Assignment 1 _Updated Dec 2022

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School

Algonquin College *

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Course

2262

Subject

Finance

Date

May 16, 2024

Type

pdf

Pages

Uploaded by CorporalWallaby881

Assignment 1 Pre-reading and important resources for this assignment: 1. Complete the learning activity of Module 3 2. Watch software tutorial video series provided in Module 3 3. Watch assignment 1 preparation video in Module 5 4. Review the practice T1 return in Module 7 Required: 1. Prepare a T1 Return for Ms. Smith using the ProFIle Software. 2. Submit the ProFIle file (either 19T/20T/21/T/22T/23T) extension. DO not submit the PDF file. It has to be ProFile File. You can assume the information presented in this case as per the year you have chosen. Claim the maximum CCA (business and property) in order to reduce the tax liability. No CCA should be claimed against the personal residence. Ignore GST/HST on sales and expenses. Ms. Smith’s personal information: First Name: Paula Last Name: Smith Address: 123 full moon road, Ottawa, Ontario, K2V 6N1 Email: psmith@gmail.com SIN: 511 111 111 Date of Birth: March 1, 1980 Marital Status: Married Spouse Information First and Last name: John Smith SIN: 511 111 112 Ms. Smith has been working for her employer for over a decade. The table below summarizes the information from her T4 slip. Employment Income

Assignment 1 Box 14 $150,000 Box 16 $2,593.88 Box 18 $858.22 Box 22 $41,500 Box 24 $51,799 Box 26 $55,900 Address : Same as Ms Smith Business Income In addition to working a standard 9 a.m.-5 p.m. job, Ms. Smith had an innovative idea and a couple of years ago she started her own business. The details you will need to complete her T1 Return are below: • The unincorporated business earns $6,000 per month. • Ms. Smith operates an unincorporated business out of her personal residence and the entire basement (which is 1/3 of the total house) is dedicated to the business. The house has three levels, including the basement. No other part of the house is used to earn income. Ms. Smith regularly meets clients there to discuss future sales. • To furnish the home office, Ms. Smith spent $5,000 on office furniture (Class 8 for CCA) on January 1. Ms. Smith was getting tired of the dated bathroom on the top floor of the house and decided to renovate it for a cost of $25,000. • The monthly heating and utility bills for the whole house are $120 and $150, respectively. • Ms. Smith pays her mortgage twice a month (24 times a year) and the payments are $750. The outstanding mortgage balance on January 1 was $233,000 and on December 31, it was $219,500. • The property tax bills were paid on time, directly to the city and the cost was $4,000 (the property tax amounts were not rolled into the mortgage). • On January 1, she purchased a brand-new computer (Class 50) for $1,500 and bought new software (Class12- not the system software) at the same time for $1,000. • Ms. Smith pays $45 per month for online local advertising. • In order to drum up business, Ms. Smith purchased seasons tickets for both the Senators: • The cost for the Senators tickets (2) for $1,500 each. Ms. Smith will take a client to every hockey game; she has not missed a game in over five years. • Ms. Smith also buys Redblack tickets for her family every year for a total amount of $3,000. • Due to environmental reasons, Ms. Smith does not own a car, so she rides her bike whenever she needs to meet a client or a supplier.

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