ACC 400 Taxation Reviewer
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School
Seneca College *
*We aren’t endorsed by this school
Course
400
Subject
Accounting
Date
Jun 21, 2024
Type
docx
Pages
13
Uploaded by CoachFreedomWolverine30
ACC 400 Taxation Reviewer
1.
A Plumber who has Revenue of less than 10,000 annually does not need to register for HST -
True
Feedback: I f a commercial business “estimated” revenue for this year is less
than $30,000 then the Commercial Business may have an option to NOT registered for a HST Business Number. Will not need to collect hst/gst but CANNOT claim an HST/GST input tax credit (ITC).
2.
A Pharmacy, in addition to selling drugs, also sell 4 Litres Bags of Milk. The Milk Bags should be sold as what type of HST Product?
-
Zero Rated Product
Feedback: Commercial: Taxable and Zero Rated Products; Non-Commercial: Exempt Products
3.
If a Commercial Vendor in Alberta purchasing a Computer for $1050 including GST, assuming that the computer is used for 60% for Commercial Activity and 40% for non-commercial activity, the vendor’s maximum GST ITC would be?
-
$50
Feedback: 1050*5/105 = 50; greater than 50% Commercial Activity, then you
get 100% ITC.
4.
A British Columbia, commercial activity business purchased a Meal for a client for $1,120 including GST and PST. The maximum ITC would be? (Assume that there are no tips included)
-
25
Feedback: 1120*5/112*50% = 25
5.
An Ontario Resident Store provides you the following HST/GST/PST included. Financial information for this month:
Delivery to Vancouver, British Columbia, Public Golf, bags
$5,600
The owner transferred inventory (self use) NO HST Icl
$3,000
Delivery to Toronto Golf Club – golf shoes, net of 10% vol discount
$100
Sporting life – sunglasses (for resale)
$4,000
Please choose the best and most accurate answer. (Please round the
answer to the nearest dollar)
-
Line 405 is $390 and HST collected on the Sale to the Toronto Golf Club is $12
Feedback: Line 405 = (3000*13%=$390), HST Collected, $100*13/113 = 12
6.
An Ontario Resident Store provides you the following HST/GST/PST included. Financial information for this month:
Delivery to Vancouver, British Columbia, Public Golf, bags
$5,600
Delivery to Golf Town (Illinois, USA), golf clothes
$3,000
Delivery to Toronto Golf Club – golf shoes, net of 10% vol discount
$1,800
Sporting life – sunglasses (for resale)
$4,000
The British Columbia GST Tax collected to the nearest dollar amount from the sale to Vancouver is?
-
250
Feedback: 5600*5/112 = 250
7.
An Ontario Resident Store provides you the following HST/GST/PST included. Financial information for this month:
Delivery to Winnipeg, Manitoba, Public Golf, bags
$5,600
Delivery to Golf Town (Illinois, USA), golf clothes
$3,000
Delivery to Toronto Golf Club – golf shoes, net of 10% vol discount
$1,800
Sporting life – sunglasses (for resale)
$4,000
The Manitoba PST Tax collected to the nearest dollar amount from the sale to Vancouver is?
-
350
Feedback: 5600*7/112 = 350
8.
An Ontario Resident Store provides you the following HST/GST/PST included. Financial information for this month:
Delivery to Winnipeg, Manitoba, Public Golf, bags
$50,000
Delivery to Golf Town (Illinois, USA), golf clothes
$3,000
Delivery to Toronto Golf Club – golf shoes, net of 10% vol discount
$1,800
Sporting life – sunglasses (for resale)
$4,000
The Manitoba PST Tax collected to the nearest dollar amount from the sale to Vancouver is?
-
3125
Feedback: 50000*7/112 = 3125
9.
An Ontario Sport Store selling Taxable Products provides you that the following HST included Financial information for this month:
Retail Store in Toronto, Shirts, and shorts
$12,000
Sales to Bloomingdale’s in NY, USA, shirts
$2,000
Bad debt – Ontario retail customer sales last month. Shirts
50% of $1,000 of Revenue including HST sold last month
Owner transferred Home Computer to this $1,130 (Fair Market)
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Company. The company uses computer for 100%
$2,260 (Original Cost)
Commercial Activity
*** (Amounts includes HST)
The Net HST Payment/Remittance, rounded to the nearest dollar for this month will be?
