Mr. Joplin sells a line of computer software for a company in Western Canada. In 2023, he was paid a base salary of $56,000 and received sales commissions of $88,200. He did not receivean allowance, nor was he reimbursed by his employer for any of his expenses. During the year, Mr. Joplin has the following employment-related expenses.View the expenses. View the additional information.RequiredDetermine Mr. Joplin's employment income for 2023. Ignore all GST/HST and PST implications.kFirst, calculate the deductible CCA on the automobile used by Mr. Joplin. Enter the employment-related usage proportion as a percentage.Full capital cost allowanceEmployment-related usage proportionDeductible CCA on automobileExpensesAirline ticketsOffice supplies and shipping expensesPurchase of laptop computerClient entertainmentCost of new automobile (not zero-emission)Operating expenses of automobile$ 2,3804202,0951,77047,00010,700CXAdditional InformationAssume that $390 of the client entertainment represented the cost of Mr. Joplin'smeals with the remaining amounts attributable to clients. Further assume that all ofthe client entertainment was incurred while more than 12 consecutive hours awayfrom the municipality where the employer's place of business is located.The new automobile was purchased on January 5, 2023, and replaced anautomobile that Mr. Joplin had leased for several years. In 2023, Mr. Joplin drove atotal of 48,000 kilometres of which 38,400 kilometres were for employmentpurposes and 9,600 kilometres were for personal use. The maximum capital costallowance (CCA) that could be claimed for the automobile if it was used 100% ofthe time for employment purposes is $15,300.In addition to expenditures to earn employment income, Mr. Joplin has thefollowing disbursements:$475645Alberta Blue Cross Medical Insurance PremiumsGroup Life Insurance PremiumsMr. Joplin indicated that he regularly receives discounts on his emplover'sXnsw

A tax deduction known as the capital cost allowance lets qualified taxpayers write off the whole…

Answered: Mr. Joplin sells a line of computer…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2023. During that time, he earned $86,000 of self-employment income. On April 1, 2023, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Incorporated From April through the end of the year, Kyle earned $206,000 in salary. What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Answer is complete but not entirely correct. S 15,711 Self-employment/FICA tax
Christie sued her former employer for a back injury she suffered on the job in 2021. As a result of the injury, she was partially disabled. In 2022, she received $240,000 for her loss of future income, $160,000 in punitive damages because of the employer's flagrant disregard for the employee's safety, and $15,000 for the reimbursement of medical expenses. What's Christie's gross income in 2021? Please explain.
Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2023. During that time, he earned $72,000 of self-employment income. On April 1, 2023, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Incorporated From April through the end of the year, Kyle earned $220,000 in salary. What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year?
Rodney, a resident taxpayer is employed by subiaco function center as a marketing manager. during the 2023 income year, Rodney used his private car for wpork related travel to meetings. he maintained fuel receipts amounting to $4000 and noted that he had travelled a total of 6000n work related kilometers during the year. rodney has not maintained a logbook. From the above information, calculate the maximum deduction available to Rodney for car expenses in respect of the 2023 income year. a)$3900 b) $4000 c) $4680 d) $0
Suresh a salaried employee, furnishes the following information in respect of the previous year 2021-22-Salary income (before standard deduction): Rs.4, 50,000; debentures interest: Rs.1,75,000; payment of life insurance premium on life of grandmother: Rs. 10,500; contribution to Prime Minister’s Draught Relief Fund: Rs.20,000. Determine the net income of Ramesh for the assessment year 2022-23, assuming income from long term capital gain is Rs. 100,000 and he deposited Rs. 50,000 in public provident fund. Calculate his tax liability for the assessment year 2022-23
During the year, Mr. A incurred $526 to purchase airline tickets for travel to client sites on behalf of ABC co. He claimed this amount to abc by presenting his receipt and received a reimbusement for the full amount. Indicate the effect on Mr. A's net employment income. An inclusion in employment income should be entered in the box as a number (e.g., 100, do not use any other signs). A deduction from employment income should be entered in the box as a negative number (e.g, -100, do not use any other signs/brackets). If the item would have no effect on the calculation of employment income, enter the number 0 in the box (e.g., do not use any other signs/words)
Alicia loses her job part way through 2019. Her employer pays her wages of $15,450 up through her date of termination. After that, she received $3,400 of unemployment compensation from the state until she gets a new job for which she is paid wages of $3,000 through year end. Based on this information, Alicia’s gross income for 2019 is:
Michelle was paid a retiring allowance of $72,000.00 when her employment was terminated in February 2021. Michelle started with the organization in June 1978 and joined the company pension plan in June 1980. She was fully vested when her employment was terminated. Calculate the portion of Michelle's retiring allowance that will be reported as non- eligible on her T4 information slip.
On February 2, 2019, Alexandra purchases a personal computer. The computer cost $1,800. Alexandra uses the computer 85% of the time in her accounting business, and the remaining 15% of the time for various personal uses. Calculate Alexandra's maximum depreciation deduction for 2019 for the computer, assuming half-year convention and she does not use bonus depreciation or make the election to expenses.
Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2023. During that time, he earned $90,000 of self-employment income. On April 1, 2023, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Incorporated From April through the end of the year, Kyle earned $198,000 in salary. What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Self-employment/FICA tax
Beam Hines is a translator who works for a consulting firm in Mississauga. Her 2020 salary is $73,500, from which her employer, a Canadian controlled private company, deducts maximum CPP and EI contributions. Also deducted is an RPP contribution of $2,600. The employer makes a matching contribution ($2,600). Her employment compensation does not include any commission income. Other Information:1. To reward Beam for her outstanding work, and as an incentive to stay with the company, her employer has awarded her a bonus of $10,000 that will be paid in August 2021. 2. Beam received options to purchase 200 shares of her employer’s stock at a price of $72 per share last year. At the time the options were granted, the fair market value of the shares was $74 per share. During May 2020, when the shares had a fair market value of $90 per share, Beam exercises all of these options. She is still holding these shares at the end of the year. (Note: please mention the result of stock options benefit…
Gen is a new sole proprietor. By the end of January 2022, she needs to issue what document to any independent contractors to whom she paid $600 or more to do project work for her business? Form 1099-K, Payment Card and Third-Party Network Transactions. Form 1099-MISC, Miscellaneous Income. Form 1099-NEC, Nonemployee Compensation. Form W-2, Wage and Tax Statement.

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