ADMS 3520 Lecture Notes - Tax Advisor, Disability Insurance, Basket Weaving

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salmonsquirrel911

14 Oct 2012

School

York University

Department

Administrative Studies

Course

ADMS 3520

Professor

all

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Document Summary

Selected parts of chapters 1, 2 and 20. Web links are included to provide more information to those who are interested to learn more about particular topics. Recommended exercises and self-study problems in chapter 2: exercises 1-3, 7-8, 10-11, 13-16, 18. Self-study problem 2-7: as you are not responsible for the standby charge and the operating cost benefit, you can assume that the total of the automobile benefits (standby charge plus operating cost benefit) is ,671. 2. 1 ita 2 is the charging provision [1-73 to 1-76] It defines who the taxpayer is and what the base is = who is liable for tax on what taxable income. The base is worldwide taxable income in division c of the act. Resident unless an individual severs all significant residential ties with canada upon leaving canada. 2. 3. 1 division b of part i of the act- computation of net income for tax purposes.

Related Questions

Jack and June are retired and receive? $10,000 of social security benefits and taxable pensions totaling? $25,000. They have been offered? $20,000 for an automobile that they restored after they retired. They did most of the restoration work themselves and the sale will result in a gain of? $12,000. What tax issues should Jack and June? consider? Choose all that apply.

The gain from the sale of the automobile will be? tax-exempt because it is considered hobby income.

If they accept the offer for the automobile their social security benefits will not be taxable because social security benefits are always excluded from taxable income.

Jack and June do not have any taxable income since they are retired.

The gain from the sale of the automobile will be taxable. Because Jack and June are? retired, they will not be eligible to treat this gain as a capital gain.

If they accept the offer for the automobile then a portion of their social security benefits will be taxable because their provisional income would be greater than the base amount of? $32,000 (married filing? jointly).

The gain from the sale of the automobile will be taxable.? Ordinarily, gains on the sale of investment and personal use assets are capital gains. The fact that the gain is attributable to the work they did themselves could cause the gain to be treated as ordinary income subject to? self-employment tax.? However, if this is the only automobile they have restored they probably are not considered to be in the automobile restoration business.

EXERCISE 11-2 Residual Income (L011-2] Juniper Design Ltd. of Manchester, England, is a company specializing in providing design ser vices to residential developers. Last year the company had net operating income of $600,000 on sales of $3,000,000. The company's average operating assets for the year were $2,800,000 and its minimum required rate of return was 18%. Required: Compute the company's residual income for the year.

You are the benefits manager at a medium-sized corporation and the president of the company has requested your advice. She overheard an employee saying that the employer spends too much money on benefits that arenât really needed and that giving employees the money spent on benefits directly as cash wages would be better so they could buy what they want. The president thinks that this idea may have some merit. Discuss the following issues with her:

1)economic consequences to the employees

2)economic consequences to the employer

3)reasons to continue providing benefits to employees

4)your concerns with the current benefit plan, after hearing the employeeâs comment

5)your recommendation(s) as to how to proceed from here

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ADMS 3520 Lecture Notes - Tax Advisor, Disability Insurance, Basket Weaving

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