130ABDGHKLMNP1 ACCT328, HW 2 Due no later than Mar 13, 2022 11:55 PM:After deducting an RPP contribution of $2,000, Mrs. Blue has net employment income of $34,000in the previous year. Her employer reports a Pension Adjustment of $4,500 on her previous year'sT4. Her current year's RRSP contributions total $5,000. At the end of the previous year her6 Unused RRSP Deduction Room was $2,500.9 Required: What is the maximum RRSP deduction that Mrs. Blue can take on her current year's tax return?101112 Solution:131415161718192021222324253031

RRSP means Registered Retirement Saving Plan. A…

Answered: CCT 328, HW 2 Due no later than Mar 13,…

Business

Accounting

CCT 328, HW 2 Due no later than Mar 13, 2022 11:55 PM:

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter3: Computing The Tax

Section: Chapter Questions

Problem 25P

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Payroll accounts and year-end entries The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: 211 Salaries Payable 212 Social Security Tax Payable 9,273 213 Medicare Tax Payable 2,318 214 Employees Federal Income Tax Payable 15,455 215 Employees State Income Tax Payable 13,909 216 State Unemployment Tax Payable 1,400 217 Federal Unemployment Tax Payable SOO 218 Retirement Savings Deductions Payable 3,400 219 Medical Insurance Payable 27r000 411 Operations Salaries Expense 950.000 S11 Officers Salaries Expense 600,000 SI 2 Office Salaries Expense 150.000 S19 Payroll Tax Expense 137,951 The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: Dec. 2. Issued Check No. 410 for 53,400 to Jay Bank to invest in a retirement savings account for employees. 2. Issued Check No. 411 to Jay Bank for 527,046, in payment of 59,273 of social security tax, 2,318 of Medicare tax, and 15,455 of employees federal income tax due. 13 Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Dec. 13. Issued Check No. 420 in payment of the net amount of the biweekly payroll to fund the payroll bank account. 13. Journalized the entry to record payroll taxes on employees' earnings of December 13: social security tax. 4,632; Medicare tax, 1,158; state unemployment tax. 350; federal unemployment tax, 125. 16. Issued Check No. 424 to Jay Bank for 27,020. in payment of 9,264 of social security tax, 2,316 of Medicare tax, and 15,440 of employees' federal income tax due. 19. Issued Check No. 429 to Sims-Walker Insurance Company for 31,500, in payment of the semiannual premium on the group medical insurance policy. 27. Journalized the entry to record the biweekly payroll. A summary of the payroll 27. Issued Check No. 541 in payment of the net amount of the biweekly payroll to fund the payroll bank account. 27. Journalized the entry to record payroll taxes on employees' earnings of December 27: social security tax, 4,668; Medicare tax. 1,167: state unemployment tax, 225; federal unemployment tax, 75. 27. Issued Check No. 543 for 20,884 to State Department of Revenue in payment of employees' state income tax due on December 31. 31. Issued Check No. 545 to Jay Bank for 3400 to invest in a retirement savings account for employees. 31. Paid 45,000 to the employee pension plan. The annual pension cost is 60,000. (Record both the payment and unfunded pension liability.) Instructions 1. Journalize the transactions. 2. Journalize the following adjusting entries on December 31: a. Salaries accrued: operations salaries, 8,560; officers salaries, 5,600: office salaries, 1,400. The payroll taxes are immaterial and are not accrued. b. Vacation pay, 15,000.
P20.5 (LO4) (Computation of Pension Expense, Journal Entries for 3 Years) Hiatt Toothpaste SA initiates a defined benefit pension plan for its 50 employees on January 1, 2019. The insurance company which administers the pension plan provided the following selected information for the years 2019, 2020, and 2021. For Year Ended December 31, 2019 2020 2021 Plan assets (fair value) €50,000 € 85,000 €180,000 Vested benefit obligation 45,000 165,000 292,000 Defined benefit obligation 60,000 200,000 324,000 Net (gain) loss –0– 78,900 5,800 Employer's funding contribution (made at end of year) 50,000 60,000 105,000 There were no balances as of January 1, 2019, when the plan was initiated. The actual return on plan assets was 10% over the 3-year period, but the discount (interest) rate was 13% in 2019, 11% in 2020, and 8% in 2021. The service cost component of net periodic pension expense amounted to the following: 2019, €60,000; 2020, €85,000; and 2021, €119,000. No…
B15. Mrs. Emily Robinson just celebrated her 72nd birthday on October 1, 2022. Her qualified plan had a balance of 984,589 on December 31, 2020. She takes her first distribution of 35,000 from the qualified plan on April 1, 2022. Determine how much she will owe in the minimum distribution tax penalty associated with her first year’s distribution.
Kk.23. MN’s compensation package for its PEO consisted of a $600,000 salary plus $200,000 unfunded deferred compensation. The PEO will receive the $200,000 when he retires in 2026. He is also a participant in MN’s qualified pension plan. MN contributed $21,000 to fund a $90,000 annual pension that the PEO will begin to receive in 2026. Required: Compute MN's current year financial statement expense for the PEO’s compensation. Compute MN's current year tax deduction for the PEO’s compensation. Compute the PEO’s current year taxable compensation income. How much taxable income will the PEO recognize in 2026?