-
1192
Feedback: Line 103, Retail Sales in Ontario: 12000*13/113=1380
Line 103, Export: 2000*0=0
Line 107, Bad Debt: 1000*13/113*50% (Bad Debt) = (58)
Line 106, Computer Transfer: 1130*13/113 = (130)
Line 109 Total Net HST Payment/Owing: 1,192 (add all figures above)
Note: FYI, The cost of the computer, only, would be 1,130*100/113 = 1,000
10.
An Ontario Sport Store selling Taxable Products provides you that the following HST included Financial information for this month:
Retail Store in Toronto, Shirts, and shorts
$12,000
Purchase of Real Property, before sales tax, ON
$200,000
Bad debt – Ontario retail customer sales last month. Shirts
50% of $1,000 of Revenue including HST sold last month
Owner transferred Home Computer to this $1,130 (Fair Market)
Company. The company uses computer for 100%
$2,260 (Original Cost)
Commercial Activity
*** (Amounts includes HST)
The Net HST Payment/Remittance, rounded to the nearest dollar for this month will be?
-
1192
Feedback: Line 103, Retail Sales in Ontario: 12000*13/113=1380
Line 103, 200000*13% = 26,000
Line 107, Bad Debt: 1000*13/113*50% (Bad Debt) = (58)
Line 106, Computer Transfer: 1130*13/113 = (130)
Line 109 Total Net HST Payment/Owing: 27,192 (add all figures above)
Note: FYI, The cost of the computer, only, would be 1,130*100/113 = 1,000
11.
If Shoppers Drug Mart, in the Province of Alberta, accepts
a $20 reimbursable coupon from a customer and a coupon is deducted from the customer purchase of $100 before HST/GST,
the HST/GST collected on this purchase is?
-
5
Feedback: “before coupon” 100*5% = 5
12.
If Shoppers Drug Mart, in the Province of Prince Edward Island, accepts a $20 reimbursable coupon from a customer and a coupon is deducted from the customer purchase of $100 before HST/GST, the HST/GST collected on this purchase is?
-
15
Feedback: “before coupon” 100*15% = 15
13.
If Canadian Tire, in the Province of New Brunswick, accepts a $20 non-reimbursable coupon from a customer and the coupon is deducted from the customer purchase of $100 before HST/GST, the HST/GST collected on this purchase is?
-
12
Feedback: “after coupon” (100-20)*15% = 12
14.
An Ontario Canadian Tire completes the following sale: A customer purchases product for $100 before HST
. The customer presents a non-reimbursable coupon
for $10. The coupon is deducted from the purchase price. What is the Canadian Tire Journal Entry for this transaction?
-
DR Cash $101.70
CR HST Payable $11.70
-
DR Sales Discounts $10
CR Revenue
$100
Feedback: HST Payable: (100-10)*13% = 11.70
Non-reimbursable Coupon, Subtract Coupon and calculate HST “after” coupon is subtracted. Cash: 100+11.70-coupon 10 = 101.70
15.
Canadian Tire completes the following sale: A customer purchases product for $200 before HST
. The customer presents
a non-reimbursable coupon
for $30. The coupon is deducted from the purchase price. What is the Canadian Tire Journal Entry for this transaction?
-
DR Cash $192.10
CR HST Payable $22.10
-
DR Sales Discounts $30
CR Revenue
$200
Feedback: HST Payable: (200-30)*13% = 22.10
Non-reimbursable Coupon, Subtract Coupon and calculate HST “after” coupon is subtracted. Cash: 200+22.10-coupon 30 = 192.10
16.
An Ontario Music Store selling Education Lessons and Taxable Products provides you that the following HST Included
Financial information for this month:
Chairs and Piano Revenue $10,000
Music Lesson Revenue
$20,000
Bad debt-on Music Lessons
50% of $1,000 of Revenue including HST sold last month and recognized as bad debt for HST purposes
Taxable Office Expenses Purchased
$565
For selling Music Lessons
The amount of HST paid
on the Taxable Office Expenses Purchased for Music Lesson is
-
65
Feedback: 565*13/113 = 65 “Still need to pay hst even though this company has HST Exempt Status”
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17.
An Ontario Music Store selling Education Lessons and Taxable Products provides you that the following HST Included
Financial information for this month:
Chairs and Piano Revenue $10,000
Music Lesson Revenue
$20,000
Bad debt-on Music Lessons
50% of $10,000 of Revenue including HST sold last month and recognized as bad debt for HST purposes
Taxable Office Expenses Purchased
$565
For selling Music Lessons
The amount that would appear on Line 107 for the information given
above?
