Correct answer accounting questions A local bakery generates annual revenue of $320,000. Their yearlyoperating expenses amount to $230,000. With a corporate tax rateof 18%, determine the bakery's taxable income and net income

Step 1: Definition of Taxable Income and Net IncomeTaxable income is the amount of income subject to…

Answered: A local bakery generates annual revenue…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter15: Choice Of Business Entity—other Considerations

Section: Chapter Questions

Problem 72P

See similar textbooks

Similar questions

Garrison Shops had a SUTA tax rate of 3.7%. The state's taxable limit was $8,000 of each employee's earnings. For the year, Garrison Shops had FUTA taxable wages of $67,900 and SUTA taxable wages of $83,900. Compute: Round your answers to the nearest cent. a. Net FUTA tax $ b. Net SUTA tax $
Last year, Marylynn opened Baron’s Appliance Sales and Service. Her tax accountant provided the year’s results. Gross income = $320,000 Business expenses = $149,000 MACRS depreciation = $95,000 Average federal tax rate = 18.5% Average state tax rate = 6% City and county flat tax rates combined = 4.5%Determine the following for Marylynn.a. Taxable income.b. Exact amount of federal income taxes.c. Estimate of percent of the GI needed to pay all income taxes—federal, state, city and county.
Grevilla Corporation is a manufacturing company. The corporation has accumulated earnings of $950,000, and it can establish reasonable needs for $400,000 of that amount. Calculate the amount of the accumulated earnings tax (if any) that Grevilla Corporation is subject to for this year. $_____________
Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and the amount of federal income tax withholding are as follows. Lemurs payroll deductions include FICA Social Security at 6.2%, FICA Medicare at 1.45%, FUTA at 0.6%, SUTA at 5.4%, federal income tax as previously shown, state income tax at 5% of gross pay, and 401(k) employee contributions at 2% of gross pay. Record the entry for the employee payroll on December 31.
Peyton Company's payroll for the year is $741,150. Of this amount, $472,770 is for wages paid in excess of $7,000 to each individual employee. The SUTA rate in Peyton Company's state is 2.9% on the first $7,000 of each employee's earnings. Compute: Net FUTA tax
During the eight-week period following Paycheck Protection Program (PPP) loan funding, the taxpayer is a sole proprietor and his or her business spends $75,000 on payroll costs, making it eligible for up to $100,000 in PPP forgiveness. The extra $25,000 above payroll costs may be allocated across which of the following expenses paid or incurred during the same 8-week period?
At the end of the first quarter, the accountant for David Fly Fishing Outfitters determines that the total sales tax payable for the quarter is $3,240.50. When the sales tax is paid to the state, the accountant debits Sales Tax Payable and credits Cash for the total amount due.
Peyton Company's payroll for the year is $737,910. Of this amount, $472,120 is for wages paid in excess of $7,000 to each individual employee. The SUTA rate in Peyton Company's state is 2.9% on the first $7,000 of each employee's earnings. Compute: Net FUTA tax $________ Net SUTA tax $_________ Total unemployment taxes $________
A summary of the transactions of Ramstage Co, which is registered for sales tax at 15% showed the following for the month of August 20X9. Outputs $60000(exclusive of sales tax) Inputs $46000(inclusive of sales tax) At the beginning of the period Ramstage Co owed $3400 to the government tax authority,and during the period $2600 was paid to the tax authority. What was the amount owed to the government tax authorities at the end of the accounting period?
Lopez Company has a single employee, who earns a salary of $2,500 per pay perlod (or $60,000 per year). The employee's paycheck, dated January 15 of the current year, included withholdings of $400 for employee income taxes, $191.25 for FICA-Social Security Taxes, and $150.00 for FICA-Medicare Taxes. FUTA specifies a federal tax rate of 6.0% on taxable wages up to the first $7,000 for each employee. Complete the necessary journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the compensation expense for FICA taxes and FUTA taxes. Note: Enter debits before credits. Date General Journal Debit Credit January 15 Clear ento Maw.popacallourn Pecordentn
Please see image Thanks
mattola company is giving each of its employees a holiday bonus of $100. what will be the gross amount of each employee pays a state income tax of 2.8%

SEE MORE QUESTIONS

Recommended textbooks for you

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

Individual Income Taxes

Accounting

ISBN:

9780357109731

Author:

Hoffman

Publisher:

CENGAGE LEARNING - CONSIGNMENT

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

Individual Income Taxes

Accounting

ISBN:

9780357109731

Author:

Hoffman

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

Income Tax Fundamentals 2020

Accounting

ISBN:

9780357391129

Author:

WHITTENBURG

Publisher:

Cengage

SEE MORE TEXTBOOKS

A local bakery generates annual revenue of $320,000. Their yearly operating expenses amount to $230,000. With a corporate tax rate of 18%, determine the bakery's taxable income and net income