1 Suppose the taxpayer originally purchased the machinery by paying $12.000 in cash and giving the seller a note for $12.000. When she sold it she received $38,000 in cash and the buyer assumed the S12.000 note. a What is the amount realized? b. What is the adjusted basis of the machinery? c What is the gain on the sale of the machinery?
Q: A taxpayer made available the following financial information: Gross sales - Php 10,000,000…
A: Here in this question, we are required to answer taxable income in Philippines if used OSD. Under…
Q: 3. Jake purchased a $235,000 crane for his construction business. He sold the crane for $175,000…
A: The federal government under Tax Cuts and Jobs Act of 2017 (TCJA) imposes numerous rules on the…
Q: A taxpayer made available the following financial information: Gross sales - Php 10,000,000 Cost of…
A: Income tax due is the amount of tax which is due on income taxable during the year.
Q: What is the taxable income if the taxpayer had chosen itemized deduction? A citizen who is married,…
A: Calculation of taxable Income
Q: 1 Suppose the taxpayer received $35,000 in cash, a ring worth $3,000 and the buyer assumed the…
A: Financial Management: Financial management comprises of two words i.e. Finance and management.…
Q: Jim sells a parcel of land for $75,000 cash, and the buyer assumes Jim’s liability of $10,000 on the…
A: Gain or loss on sales is the difference between the sum of selling price and assumed liability and…
Q: Gareth, a sales tax registered trader purchased a computer for use in his business. The invoice for…
A: Assets whose value is not realized within a period of one accounting cycle is known as Non-current…
Q: On 4/1/20, Sookie sold land that she held for investment purposes. Sookie received $200,000 in cash…
A: As per IRS rules for installment sales, tax is levied on the gain on every year's collection. Gain…
Q: Glenn carries on a business and is registered for GST. He made a taxable supply of goods in the…
A: Taxable supply is broadly defined to mean the supply of goods and / or services that are taxable…
Q: On November 1, 2020 Mr. Raul Ferrer a VAT registered taxpayer made the following purchases from VAT…
A: VAT is the value added tax. Vat rate in Philippines is 12%. Input vat of capital goods should be…
Q: A taxpayer made available the following financial information: Gross receipts - Php…
A: Gross Receipts Php 10000000 Less: Cost Of Service Php 6000000 Salaries…
Q: How much of the following is gross income subject to income tax? * Description Amount Cancellation…
A: Answer: Gross Income subject to income tax: Cancellation of indebtedness for service rendered -…
Q: 1. How much is the book value of the interest purchased by Jamili? 2. Who will receive the proceeds…
A: A partnership is an arrangement between two or more people to run a business together and split the…
Q: uch would be the tax on the transfer of ownership?
A: Answer: Sales consideration = P500000 Fair Market Value = P700000 Higher of above two = P700000 When…
Q: Mr. XYZ, is negotiating to buy a parcel of property for his business. The seller of the property is…
A: The prices to assign to a hard and fast quality square measure its purchase cost and any…
Q: Ana, a self-employed resident citizen provided the following data for 2018 taxable year: Sales…
A: SOLUTION- COMPUTATION OF TAX DUE - GROSS SALES 2800000 LESS- TAX EXEMPT INCOME (250000)…
Q: . The taxpayer is VAT-registered. He purchased goods from a VAT-supplier for 200,000 price exclusive…
A: 1) In the given goods are purchased for 200,000 ( exclusive of VAT) VAT = 12% ( 200000 x 12%) The…
Q: Which of the following is not true about capital assets?
A: Capital Assets:- Capital assets are both movable and immovable properties, purchased by the company…
Q: A taxpayer made available the following financial information: Gross receipts - Php…
A: Total allowable deduction if the taxpayer is a domestic corporation = Cost of service +…
Q: Ben purchased a brand-new car. A portion of the selling price was financed by a bank which the car…
A: The documentary stamp tax is a tax that is charged on the sale or purchase of the property. This is…
Q: How much gain should be reported for tax purposes?
A: Meaning : The profit which arrives from the sale of Capital Assets is known a Capital Gains. The…
Q: A taxpayer made available the following financial information: Gross sales - Php 10,000,000…
A: Taxable income is the foundation income on which taxes are levied. It includes some or all of the…
Q: A taxpayer made available the following financial information: Gross receipts - Php…
A: SOLUTION- CALCULATION OF INCOME FROM BUSINESS- GROSS RECEIPTS 10000000 LESS- COST OF…
Q: Jimmy transfers a building with an adjusted basis of $50,000 and a fair-market value of $150,000 to…
A: The following computations are done to evaluate the gain on transfer of building to XYZ Inc.