Q.69. Ben Efit’s employer provides him with the following benefits during the 2022 taxation year: His employer contributed to the company’s registered pension plan on Ben’s behalf: $6,000. Group term life insurance coverage of $100,000; the premium for the coverage is $400. group sickness or accident insurance coverage; the premium paid is $550. A private health services plan with dental coverage; the premium is $800. Mental health counselling: $1,500. Public transit pass; the annual cost is $800. Determine the amount to be included in Ben’s net income for tax purposes for 2022. Show your work!
P20.6 (LO1, 4) (Pension Expense, Journal Entries, and Net Gain or Loss) Aykroyd Inc. has sponsored a non-contributory, defined benefit pension plan for its employees since 1989. Prior to 2019, cumulative net pension expense recognized equaled cumulative contributions to the plan. Other relevant information about the pension plan on January 1, 2019, is as follows. 1. The company has 200 employees. All these employees are expected to receive benefits under the plan. 2. The defined benefit obligation amounted to $5,000,000 and the fair value of pension plan assets was $3,000,000. On December 31, 2019, the defined benefit obligation and the vested benefit obligation were $4,850,000 and $4,025,000, respectively. The fair value of the pension plan assets amounted to $4,100,000 at the end of the year. A 10% discount rate was used in the actuarial present value computations in the pension plan. The present value of benefits attributed by the pension benefit formula to employee…
PR.05.15 Since the SUTA rates changes are made at the end of each year, the available 2019 rates were used for FUTA and SUTA. Note: For this textbook edition the rate 0.6% was used for the net FUTA tax rate for employers. Example 5-10 Karlson Software Company is located in State H, which enables employers to reduce their contribution rates under the experience-rating system. From 2006 to 2015, inclusive, the company's total contributions to state unemployment compensation amounted to $14,665. For the calendar years 2016 to 2019, inclusive, the contribution rate for Karlson was 2.7%. The contributions of each employer are credited to an account maintained by the State Unemployment Compensation Commission. This account is credited with contributions paid into the account by the employer and is charged with unemployment benefits that are paid from the account. Starting January 1, 2020, the contributions rate for all employers in State H will be based on the following tax rate schedule:…
Gpu.4 in 2022 mrs. white has taxable capital gains of 21,750 rental income of 5720 pays spousal support of 15000 employment income of 80200 after claiming an RRP deduction of 4000. her employer reports a 2022 PAof 8000. at the end of 2022 mrs. white has unused RRSP deduction room of 14200. in addition at the end of 2022 she has undeducted RRSP contributions of 7350. in 2023 she makes additional contribution to her RRSP of 11250. What is mrs. White's maximum RRSP deduction for 2023?
[8:50 PM, 2/23/2022] Veron Walker Uwi: Grace Corporation's pretax financial income is $600,000 and taxable income is $550,000 for year 2020.Its beginning deferred tax liability account has a balance of $75,000. Its cumulative temporarydifferences for year-end 2020 is equal to $300,000 and will reverse and result in taxable amounts as follows: Year Taxable Amount2021 $100,0002022 $ 75,0002023 $125,000The tax rate is 30% for all years.[8:50 PM, 2/23/2022] Veron Walker Uwi: Required:(i) Calculate the taxes payable for the year 2020(ii) Calculate the deferred tax liability for the year 2020(iii) Calculate the total tax expense for 2020(iv) Prepare the journal entry to record the tax expense for 2020(v) Prepare the income statement presentation of the tax amoun
MN.28. Samantha Stewart, an individual whose only income resulted from pensions, did not file her 2012 return until August 31, 2013. Her net tax owing on her balance due day was $5,600, which she paid on April 30, 2013. This is her second offence in 2 years. How much of a late filing penalty will she incur? A. $0. B. $504. C. $807. D. $1,108.
Ma1 Matthew (48 at year-end) develops cutting-edge technology for SV Inc., located in Silicon Valley. In 2020, Matthew participates in SV’s money purchase pension plan (a defined contribution plan) and in his company’s 401(k) plan. Under the money purchase pension plan, SV contributes 15 percent of an employee’s salary to a retirement account for the employee up to the amount limited by the tax code. Because it provides the money purchase pension plan, SV does not contribute to the employee’s 401(k) plan. Matthew would like to maximize his contribution to his 401(k) account after SV’s contribution to the money purchase plan. (Leave no answers blank. Enter zero if applicable.) d. Assume Matthew's annual salary is $72,500 and that he is 54 years old at the end of 2020. What amount can Matthew contribute to his 401(k) account in 2020?
Hw.145. Francisco paid the following taxes in 2022: !"$6,000 property taxes on their personal residence !"$500 property taxes on their personal automobile !"$3,000 property taxes on business property !"$10,000 federal income taxes !"$5,000 state income taxes !"$6,000 employment (FICA) taxes !"$2,000 sales/use tax What amount of taxes can Francisco deduct as an itemized deduction in 2022? What amount of taxes could Francisco deduct as an itemized deduction if the taxes were paid in 2026?