-
575
Feedback: Line 107, Bad Debt: 10000*13/113*50% (Bad Debt) = (575)
18.
A Quebec Music Store selling Education Lessons and Taxable Products provides you that the following HST Included
Financial information for this month:
Chairs and Piano Revenue $10,000
Music Lesson Revenue
$20,000
Bad debt-on Music Lessons
50% of $1,000 of Revenue including HST sold last month and recognized as bad debt for HST purposes
Taxable Office Expenses Purchased
$565
For selling Music Lessons
The amount of HST/GST/ITC paid
on the Taxable Office Expenses Purchased for Music Lesson is
-
24.57
Feedback: 565*5/114.975 = 73.59 “Still need to pay hst even though this company has HST Exempt Status”
73.59 = PST (49)+ GST(25)
19.
An Ontario Commercial Taxable, Taxable Rated HST status
business for this HST period, and had Taxable Revenues of $10,000 before HST and paid hst of $130 on $1,000 on commercial rated expenses. $2,000 was removed for Personal Use Only. This business will report the following on this period’s HST Return? Please choose the best and most correct answer. -
Line 101 is $10,000
-
Line 109 is $1,170
-
Line 106 is $130
-
Line 103 is $1,300
-
Line 405 is $260
Feedback: Line 101: $10,000
Line 103: $1,300
Line 106: (130)
Line 109: $1,170, Net HST Payable (1,300 – 130)
Line 405: $260 (2,000*.13)
Line 113 C: $1,430
20.
An Ontario Zero Rated HST status business for this HST period, had only Zero Rated Revenues of $10,000. This business will report the following on this period’s HST Return? Please choose the best and most correct answer. -
Line 101 will be $10,000
Line 103 will be $0
Feedback: Zero Rated Products are commercial, cannot collect HST/GST, but are Allowed HST/GST/ITC.
21.
An Ontario Exempt, non-commercial HST/GST business status for this HST period, had Revenue of $1,000 before HST/GST/PST. This business will report the following on this period’s HST Return? Please choose the best and most correct answer.
-
Line 101 will be $1,000
Line 103 will be $0
Feedback: cannot collect HST/GSTq
22.
In the province of Saskatchewan, a customer purchases a laptop for $1,000 plus Saskatchewan Sales Tax. The customer is given a 10% “Financial Discount” for early payment.
-
The final cost to the customer is $1,010 and
-
The provincial sales tax will be $54.
The above statements, both, are true or false?
-
False
Feedback: Final Cost to the customer: $1,000 plus $110 sales tax (1,000*11%) less $100 (discount) = $1,010.
The provincial tax will be $60. (1,000*6%) = $60 (The answer is NOT (1,000 –
100)*6% = 54!!
The GST will be $50. (1000*5%) = $50
Total Saskatchewan Sales Tax = $60 plus $50 = $110
Page 17.
23.
In the province of Manitoba, a customer purchases a laptop for $1,000 plus Manitoba Sales Tax. The customer is given a 10% “Financial Discount” for early payment.
-
The final cost to the customer is $1,010 and
-
The provincial sales tax will be $70.
The above statements, both, are true or false?
-
True
Feedback: Final Cost to the customer: $1,000 plus $110 sales tax (1,000*11%) less $100 (discount) = $1,010.
The provincial tax will be $70. (1,000*7%) = $70 The GST will be $50. (1000*5%) = $50
Total Manitoba Sales Tax = $70 plus $50 = $120
Page 17.
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24.
When a customer purchases a Tim Horto Gift Card for $100 the HST charged will be $0 in Ontario. AND When a Child Care Services, purchases a Building for 90% plus Non-
Commercial Exempt use, for the $100,000 before Sales Tax, the
ITC will be $13,000. The above statement is TRUE or FALSE?
-
False
Feedback: 1. No HST Tax of purchase of Gift Certificate/Cards. There is no Revenue delivered or provided!!! Only a liability is recorded.
2. Child Care Services is a Non-Commercial Exempt Services. Cannot collect HST/GST and cannot claim ITC. (But must pay HST/GST where applicable)
17. In the province of Manitoba, Tim Horton sells a gift card for $500, tax included. The holder of the gift card purchases $200, tax included, of products from Tim Hortons, applying the $500 gift card for the purchase. Assume that this is the only use of the $500 gift card. Right after the above $200 purchase, The Total of the Deferred
Revenue Balance PLUS the GST collected by Tim Hortons will be?
