Question

Min-ju Yang is employed as a salesperson and earns both a salary and commission income. In 2020, Min-ju's commissions totaled $5,500. Min-ju is required to pay for numerous employment expenses each year which are identified on the annual T2200. Min-ju paid $6,200 for advertising and promotion during the year. Min-ju uses a personal vehicle for work purposes, and in 2020, the total capital cost allowance for the car was $12,000, and $320 of interest was paid per month on a loan for the car. Min-ju drove the car a total of 20,000 kilometres in 2020. 8,000 of these were for work purposes. How much is Min-ju's total salesperson deduction for 2020?

Multiple Choice

• $21,850

• $11,760

• $12,460

• $0

TEX Co. was incorporated in 2020. Incorporation costs were $3,500. How much CCA is allowed in 2020 and how much operating expense is allowed in the year? (Round answers to 0 decimal places.)

Multiple Choice

• $225, $500

• $25, $3,000

• $175, $0

• $38, $3,000

Employers can deduct unpaid remuneration for tax purposes

Multiple Choice

if paid within 60 days of the taxation year.

if paid within 365 days of the taxation year.

if paid within 180 days of the taxation year.

if paid within two years of the taxation year.

Answer 1

ANS : $11,760

ANs : $225, $500

• Operating expenses are incurred in the regular operations of business and include rent, equipment, inventory costs, marketing, payroll, insurance, and funds allocated for research and development.

• The amount of capital cost allowance (CCA) you can claim depends on the type of property you own and the date you acquired it.

  Group the depreciable property you own into classes. A specific rate of CCA generally applies to each class. The main classes of depreciable rental property and the rates that apply to each class are discussed in Rental – classes of depreciable properties.

ANS :if paid within 365 days of the taxation year.