Acco 340 Midterm Notes

Good Essays
Question 1

Mr. Robert Paris is a salesman for Eiffel Ltd., a public corporation. He provides you with the following information.

Salary income $30,000

Commission Income $45,000

He is covered by his employer’s group term insurance plan for 2x his salary income. The premium paid by Eiffel Co. is $8 for each $1,000 of coverage.

On January 1, 2007, he received the following loan from Eiffel Co: • $80,000 to purchase a home (he transferred from Quebec City on December 2006)
The loan carried an interest at 2%. As at December 31, 2007, no interest has been paid on the loan and no portion of the capital has yet been repaid on these loans.

His contribution to the company’s defined benefit plan is $4,000.

He bought a new car in 2007 for $26,000 and incurred the following expenses in earning his commission income: • Automobile expenses (re: total of 20,000 km driven) $8,000 • Meals and entertainment $2,600 • Convention expenses of $2,000 on conference entitled “The Art of Enticement – a Salesman Approach” • Other travelling expenses (taxi, train, hotels) of $1,600
Note: 70% of his 20,000 km pertain to employment

On June 5, 2007, he acquired 150 shares through the employee stock option plan for $18/share. At the time the shares were trading on the Toronto Stock Exchange for $30. Mr. Paris was granted the option in 2007 at a time when the shares were trading for $18.

On December 3, 2007, he sold 100 shares fro $40 each. Prior to June 5, 2007, Mr. Paris did not own any shares of Eiffel Ltd. and he did not make any election.

For 2007, the prescribed rates for employee loans are as follows:
Q1 4%
Q2 5%
Q3 5%
Q4 5%

Required – compute Mr. Paris’ minimum 2007 net income. Ignore GST/QST.

Question 2

Martinez Power Tool Corporation Ltd. has carried on business in Canada since its incorporation under the Canada Business Corporations Act in 1972. Its net income for the year ended 2007, as determined

You May Also Find These Documents Helpful

  • Satisfactory Essays

    - They bought 600 shares of the stock CCC on January 15, 2008 for $13,000 and sold those same shares on March 15, 2008 for $12,100.…

    • 486 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Exam w answers

    • 5251 Words
    • 21 Pages

    On January 2, 2013, Henry, Cabot, and Lodge formed a three-person equal partnership with Henry and Cabot each contributing $100,000 and Lodge contributing securities with a basis to him of $60,000 and a fair market value of $100,000. On February 28, 2013, the partnership sold the securities for $130,000. The amount of the gain to be allocated to Lodge is:…

    • 5251 Words
    • 21 Pages
    Good Essays
  • Better Essays

    5. Your proposal should have a clear introduction, body, and conclusion that are appropriately labeled with these headings.…

    • 633 Words
    • 3 Pages
    Better Essays
  • Satisfactory Essays

    Mgt 315 Class Notes

    • 1097 Words
    • 5 Pages

    1. Textbook differentiates among several types of interviews. Which of the following types of interviews allows a high degree of interviewer discretion in choosing the questions to ask each candidate?…

    • 1097 Words
    • 5 Pages
    Satisfactory Essays
  • Satisfactory Essays

    p3 unit 19 notes

    • 496 Words
    • 2 Pages

    P3 In this assessment I will be explaining recent demographic change within their home country.…

    • 496 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Anth 146 exam notes

    • 23256 Words
    • 94 Pages

    The Pueblo peoples of the desert Southwest were quite unlike any of the cultures that we have discussed thus far in the course. Because of their entirely sedentary farming lifestyle and permanent housing, 19th century thinkers considered Pueblo Indians to be higher on a social evolution scale than other Native Americans. In other words, Puebloan groups were considered superior to other tribes around them because their behavior and living practices appeared to more closely resemble those of white society. For this reason, a considerable amount of energy was put into documenting life among Puebloan groups, and we have some fairly good ethnographic documents to work with.…

    • 23256 Words
    • 94 Pages
    Better Essays
  • Good Essays

    Acc 290 Week 5 Homework

    • 286 Words
    • 2 Pages

    Numerous amounts of information can be found in an Annual Financial Report. Team A is again utilizing Wal-Mart’s Annual Financial Report to answer the questions for the week five assignment. The questions for week five dig a little deeper into the financial report than the questions for week four. We will analyze the annual financial report and realize the information it has to offer. This paper will address the following subjects-- assets listed in proper order, how the assets are classified, what the cash equivalents are, and the company’s total current liabilities at certain periods. Team A will answer these questions in summary form below and by analyzing the financial report will make us better understand the concepts of reading financial reports. It will also make us more knowledgeable in this area of accounting, being able to read and decipher the financial statements, so that we may apply this knowledge for possible future investment endeavors.…

    • 286 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Com/340 Week 5 Final Exam

    • 956 Words
    • 4 Pages

    -3 x 1.66 pts. = minus 5 pts. = 45 pts. out of 50 pts. = 90%…

    • 956 Words
    • 4 Pages
    Good Essays
  • Good Essays

    ACCT 553 Week 3 Homework ES

    • 2043 Words
    • 13 Pages

    These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below.…

    • 2043 Words
    • 13 Pages
    Good Essays
  • Powerful Essays

    NT1330 FINAL EXAM NOTES

    • 1446 Words
    • 5 Pages

    IPv4 addresses are commonly represented using what is called dotted-decimal notation, in which the decimal value of each byte is shown, using periods to separate the bytes.…

    • 1446 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    2nd exam notes

    • 754 Words
    • 3 Pages

    Appeals must be filed within a timely manor, no set time because various jurisdictions have different times…

    • 754 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Hist 1301 Exam Notes

    • 14693 Words
    • 59 Pages

    Gender is different from sex: biological! Gender refers to roles which are cultural, and vary across cultures. Gender has specific understanding and practices.…

    • 14693 Words
    • 59 Pages
    Powerful Essays
  • Powerful Essays

    Acct 550 Midterm

    • 1228 Words
    • 8 Pages

    These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below.…

    • 1228 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    Acc 305 Week 4 Paper

    • 313 Words
    • 2 Pages

    Determine the inventory balance Altira would report in its August 31, 2011, balance sheet and the cost of goods sold it would report in its August 2011 income statement using each of the following cost flow methods:…

    • 313 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    On page F-48, section 24 of the Green Mountain Coffee Roasters, Inc 10-K Annual Report, they list the Subsequent Events. There was a “Form 8-K dated August 24, 2011 stating the Company entered into an agreement to see all the outstanding shares of Van Houtte USA Holdings, Inc to ARAMARK Refreshment Services, LLC and subsequently, on October 3, 2011, completed the sale for an aggregate cash purchase price of approximately $145 million.”…

    • 1112 Words
    • 5 Pages
    Good Essays