- 309
Feedback: Manitoba Sales Tax = 12%
Deferred (Unearned) Revenue Balance: $500-$200 = $300 plus tax collected,
Manitoba GST = $200*5/112 = 9. Total $300 plus $9 = $309.
18. For this year, a British Columbia Company ABC estimates that their Revenue will be $8,600,000. Company ABC must file their HST/GST Tax Return once a year or annually.
- False
Feedback: This company must file monthly. Estimated Revenue is over $6 million.
19. As reviewed in this course, with regards to the HST/GST Return in the province of Ontario, which of the following is the best and most accurate answer. (Check the Return)
- Line 107, is for the HST included in Bad Debt Expenses AND
Line 104, is for the HST included in Bad Debt Recoveries
20. If a Toronto, Ontario, salesperson, Judy, lost her commercial purpose, customer meal receipt and cannot remember the HST paid
on the meal, but has her visa statement as proof of purchase, the company CAN still reimburse her the meal expense plus HST and the
company can still claim for an adjusted HST ITC on the customer meal. - TRUE
Feedback: True, for reimbursement of HST on purchase of meals for Commercial Purposes, where the detailed receipt is lost, however, proof of meal purchase visa statement is available, a company can still claim the ITC but using the factor of 12/112 and not 13/113 in Ontario. The penalty of losing the receipt is approximately 1%. 21. In the Province of Manitoba, if your revenue is 60% Commercial (Piano Sales) and 40% Non-commercial (Music Lessons) then, if you pay a Lawyer legal fees
for $1,000 and pay 5% GST of $50, your ITC would only be 60% times $50 = 30.
- True
Feedback: $1,000*5% (GST only) times 60% (Commercial portion of the business)
22. In the Province of Nova Scotia, if your revenue is 60% Commercial (Piano Sales) and 40% Non-commercial (Music Lessons) then, if you pay a Lawyer legal fees
for $1,000 and pay the applicable Sales Tax, your ITC would only be $90.
- True
Feedback: $1,000*15% (HST) times 60% (Commercial portion of the business) = $90
23. In the province of Quebec, if your revenue is 60% Commercial (Piano Sales) and 40% Non-commercial (Music Lessons) the, if you purchase a computer or table for $1,000 and pay 5% GST of $50, your ITC would only be 100% times $50 = $50.
- 50
Feedback: The computer/table is greater than 50% commercial, then you receive 100% ITC! See page 26. Piano Sales are Commercial Taxable
Music Lesson Sales are NON-Commercial Exempt
24. Which of the following statement is true with regards to classification of Products and Services sold for HST/GST Purpose?
- The following are taxable supplies; a restaurant meal, sale of a sweater by a large department store, computers.
25. When a Child Care Services, purchases a Building for 90% plus Non-Commercial Exempt use, for the $200,000 before Sales Tax, the ITC would be?
- 0
26. In the province of Manitoba, When a computer Store, purchases a Building for 60% plus personal use, for the $100,000 before Sales Tax, the ITC will be $2,000
AND When a child care services purchases a Building for 20% plus Non-Commercial Exempt and 80% Commercial use, for the $100,000,
before Sales Tax, the ITC will be $4,000.
AND HST/GST Return Line 205 is to record HST/GST payment for Real
Property.
-
False
Feedback: ITC would be $3000 (100,000*5%*60%=$3,000) not $2,000
27. In the province of Ontario and for HST/GST purposes, if you sell exempt rated services, you CAN
collect HST and if you also sell zero rate revenue, you CAN claim ITC on purchases related to zero rated revenue.
- False
Feedback: It should be “In the province of Ontario and for HST/GST purposes,
if you sell exempt rated services, you CANNOT
collect HST AND if you also, sell zero rated revenue, you CAN
claim ITC on purchases related to zero rated
revenue.”
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Related Questions
Hello tutor please given answer financial accounting question not use ai
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Question 4
Your client sells a taxable item and ships it to a customer that is out
of state. There is no sales tax agency set up for that state.
What sales tax rate will QuickBooks Online apply?
OA special category rate will be used as the seller's rate
No sales tax will be applied
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Name:
Activity Worksheet #4 (Chapter 4)
TRUE/FALSE
Personal income taxes are paid only on your taxable income.
1.
The key to reducing one's tax liability is to reduce taxable income rather than gross
2.
income.
