Solution-Compute the minimum amount of net income

Compute the minimum amount of net income

Assignment Help Accounting Basics

Reference no: EM132619584

Questions -

Q1. Mr Josh owns two rental properties. The gross rent on property one is $40,000. Current rent expenses is $60,000. For property 2, the gross rent is $65,000 and current expenses total $50,000 but this includes $30,000 to paint the entire exterior of the house.

For property one, UCC (class 3 is $100,000). For the other property, UCC (class 1 is $200,000).

Compute the minimum amount of net income for the two properties as per Canadian income tax law.

Q2. Joe Chow owns 85% of H Ltd and his sister Jenny owns the other 15%. H Ltd has a December 31, 2019 year end. Jenny borrowed $50,000 from H Ltd on July 15, 2019 to buy a car that is a convertible to use for pleasure Assume that Jenny does not have shareholder credit balance in H Ltd. Further assume that the prescribed rate of interest for 2019, 2020 and 2021 for all four quarters is 2%. Jenny did not pay any interest back to H Ltd for any of the years but did repay $20,000 of loan principal in 2021. Show the amounts and describe the tax consequences of this shareholder loan to Jenny for each of 2019, 2020 and 2021.

Reference no: EM132619584

Questions Cloud

Discuss what ageing biases you have witnessed : Reflect on how those experiences from the Discussion Post impact your nursing practice now? Discuss what ageing biases you have witnessed &/or perpetrated.

Relationship between capital budgeting and capital structure : Explain the relationship between capital budgeting, capital structure, and working capital decision.

Evaluate how Gray accounting values are useful : Evaluate how Gray's accounting values are useful in understanding accounting practices of countries you are familiar with

Produce a financial projection for your business : Given the information above, produce a financial projection for your business for the next 5 years from today. Calculate the expenses, sales and profits

Compute the minimum amount of net income : For property one, UCC (class 3 is $100,000). Compute the minimum amount of net income for the two properties as per Canadian income tax law

Discuss any take-away thoughts from the articles : How do you plan to make a positive impact on the care of LGBT patients when you become a NP? What attitudes/behaviors/communication/understanding is important.

Analysis of the opportunities and threats : Provide a supported analysis of the Opportunities and Threats facing United Airlines currently

How could the problem-solving process be improved : Provide an example of a problem that has been solved in this way. Do you think the problem-solving process used by the organization is sound?

List five different types of risk treatment options : List five different types of risk treatment options available to the business and explain how they may use these options

User Account

All Pages

Compute the minimum amount of net income

Reference no: EM132619584

Reference no: EM132619584

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT