Doug is an individual and an employee. He had taken out loan on 1 March of the previous year to buy dividend producing shares. He paid interest of $200 per month on thefirst day of each month. Doug paid monthly for this current year until 1 January and on 1 February he prepaid 16 months interest. The interest deduction that Doug canclaim for the current year is

The objective of the question is to calculate the interest deduction that Doug can claim for the…

Answered: Doug is an individual and an employee.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

April receives $50 every six months in interest income from her bond investment. She paid $900 for the bond and it will mature in 7 years for $1,000. She can reinvest the semi-annual interest income at 5% compounded annually. Her salary is $83,000 a year. Her marginal tax rate is 40%, which is also the applicable tax rate on interest income. The tax rate on dividend income is 30%. The tax rate on capital gain income is 20%. 1. What is her EAR before-tax if she does not reinvest the interest income? 2. What is her EAR before-tax if she reinvests the interest income? 3. What is her EAR after-tax if she reinvests the interest income and taxes are paid annually?
Roman paid $68,800 as a down payment towards an apartment purchase and received a mortgage from a bank for the remaining amount; he is to pay $6,560 at the end of every month for 21 years at an interest rate of 3.34% compounded monthly to repay the mortgage. a) What was the purchase price of the apartment? $ b) What was the total amount Roman paid over the 21-year period to repay the mortgage? $ c) How much interest was charged on the mortgage? $ TVM Solver
A citizen receives a notification from the CRIM specifying that his tax obligation is $3,000 per year ($1,500 per semester). This citizen pays on the 160th day after notification. How much will this citizen end up paying?
Mr. Chua invest 45,000 into two different accounts which pay 7% and 8% annual interest. If he earned a total of 45,000 for the year, how much did he invest at each rate?
6. An employee, who had been with the company for 6 years, passed away on August 31, 2021. She had been earning a monthly salary of $5,900 and had regular CPP and El deductions taken off this salary on every cheque up to and including her August 31 payment. Calculate: a) Her maximum CPP contribution for the year. b) How much should be refunded to her estate, if any? cpp rate 5.45% cpp annual basic exemption $3,500 maximum insurable earnings $56,300 premium rate 1.58% Maximum annual employee premium $889.54
Jones invests USD 250.000 in a building society account. At the end of the year her account iscredited with 2% interest. How much interest had he earned in the year?
A. William’s basic annual salary is R240 000. He receives an annual bonus of 80% of his basic monthly salary, payable in March each year. His pension deduction is 8% of the basic salary and income tax is levied at 20% on his taxable income. Calculate the net salary of A. William for March.
Frank invests $ 2500 dollars into an account earning interest compounded quarterly. After 13 years there is $ 3050 in the account. What was the interest rate?
At the year end, Harold has a receivables balance of $100,000 and an allowance for receivebles of $5000. He has not yet accounted for a receipt of $500 in respect of a debt which he has previously provided against or a receipt of $1000 in respect of a debt which had been written off in the previous year. Harold wishes to maintain his allowance for receivables at 7% of receivables. What balance will be shown in his statement of financial position at the year end for receivables and the allowance for receivables?
Debbie earns an annual salary of $80,000 per year. Paid Biweekly. She contributes 2% of her biweekly gross salary to RRSP. She receives a group life non cash taxable benefit of $35.00 and a $85.00 cash cell phone allowance per pay. It is March 2021 and she has not hit any maximums. Her claim code is 1. Please calculate her gross earnings, El contribution, CPP contribution, income tax contribution and her net pay. Please note you must show all formulas/work or you will receive zero. Gross Earnings: (1) El Contribution: (1) CPP Contribution: (1) Income Tax Contribution - Federal. Income Tax Contribution Provincial Net Pay:(1)
Mikhail Rivers is a self-employed corporate tax consultant. Mikhail’s business, Rivers’s Tax Consultancy, prepares financial statements to an accounting date of 31 March each year. During the year ended 31 March 2021, Mikhail’s tax adjusted trading profit was £34,120. What is the total amount of National Insurance contributions payable by Mikhail for the contribution period 2020/21? A. £158.60 B. £3,070.80 C. £2,374.40 D. £0. Mikhail will not be required to make any National Insurance contributions
Jan sold her house on December 31 and took a $100,000 mortgage as part of the payment. The 20-year mortgage has a 2% nominal interest rate, but it calls for semiannual payments beginning next June 30. Next year Jan must report on Schedule B of her IRS Form 1040 the amount of interest that was included in the two payments she received during the year. How much interest must Jan report on Schedule B for the first year? O $2,000.00 $1979.54 $979.54 $1000.00

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS