1st statement: Taxable income from self-employment (business and profession0 is reported on a quarterly and annual basis. 2nd statement: The quarterly income tax return shall filed and the tax paid as follows: 1st Q - not later than May 15, 2nd Q - not later than August 15, 3rd Q - not later than November 15 a. both statements are false b. 1st statement is true but 2nd statement is false c. both statements are true d. 1st statement is false but 2nd statement is true

1st statement: Taxable income from self-employment (business and profession0 is reported on a quarterly and annual basis. 2nd statement: The quarterly income tax return shall filed and the tax paid as follows: 1st Q - not later than May 15, 2nd Q - not later than August 15, 3rd Q - not later than November 15 a. both statements are false b. 1st statement is true but 2nd statement is false c. both statements are true d. 1st statement is false but 2nd statement is true

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following statements is not correct? Multiple Choice Corporations must estimate and prepay their income taxes through quarterly tax deposits. At the end of the year, when the worksheet is prepared, the Income Tax Expense account is adjusted only if the corporation owes additional taxes. Income Tax Expense may be shown as an operating expense on a corporation's income statement. The Income Tax Expense account may be either debited or credited in the adjusting journal entry for income tax at year-end.
Accounting income or loss for Aberdeen Corporation, following IFRS, is below: Year Accounting income/(loss) Tax rate percent Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 $160,000 250,000 80,000 (160,000) (380,000) 130,000 145,000 30 30 25 25 25 25 25 Assume that there were no permanent or temporary differences between accounting and taxable income. Required Prepare the tax-related journal entries for Year 3 to Year 7. Aberdeen Corporation believes that it will be able to use any loss carryforward in future years. Aberdeen Corporation will apply the available carryback provisions to the earliest years first. Include your calculations.
Which general principle applies to the reporting of income tax expenses under interim income statement accounting principles A Reporting should not be done unless there are unusual events that occur in the period and are expect to affect the fiscal year tax liability. B Reporting should be based on a prorate share of the previous fiscal year’s taxes C Reporting should be based on an estimate of the effective annual tax rate and tax liability for the full fiscal year. D Reporting should be based on the last year’s effective tax rates and tax liability for the full fiscal year.
Question 2: Which of the following is an accurate statement about SUTA tax? Answer: A. O Every state designates a taxable earnings threshold below which SUTA tax is not levied. O SUTA tax paid by an employer is typically less than FUTA tax paid for the same period. В. C. SUTA tax rates differ from one employer to another but do not change from year to year. D. The SUTA tax rate is based on the number of layoffs that an employer has experienced.
Expenditures currently deducted in the tax return but not included with expenses in the income statement until subsequent years create deferred tax liabilities. O True O False
Find the amounts that are missing from this summary of an income tax return: a. Gross income $42,685 b. Adjustments to income $3,670 c. Adjusted gross income d. Deductions $8,978 e. Adjusted gross income less deductions f. Exemptions (4 $3,100) $12,400 g. Taxable income Vince Bottolito's adjusted gross income on his federal tax return was $53.748. He claimed the standard deduction of $4,850, and one exemption at $3,100. What was Vince's taxable income? The Valek's gross income last vear was $64.890. They had adjustments to income totaling S3.829. Their deductions totaled $12.502. and they had four exemptions at S3.100 each. Find their taxable income.
Patriot Corporation reports the following results for the current year: View the current year results. Read the requirements. Requirement a. What are Patriot's taxable income and income tax liability for the current year? Begin by computing Patriot's taxable income. (If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.) Gross income Minus: Taxable income Requirements a. What are Patriot's taxable income and income tax liability for the current year? b. How would your answers to Part a change if Patriot's short-term capital loss is $12,000 instead of $2,000? Print Done - X Current Year Results Gross profits on sales Long-term capital gain Long-term capital loss Short-term capital gain Short-term capital loss Operating expenses Print $ 159,000 7,000 8,000 9,000 2,000 70,000 Done X
11.A taxpayer is claiming tax preparation expense as a legal and professional fee. They paid $430 at your office last year. The forms breakdown by cost is as follows: Form 1040- $100 Form Sch. C- $125 Form SE- $55 Form 8867- $75 Form 8863- $75 What is the correct amount that can be deducted on their Schedule C for the current year? Choose one answer. a. $280 b. $180 c. $355 d. $430
Select the best answer to the tax credit and corporate and partnership income tax issues. Mamey, Inc. had taxable income of $138,500 in 2020. What is the income tax expense for the year 2020? a. $29,085 b. $25,623 c. $34,625 d. $27,700 Which of the following items might not generally appear on the Schedule M-1 reconciliation a. Exempt interest income b. Meal expenses c. Office material expenses d. Federal income tax expense Cubey Industries, Inc. has a net book income of $76,100. For the year it had an income tax expense of $18,900. During the year Cubey received pandemic exempt income of $5,000 and had total food expense of $1,000 on books. What is the result of the Schedule M-1 reconciliation per Schedule line 10. a. $81,600 b. $90,500 c. $95,500 d. $95,000 The net operating losses (NOLs) that a corporation has available to be used against taxable income for the year 2020 are subject to a. A limitation of 90% of taxable income b.…
Nash reported the following pretax financial income (loss) for the years 2020-2022. 2020 $98,400 2021 (116,000) 2022 147,600 Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 20% for 2020-2022. Prepare the journal entries for the years 2020-2022 to record income tax expense, income taxes payable, and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-fifth of the benefits of the loss carryforward will not be realized. (Credit account titles are automatically indented when amount is entered. Do not indent manualy. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 2020 2021 (To record refund) (To record allowance) 2022 (To record income taxes) (To adjust allowance)
PC:5-25 (similar to) Quest In the current year, Murray Corporation is deemed to be a PHC and reports the following results: E (Click the icon to view the results.) Read the requirements. Requirement a. What is Murray's regular tax liability (ignoring any AMT implications)? Requirements Murray's regular income tax liability is Data Table a. What is Murray's regular tax liability (ignoring any AMT implications)? b. What is Murray's PHC tax liability? с. What measures can Murray take to eliminate its PHC tax liability after year-end and before it files its tax return? After it files its tax return? Taxable income $ 210,000 Dividend received from an 18%-owned domestic corporation 45,000 Print Done Dividends paid in the sixth month of the current year 20,000
Directions: Rad cach sentence carefully and determine whether the statement is TRUE or FALSE. 1. A taxpayer that clerived income solely from business is required to file BR Fonm1700. 2. A business income eamer is required to file an income tax retum if his or her taxable income @xceeds P250,000. 3. Ome a business is registered with the B IR, it is not requirod anymore to renew its registration annually. 4. A business income caner whose gross sales or gross reccipts and other nDIFOPAating income do ot exceed P3M has the option to be taxed at the optional 8% tax on gross sales/receipts arnd other non-oparating income. 5.The optional stanrlard decuction is computed as 60% of net sales. 6. A sole proprietor business acquired a vehicde for use in business during the year. The business is ot allowed to decluct the acquisition cost of the vehicle for taxation puiposes but is allowed to decduct the depreciation experse therefrom. 7. The parsonal exparses of the sole proprietor are allowed as…