MULTIPLE CHOICE
3. Which of the following would be considered smart financial planning?
a. Turn all your income tax planning over to someone else
b. Withhold too much income in order to receive a refund next year.
c. Ignore the impact of income taxes in your personal financial planning
d. Contribute to your employer-sponsored 401(k) retirement plan at least up to the amount
of the employer's matching contribution
taxes are based on one's ability to pay
a. Progressive
b. Regressive
c. Marginal
d. All of these
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percent
liability (what he owes in taxes) is 4,694. Dave's average tax rate is approximately
С. 15
а. 11
b. 14
d. 25
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Question 4
Your client sells a taxable item and ships it to a customer that is out
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What sales tax rate will QuickBooks Online apply?
The seller's standard rate
O The customer's rate based on location
OA special category rate will be used as the seller's rate
O No sales tax will be applied
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TRUE OR FALSE
It is mandatory to register as a VAT Taxpayer once the sales exceed 3M.
During Cory Aquino's presidency, 10% VAT was introduced and only selected products was covered by the tax.
Internal Financing is subject to voluminous documentation and timing is unpredictable. More transaction costs and subject to pay-out and control restrictions.
The name of the account stated in the Purchase Journal is the same as the Chart of Account used in the recording of the transaction.
2550M BIR Form is used for Percentage Tax Remittances also.
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If the transportation contractor is not vat registered, what business taxes is he liable?
Group of answer choices
12% VAT' on gross receipts from transport of goods on cargoes and 3% common carrier's tax on gross receipts from transport of passengers.
12% value-added tax.
3% tax on VAT-exempt persons on gross receipts from transport of goods and cargoes and 3% common carrier's tax on gross receipts from transport of passengers.
3% common carrier's tax.
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37. SCHEDULE OF EXPANDED WITHHOLDING TAX (EWT)
Income Payment
EWT
Income Payment
EWT
Professional/Management/Consultancy fees (Individual)
Gross receipts 3M or below with sworn declaration - 5%
Gross receipts over 3M or VAT-reg or without sworn declaration – 10%
Purchase of goods or properties by Top Withholding Agents (TWA) -
1% - goods
2% - service
Professional/Management/Consultancy fees (Non-Individual)
Gross receipts 720,000 or below - 10%
Gross receipts over 720,000 – 15%
Partners in general professional partnerships (drawings, advances, sharings, allowances, etc.)
720,000 or less -10%
Above 720,000 – 15%
Contractors/subcontractors (security, janitorial, etc.)
2%
Commission (if not employee)
10%
Director’s fees (if not employee)
10% or 15% (720,000 threshold)
Income distributed to beneficiaries of estates/trusts
15%
Rental
5%
Below are the data provided to you by Nicanor, a top withholding agent for the month…
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Question 1: Value Added Tax
Ali, a consumer, buys electronics worth $20,000, while Consumer Jumabuys for $45,000 and Consumer Saif spends to the value of $100,000. VAT is charged at 5% on the price marked on the products.
What is the VAT payable to the government?
Explain the type of taxation system applicable in this situation.
Is this system of taxation fair?
Explain why this system is being criticised?
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I will provide you positive response
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Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
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Please answer fast without plagiarism please no plagiarism
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1) What should companies consider regarding sales tax for online transactions versus in-person transaction.
2) Based on the risk levels you calculated for the zip codes that Dillard’s sells to, what would your recommendation be to Dillard’s regarding purchasing tax software versus using freely available rate tables?
3) Recognizing that the Wayfair decision continues to impact state tax laws regarding online sales, what factors would you take into account for a company that is beginning to embrace online sales and is deciding whether to invest in tax software versus using freely available rate tables?
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Please help me with the incorrect answers
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What causes book-tax differences? (
000
Planning current business transactions to reduce tax costs
Recognizing different revenues and expenses under GAAP and tax rules
O Paying taxes today to avoid paying higher taxes in the future
O Using separate sets of books to track GAAP and tax revenues and expenses
A
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Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
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Please do not give solution in image format thanku
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T1.
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Need help with this financial accounting question not use ai
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a. Fill in the missing numbers in the following income statement:
Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g. 32.
Sales
Costs
Depreciation
EBIT
Taxes (25%)
Net income
$
b. OCF
c. Depreciation tax shield
643,700
384,300
136,500
b. What is the OCF?
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g. 32.
c. What is the depreciation tax shield?
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g. 32.
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not use ai please
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