ruffle limited a public company specializes in the games business for their fiscal y 4373864

Ruffle Limited, a public company, specializes in the games business. For their fiscal year ended October 31, 2010, the company’s tax liability was $54,024. Due to the success of the board game, Run About, the company’s bottom line has increased significantly; resulting in a tax liability of $69,036 for the fiscal period ended October 31, 2011. Ruffle Limited’s climb to success came to a halt in the next fiscal year. Due to increased competitions, profits are expected to decline significantly and the controller of Ruffle Limited estimates the tax payable for the fiscal period ending October 31, 2012 to be $45,000. In addition, the controller informed you that, due to cash flow problems, the actual instalments for June, July, and August 2012 were $1,050 less than the amount required. The controller also indicated that in order to compensate for this shortfall an installment payment of $4,500 was made in October 2012 and that the remaining outstanding balance would be included in the December remittance. REQUIRED The controller has asked you, his tax accountant, to provide him with the following information: (A) The required installments for the 2012 taxation year. (B) Assuming that the estimated tax of $45,000 for 2012 is correct, what payment should be made on December 31, 2012 to stop further interest charges? Assume that the prescribed interest rates on the deficient installments are: • Last quarter of 2011: 9% • First quarter of 2012: 8% • Second and third quarters of 2013: 7% • Last quarter of 2014: 8%. View Solution:
Ruffle Limited a public company specializes in the games business

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