Assume that the prescribed rate for each quarter last year was 4%. Gerry received a loan from his employer of $60,000 at2%, which he put towards a rental property he purchased for $120,000. He paid the balance in cash. What was his taxablebenefit last year as a result of the loan that he obtained from his employer?a) $0b) $600c) $1,200d) $2,400Alan Peterson made a $2,000 RRSP contribution this year, and his marginal tax rate is 29%. Next year, Alan expects to geta significant raise, such that his marginal tax rate will increase to 43%. The Income Tax Act allows him to deduct his RRSPcontribution this year, or to carry the deduction forward to future years. When should he claim the deduction to optimizethe tax benefits?a) He should claim the deduction this year.b) He should claim the deduction next year.c) It does not matter when he claims the deduction because it will result in the same tax reduction in either year.d) He should split the deduction between his tax returns for this year and next year.Avi is a highly-skilled and well-paid tool and die maker for a private corporation. Since he is already in the top marginal taxbracket, he wants to explore the option of receiving some non-taxable benefits with his employer. Which of the followingbenefits would not be taxable to Avi?a) The amount Avi is reimbursed by his employer for tuition expenses for a long-distance MBA program.b) The value of the personal financial planning services that the company provides free of charge to allemployees.c) The premiums that Avi's employer pays on his behalf to a group life insurance plan.d) The reasonable automobile allowance per kilometre that Avi's employer pays Avi for use of his personalvehicle for business purposes.Valerie owns a home-based technical writing business as a sole proprietor. She paid $20,000 to her editorial assistant,$5,000 to her son as her computer technician and $30,000 to herself as salary. How much can she deduct as a businessexpense on her income tax return?a) $0b) $20,000c) $25,000d) $55,000

Here asked for Multi question we will solve for 1st question as per the guidelines. If you need…

Assume that the prescribed rate for each quarter last year was 4%. Gerry received a loan from his employer of $60,000 at 2%, which he put towards a rental property he purchased for $120,000. He paid the balance in cash. What was his taxable benefit last year as a result of the loan that he obtained from his employer? a) SO b) $600 c) $1,200 d) $2,400

Assume that the prescribed rate for each quarter last year was 4%. Gerry received a loan from his employer of $60,000 at 2%, which he put towards a rental property he purchased for $120,000. He paid the balance in cash. What was his taxable benefit last year as a result of the loan that he obtained from his employer? a) SO b) $600 c) $1,200 d) $2,400

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Some time ago, Marie took out a loan from the bank to purchase an apartment. The terms of theloan specified monthly payments over 25 years. The interest rate of 5.385% compounded semi-annuallyhasn’t changed. Marie has just made his 100th payment, and to his surprise, the interest portion of thepayment was exactly $1,000.a. What is Marie’s monthly payment? b. How much did Boris originally borrow
Victoria buys a property for $2,500,000 by paying $500,000 down payment and the rest on a 15-year credit with a 12% annual capitalizable interest rate each month. How much of the 55th payment is used to cover interest?
A family took out a 6-year, 12 percent loan from a lending institution for P 4,000. After six years, it renews the loan for another three years at a rate of 12 percent, plus the amount owed plus an additional P4,000. How much of the lump amount is due?
Andrew just bought a new boat for $15,000 to use on the river near his home. He has taken delivery of the boat and agreed to the terms of the following loan: all principal and interest is due in 3 years (balloon loan), first-year annual interest (on the purchase price) is set at 5%, this is to be adjusted up 1.5% per year for each of the following years of the loan. (a) How much does Andrew owe to pay off the loan in 3 years? (b) If inflation is 4%, what is the payment in Year-0 dollars? Given the following data, calculate the present worth of the investment.
Franklin owes the following amounts to the same person: $16,000 due today, $11,500 due in 1¼ years, $17,000 due in 2¾ years, and $15,000 due in 4¼ years. He wants to make a single payment of $56,500 instead. Using an interest rate of 8% compounded quarterly, when should this payment be made?
Tomas purchased a new heating and air-conditioning system for his home and financed $6,700 at an annual interest rate of 4.2% compounded monthly for 3 years. What are Tomas's monthly payments (in dollars)? Round your answer to the nearest cent.
Mr. Bill purchased a new house for 110,000. He paid 20,000 down and agreed to pay the rest over the next 30 years in 30 equal end of the year payments plus 12 percent compound interest on the unpaid balance. What will these equal payments be?