Calculate the amount of severance pay

Assignment Help Accounting Basics
Reference no: EM132743622

Question: John Peterson was employed by an insurance company in, Lethbridge, Alberta since July 1986. He was earning $1800 biweekly when his employment was terminated on January 13, 2019. Upon termination, John receives six months severance plus his outstanding vacation pay of $2400. John did not participate in a company-sponsored RPP or a deferred profit sharing plan.

1) Calculate the amount of severance pay. John will receive.

2) calculate the EI premium for John's final pay. Earnings.

3) How much of John severance pay is eligible to transfer to an RRSP

4) Calculate the tax to be deducted on the remaining severance pay. if John had $15,000 of severance pay transferred to an RRSP.

Reference no: EM132743622

Questions Cloud

Should the project be accepted or rejected : Compute the NPV statistic for Project Y if the appropriate cost of capital is 11 percent. Should the project be accepted or rejected
What is the net present value of the decision : Victor Manufacturing Company is considering investing in a new machine at a price of $25.5 million to replace its existing machine. The current machine
What amount should manufacturing plant be initially record : Factor Company built an item of plant manufacturing division. What amount should the manufacturing plant be initially recorded?
Explain the different types of bonds : Explain the different types of bonds and their characteristics.
Calculate the amount of severance pay : John Peterson was employed by an insurance company in, Lethbridge, Alberta since July 1986. He was earning $1800 biweekly when his employment was terminated on.
Identify the more popular types of bonds : Identify the more popular types of bonds and elaborate where necessary.
How much is non-controlling interest under partial goodwill : Basahin Company acquires 80% of Mabuti Company for P600,000 on January 1, 20x8. Mabuti reported capital stock of P400,000 and retained earnings of P200,000.
Find and record the entry for purchase : The appraised values are $135,000, $67,500, and $22,500 for land, building, and equipment, respectively. In journal provided, record the entry for purchase
What is its account receivable balance : Webster Company reported sales for 2020 of $400,000. Webster Company listed $25,000 of inventory on its balance sheet. Using a 365-day year.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Describe how the accounts receivable

Accounts Receivable has a balance of $471,200 and Allowance for Doubt-ful Accounts has a balance of $27,500. Describe how the accounts receivable

  Prepare the necessary general journal entries

Prepare the necessary general journal entries to bring the allowance for doubtful debts to the appropriate amount at 30 June 2015 and 30 June 2016

  Determine the dollar value of cost of goods sold

Sales were 530 units at $20. Using the LIFO method, determine the dollar value of Cost of Goods Sold for the month of May

  What is the entry Jones needs to make on December

Jones Ventures Inc. purchased 10% of the outstanding stock of Bowie Company. What is the entry Jones needs to make on December 31

  Why accountants might be construed as being powerful

Why accountants might be construed as being powerful individuals

  Calculate the equivalent units for conversion costs

XYZ Company uses process costing to track its costs in two sequential production departments: Calculate the equivalent units for conversion costs

  Manhattan fashions inc a high-fashion dress manufacturer is

manhattan fashions inc. a high-fashion dress manufacturer is planning to market a new cocktail dress for the coming

  Break-even chart to illustrate this solution

Each additional unit a company produces costs £45 to manufacture and it can sell each unit it produces for a fixed price of £72. The firm also has fixed costs of £8,100.

  Calculate the annual depreciation

Stine Company purchased machinery with a list price of $64,000. If Stine uses straight-line depreciation, calculate the annual depreciation

  Discuss store-level expenses by automating some activities

Becca's Burger Stand, which has restaurants nationwide, wants to reduce its store-level expenses by automating some activities for drive-in customers

  Basic transaction processing

On November 1 of the current year, Richard Simmons established a sole proprietorship. The following transactions occurred during the month:

  Suppose the unearned portion of the rent collected

Refer to the situation described in BE 16-4. Suppose the unearned portion of the rent collected was $40 million at the end of 2012. Taxable income is $200 million. Prepare the appropriate journal entry to record income taxes.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd