Part III InvestmentsMr. Anholt had the following investments in 2017.a) Actual Cash Dividends (Eligible)$2,100b) Dividends from Foreign Corp (Net of 15% Withholding)$3,500c) Bank Savings Account Interest$300d) Cash Proceeds from Annuity (Capital Portion = $1,000)(not a Deferred Tax Plan)$2,300e) Interest Earned in TFSA$600f) A 5-year, 3% $100,000 GIC was purchased on September 1, 2016.No interest is paid until maturity August 31, 2021.8) Safety Deposit Box Rental$200REQUIRED:1. Determine the tax consequences of the above items2. Show and submit all calculations3. Record, where applicable, the above amounts on the T1 or appropriate schedule(s)(you do not need to complete a Schedule 4)

Tax consequences are the financial effects of certain transactions and activities on the tax…

1. Determine the tax consequences of the above items 2. Show and submit all calculations 3. Record, where applicable, the above amounts on the T1 or appropriate schedule(s) (you do not need to complete a Schedule 4)

1. Determine the tax consequences of the above items 2. Show and submit all calculations 3. Record, where applicable, the above amounts on the T1 or appropriate schedule(s) (you do not need to complete a Schedule 4)

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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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

Part III Investments
Mr. Anholt had the following investments in 2017.
a) Actual Cash Dividends (Eligible)
$2,100
b) Dividends from Foreign Corp (Net of 15% Withholding)
$3,500
c) Bank Savings Account Interest
$300
d) Cash Proceeds from Annuity (Capital Portion = $1,000)
(not a Deferred Tax Plan)
$2,300
e) Interest Earned in TFSA
$600
f) A 5-year, 3% $100,000 GIC was purchased on September 1, 2016.
No interest is paid until maturity August 31, 2021.
8) Safety Deposit Box Rental
$200
REQUIRED:
1. Determine the tax consequences of the above items
2. Show and submit all calculations
3. Record, where applicable, the above amounts on the T1 or appropriate schedule(s)
(you do not need to complete a Schedule 4)

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