Q: Anika purchased a property and pays Php250,000 cash and the balance is to be repaid in 20 annual…
A: Present Value of annuity refers to the current value of a series of equal cash flows or payments at…
Q: a. How much of the property taxes can be deducted by Sally and how much by Kate? Sally can deduct $…
A: Solution:- Given, Sally owns annual property taxes = $9,000 She sells the property to Kate on March…
Q: ng the year, Irv had the following transactions: Long-term loss on the sale of business use…
A:
Q: A taxpayer made available the following financial information: Gross sales - Php 10,000,000…
A: Taxable revenue is the money of income required to calculate an individual's or a business's tax…
Q: 1 Suppose the taxpayer received $35,000 in cash, a ring worth $3,000 and the buyer assumed the…
A: Financial Management: Financial management comprises of two words i.e. Finance and management.…
Q: Suppose Ms. Heiter's property has an assessed value of $230,000. She originally paid $60,000 to…
A: Annual property taxes can be calculated by multiplying assessed value of property by the property…
Q: depletion
A: As per the question, a self-employed taxpayer paid $700,000 for a gold mine that is projected to…
Q: Now that you are making the big bucks, your spouse has decided to venture into the rental property…
A:
Q: An individual, who is a real estate dealer, sold a residential lot in Quezon City at a gain of…
A: The question is related to taxation
Q: A taxpayer made available the following financial information: Gross receipts - Php 10,000,000…
A: Taxable income refers to the AGI (Adjusted Gross Income) less the itemized deductions that the…
Q: A taxpayer made available the following financial information: Gross receipts - Php…
A: Allowable Deduction In the business entity the allowable deduction which includes all the expenses…
Q: 1. The taxpayer is VAT-registered. He purchased goods from a VAT-supplier for 200,000 price…
A: Calculation of the output VAT : So the correct answer is A) 48,000
Q: A taxpayer with $3,000 in unreimbursed employee expenses and an AGI of $50,000 will have what…
A: Unreimbursed Employee Expenses:-These are those expenses for which employers do not pay back or…
Q: A taxpayer had a 300,000 net income before the following dealings in properties: Ordinary Gain…
A: As per our protocol we provide solution to the one question only and you have asked two questions…
Q: Thoren has the following items for the year: $4,000 of short-term capital gain, $5,000 of 0%/15%/20%…
A: Short term capital losses first offset against short term capital gains and Long term capital losses…
Q: Mr. A sold his family home for P5,000,000. He bought the land for P1,000,000 and introduced…
A: calculation of capital gain are as follows
Q: A taxpayer is itemizing their return and they're trying to calculate the deductible amount of state…
A: Itemized deductions: It the amount of deduction that can be deducted from the adjusted gross income…
Q: Rafael sold an asset to Jamal. What is Rafael's amount realized on the sale in each of the following…
A: Rafael's amount realized on the sale will be equal to Cash & fair value of assets minus…
Q: 1. The taxpayer is VAT-registered. He purchased goods from a VAT-supplier for 200,000 price…
A: VAT means the value added tax which is levied on sale and purchase . Vat paid on purchases is booked…
Q: A taxpayer made available the following financial information: Gross sales - Php 10,000,000…
A: Gross profit = Gross sales - Cost of sales = Php 10,000,000 - Php 6,000,000 = Php 4,000,000
Step by step
Solved in 2 steps
- 1 Suppose the taxpayer received S35,000 in cash, a ring worth $3,000 and the buyer assumed the seller's note. a. What is the amount realized? b. What is the adjusted basis of the property? c. What is the gain on the sale of the property?A) Suppose that Charles holds the land for appreciation. deductible taxes from AGI ( ) B) Suppose that Charles holds the land for rent. Suppose that Charles holds the land for rent.1. According to the article by Tony Dimitriadis (see Supplementary Study Materials Folder), whether an amount received by a taxpayer following the sale of a capital asset (e.g. real estate) will be treated as capital or income depends largely on: Select one: The intention of the taxpayer when the property was first acquired The degree of renovation and development carried out on the property Whether the taxpayer held on to the property, rather than making a short term profit Whether the taxpayer is an individual or a business taxpayer All of the above are important considerations 2. Select the INCORRECT statement from the following options: Select one: The Cost Base of Personal Use Assets excludes Element 3 expenses (Ownership Costs) An antique vase bought at a garage sale for $200 and sold for $20,000 is exempt from CGT The indexation rate for assets acquired on 2 February 1986 was 41.4 All costs incurred under Element 3 (Ownership Costs) should be included in the indexation…
