Byrd & Chen’s Canadian Tax Principles 2020 – 2021 Ch.2 Assignment Questions 1&5 PDF

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Assignment Problems Chapter 2 #1 A. Tax payable Case 1 Tax Owing Case 2 2018 18,880 14,480 4,400 19,280 2019 20,320 19,720 600 14,880 2020 (estimated) 21,760 18,640 3,120 18,560 Case 1: Net tax owing exeeds $3,000 in current year and 780 150 in one of the two preceding years; instalments required Case 2: Net tax owing exeeds $3,000 in current year and 1100 800 in one of the two preceding years; instalments required Case 3: Net tax owing does not exeed $3,000 in current year; no instalments required Case 1: Alternative Instalment remittence 1. Quarterly instalments of 780 (3,120/4) based on current year estimate 2. Quarterly instalments of 150 (600/4) based on the first preceding year 3. two Instalment of 1100 (4400/4) based on the second preceding year; no further payments required. Used in CRA's instalment reminder The best approach is quarterly instalments of 150 Case 2: Alternative Instalment remittence 1. Quarterly instalments of 800 (3,200/4) based on current year estimate 2. Quarterly instalments of 1360 (5440/4) based on the first preceding year 3. two Instalment of 0 (-400...