time is drawing near, and he does not know how to begin to prepare his income tax return. He has piles of forms and other paperwork, but he just cannot figure out what to do with them. Fred needs help, USE MATH SKILLS 5. A Taxing Question Last year, Shirley, a single…arrow_forward
- PSb 5-1 Determine the Applicable FUTA Tax Rate For each of the following businesses, determine the applicable FUTA tax rate for 2020 based on the locations listed below: 1: A business operating in the U.S. Virgin IslandsFUTA tax rate = % 2: A business operating in Columbus, OhioFUTA tax rate = % 3: A business operating in Austin, TexasFUTA tax rate = % 4: A business operating in Oakland, CaliforniaFUTA tax rate = % 5: A business operating in Birmingham, AlabamaFUTA tax ratearrow_forwardPSc 3-5 Calculate Federal Income Tax Withholding Using Two Methods (pre-2020 Form W-4) For each employee listed, use both the wage-bracket method and the percentage method to calculate federal income tax withholding for an employee who has submitted a pre-2020 Form W-4. Refer to the Federal Tax Tables in Appendix A of your textbook. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. Publication 15-T (2020) 1: Michael Daugherty (married; 5 federal withholding allowances) earned weekly gross pay of $855. For each period, he makes a 403(b) retirement plan contribution of 12% of gross pay. Using wage-bracket method: Federal income tax withholding = $ Using percentage method: Federal income tax withholding = $ 2: Carol Harrison (single; 0 federal withholding allowance) earned daily gross pay of $250. For each period, she makes a 401(k) contribution of 10% of gross pay. Using wage-bracket…arrow_forwardQuestion 3: Which of the following is taxable for Social Security tax? Answer: А. O Contributions to a 403(b) plan В. O Contributions to a flexible spending account С. O Contributions to a dependent care flexible spending account D. O Contributions to a cafeteria planarrow_forward
- PSc 3-4 Calculate Federal Income Tax Withholding Using the Percentage Method (pre-2020 Form W-4) For each employee listed, use the percentage method to calculate federal income tax withholding for an employee who has submitted a pre-2020 Form W-4. Refer to the Federal Tax Tables in Appendix A of your textbook. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. Publication 15-T (2020) 1: Tony Daniels (Married; 4 federal withholding allowances) earned weekly gross pay of $800. Federal income tax withholding = $ 2: Mario Gonzales (married; 5 federal withholding allowances) earned biweekly gross pay of $2,025. He participates in a flexible spending account, to which he contributes $100 during the period. Federal income tax withholding = $ 3: Angela Brown (single; 3 federal withholding allowances) earned monthly gross pay of $5,170. For each period, she makes a 401(k) contribution of 12%…arrow_forwardSelect the correct order of the line items listed below based on the sequence of their appearance on Form US 1040. Number the items from the lowest number (1) going to the first item to appear on the return and the last number going to the final item from the list to appear on the return. Question 5 options: Wages Taxes withheld and quarterly tax payments Non-refundable tax credit Student Loan Interest Deduction Standard Deduction Interest Income Refund or Taxes Due Computed income tax before non-refundable tax credits Taxable Income Adjusted Gross Income (AGI)arrow_forwardPSb 3-4 Calculate Federal Income Tax Withholding Using the Percentage Method (pre-2020 Form W-4) For each employee listed, use the percentage method to calculate federal income tax withholding for an employee who has submitted a pre-2020 Form W-4. Refer to the Federal Tax Tables in Appendix A of your textbook. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. Publication 15-T (2020) 1: Juan Hoffman (single; 2 federal withholding allowances) earned weekly gross pay of $445. Federal income tax withholding = $ 2: William Harrison (single; 1 federal withholding allowance) earned biweekly gross pay of $990. He contributes $75 to a flexible spending account during the period. Federal income tax withholding = $ 3: Loretta Goulet (married; 3 federal withholding allowances) earned monthly gross pay of $2,800. For each period, she makes a 401(k) contribution of 14% of gross pay. Federal…arrow_forward
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SEE MORE QUESTIONS
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Recommended textbooks for you
- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
Century 21 Accounting Multicolumn Journal
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ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage