For both tax and accounting purposes Ledux Inc. has a January 31 year end. Ledux is a publicly traded Canadian company.
For the year ending January 31, 2018, Ledux Inc. had federal Tax Payable of $193,420. During the following year ending January 31, 2019, the federal Tax Payable was $215,567. While final figures are not available at this time, it is estimated that federal Tax Payable for the year ending January 31, 2020 will be $203,345.
Required:
A. Calculate the instalment payments that are required for the year ending January 31, 2020 under each of the alternative methods available. Indicate which of the alternatives would be preferable.
B. If the Company did not make any instalment payments towards its 2020 taxes payable, and did not file its corporate tax return or pay its taxes payable on time, indicate how the interest and penalty amounts assessed against it would be determined (a detailed calculation is not required).

Question

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The Answer of For both tax and accounting purposes Ledux Inc. has a January 31 year end. Ledux is a publicly traded Canadian company.
For the year ending January 31, 2018, Ledux Inc. had federal Tax Payable of $193,420. During the following year ending January 31, 2019, the federal Tax Payable was $215,567. While final figures are not available at this time, it is estimated that federal Tax Payable for the year ending January 31, 2020 will be $203,345.
Required:
A. Calculate the instalment payments that are required for the year ending January 31, 2020 under each of the alternative methods available. Indicate which of the alternatives would be preferable.
B. If the Company did not make any instalment payments towards its 2020 taxes payable, and did not file its corporate tax return or pay its taxes payable on time, indicate how the interest and penalty amounts assessed against it would be determined (a detailed calculation is not required).

For Both Tax and Accounting Purposes Ledux Inc