- The disadvantage of actual cash value coverage of personal property compared to replacement cost coverage is that it A) will reimburse you for replacement cost minus estimated depreciation. B) will reimburse you for the cash value of a new item. C) must be reported as a loss on your tax return. D) does not have to be reported as a loss on your tax return. E) none of the aboveTaxes deducted from an employee's earnings to finance social security and medicare benefits are called FICA taxes. ____ 2. For an interest bearing note payable, the amount borrowed is equal to the face value of the note. ____ 3. Any costs incurred that are necessary to correct mistakes made during the installation of a new piece of equipment should be added to the cost of that asset. ____ 4. The only depreciation method that is acceptable when submitting tax returns to the IRS is the MACRS method. ____ 5. When land is purchased to construct a new building, the cost of removing any structures on the land should be charged to the building account.Taxes deducted from an employee's earnings to finance social security and medicare benefits are called FICA taxes. ____ 2. For an interest bearing note payable, the amount borrowed is equal to the face value of the note. ____ 3. Any costs incurred that are necessary to correct mistakes made during the installation of a new piece of equipment should be added to the cost of that asset. ____ 4. The only depreciation method that is acceptable when submitting tax returns to the IRS is the MACRS method. ____ 5. When land is purchased to construct a new building, the cost of removing any structures on the land should be charged to the building account. True and false questions....
- Accounting When you dispose of a property and end up with a gain or a loss, it may be treated in one of 2 ways. What are they? When you dispose of personal-use property, you usually do not have a capital gain. Why not? To calculate any capital gain or loss, you need to know the following 3 amounts: the proceeds of disposition the adjusted cost base (ACB) the outlays and expenses incurred to sell your property Using these three amounts, what is the formula to calculate your capital gain or loss? 4. Capital Gains are reported on Schedule 3. What line does the sale of Personal Use Property go on?2. Which of the following situations will result in a future deductible amount? Carrying amount of the asset > tax base of the asset Tax base of the asset > carrying amount of the asset Carrying amount of the liability < tax base of the liability Financial income > Taxable incomeRegarding the calculation of realized Gain or Loss, which of the following are true: O A. If the amount realized exceeds the property's adjusted basis, the result is a realized gain. O B. If the property's adjusted basis exceeds the amount realized, the result is a realized loss. O c. The amount realized from a sale or other disposition of property is the sum of any money received (which includes any debt relief) plus the fair market value of other property received. O D. The fair market value is reduced by selling expenses such as advertising, commissions, and legal fees associated with the sale or other disposition. O E. All of the above are true OF. None of these are true OG. A, B are true OH, B, C, D are true OI. A, B, C are true OJ. B & D are true OK. C & D are true
- 1.Whatare the conditions under Income Tax Act, ACT 896 forexpenditure to be allowed as a deduction when computingbusiness, employment or investment income?2.List5 allowable deductions from the assessable income3.Assumethat the written down value of assets in the pool 2 isGH 100 000 and the repairs and improvements is GH 20 000What will be the tax allowable expenses?4.Giventhat the assessable income for the company isGH 140 000 the finance cost is GH 90 000 and there is nocorresponding finance gain, what is the allowable expense?Which of the following items of interest expense may be deducted from gross income? Interest deducted in advance by the bank on a loan where no amortization payment has yet been made and the taxpayer reports income on cash basis. O Interest on the corporation's preferred stocks. O Interest for delinquency in the payment of taxes. O Interest paid out of a personal loan by the taxpayer.Why might it be more advantageous for a taxpayer to demonstrate that they ... Why might it be more advantageous for a taxpayer to demonstrate that they have realised a capital gain, rather than a profit from buying and selling an asset? O a. Capital gains does not apply where the person disposing of the asset did not purchase the asset for profit making purposes. O b. Capital gains can be deferred indefinitely by a taxpayer, until they actually make a capital loss. O c. A capital gain on the disposal of an asset is not subject to tax if the amount was realised for non-business purposes. O d. If a capital gain, then CGT is levied against the difference of the cost base and the disposal amount, and a 50% discount may be available to a non company taxpayer. Which statement is correct? Which statement is correct? O a. A company is resident of Australia if it is incorporated in New South Wales O b. The ATO determines which taxpayers are residents or non-residents through its rulings program…