Please answer with explanation.I will really upvote. Janine Stubos estimates that she will owe $20thousand in tax in 2021. She owed $14 thousandin tax in 2020 and $18 thousand in tax in 2019.Assuming she makes all her installment paymentsusing the no-calc method and that her estimatedtax owing for 2021 is correct, how much will sheneed to pay on April 30th, 2022?a. $6 thousandO b. $4 thousandO c. $2 thousandO d. $Nil

Answered: Janine Stubos estimates that she will…

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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Related questions

Question

Please answer with explanation.

I will really upvote.

Janine Stubos estimates that she will owe $20
thousand in tax in 2021. She owed $14 thousand
in tax in 2020 and $18 thousand in tax in 2019.
Assuming she makes all her installment payments
using the no-calc method and that her estimated
tax owing for 2021 is correct, how much will she
need to pay on April 30th, 2022?
a. $6 thousand
O b. $4 thousand
O c. $2 thousand
O d. $Nil

Expert Solution

Step 1

INTRODUCTION

No - Calc :

The final two quarterly installments are based on the tax paid in the year prior, whereas the first two quarterly installments are based on the tax paid in the year prior.

Installment payment :

A portion of the total amount of tax due for the year is paid in installments. According to the Income Tax Act, companies must pay installments in order to have the same taxable income as individuals who seemed to have their taxes deducted at the sources.