5A Accounting Applications (Answers to Exercises)

Chapter 5: Accounting Applications (answers to exercises)

Answers for 5.1 may not be correct because they may be using outdated tax rate information. Consult with your peers if your answer is not matching with the answer provided.

  • 5.1 Sales Taxes

  1. Stax = $682.49
  2. Stax = $750.74
  3. Stax = $747.49
  4. Stax = $727.99
  5. S =$796.45; HST Tax Amount = $103.54
  6. S = $818.17; GST Tax Amount = $40.91; PST Tax Amount = $40.91
  7. January Remit $5,471.40; February Refund $2,202.96
  8. Winter Remit $7,171.20; Spring Refund $1,025.25; Summer Remit $9,803.30; Fall Refund $1,191.65
  9. a.Alberta is best = $1,396.45; b. Savings = $17.48
  10. S=$529.99; GST Tax Amount = $26.50
  11. Can’t purchase at Stax=$3,050.94; Down Payment = $45.08
  12. Stax=$4,477.30; GST Tax Amount = $199.88; PST Tax Amount = $279.83
  13. Q1 Remit $17,865; Q2 Remit $35,370; Q3 Refund $8,105; Q4 Refund $24,210
  14. March Remit $951.15; April Refund; $1,257.15; May Remit $2,953.65
  15. Higher in Ontario by 1.5274%
  16. Total PST = $13.02; Total GST = $52.46; Total HST = $13
  17. Remit $378,227.85
  18. PST Rate = 9.505%
  19. a. S = $352.72; b. S = $1,682.81; c. S = $19,465.09; d. S = $4,736.57
  20. Remit $31,331.89

  • 5.2 Property Taxes

  1.  AV = $176,000; Property Tax = $4,719.35
  2. Market Value = 247,272.73; Property Tax = $2,699.00
  3. Assessed Value = $400,000; Tax Policy = 80%
  4. Market Value = $1,300,000; Tax Rate = 0.675832
  5. Property Tax = $5,241.17
  6. AV = $9,000,000
  7. Property Tax = $2,250.05
  8. Municipal Property Tax = $1,975.97; Library Property Tax = $220.01; School Property Tax = $1,481.76; Total Property Tax = $3,677.74
  9. Tax Rate = 1.109305
  10. Mill Rate = 8.9929
  11. Increase the mill rate by 0.3626
  12. Mill Rate = 14.5412
  13. 10.0247 and 5.0124
  14. $192,318.89 and $179,524.86
  15. Mill Rates Under 70% Policy: 5.6872 then 5.6060; Mill Rates Under 75% Policy: 5.3081 then 5.2322

  • 5.3 Exchange Rates and Currency
    E    xchange

  1.  69,482.40 US$
  2. 130,500€
  3. 37,744.20 AU$
  4. 170,046 AU$
  5. 322,976.60 C$
  6. 8,780,200 ¥
  7. 0.0103 ¥ per C$
  8. 53,130 C$
  9. Purchase $518.75 less than before
  10. a. 2,784 £; b. 4.6739%
  11. 649.44 C$
  12. Elena lost $29,489.81 on her investment
  13. The products cost $12,800 C$ less than before
  14. 3.5%.
  15. Buy in the U.S. to save $196.60
  16. a. Scotiabank’s sell rate fee is 2.3%; The kiosk’s sell rate fee is 4.5%; b. The airport kiosk charges 2.52% more than Scotiabank
  17. Booking it themselves saves $1,824.98
  18. Currency fluctuations have decreased profits by $38,432.12
  19. a. 639.38 US$; b. €15,153.19; c. ¥166,983; d. 140,447.70 MXN$
  20. Columbia Pesos = $1,084.71 C$

 

 

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Fundamentals of Business Math Copyright © 2021 by Ana Duff, adapted from work by J. Olivier and D. Lippman is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

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