PP Ltd, a Client of Your Firm, Has a November 30th

question 89

Multiple Choice

PP Ltd., a client of your firm, has a November 30th year end and has requested you to ad- vise them on what its monthly instalments for the 2011 tax year will be.Its taxes payable for its November 30, 2009 and November 30, 2010 years were $13,800 and $13,200, re- spectively.Its estimated taxes payable for the November 30, 2011 year are $14,400.PP Ltd.wants to pay the lowest amount possible, without incurring interest penalties.What would its instalments be?

• A)Twelve payments at $1,200 per month.
• B)Twelve payments at $1,100 per month.
• C)Twelve payments at $1,150 per month.
• D)Two monthly payments at $1,200 each, followed by ten monthly payments at $1,140 each.
• E) None of the above.