A taxpayer engaged in service business provides you with the following. Determine the gross income under CASH basis for EACH YEAR (2019 , 2020), * 2019 2020 Description Collections from services rendered-current P600,000 P800,000 Billings for revenues earned but uncollected Collections from uncollected billings in 2019 Collections from uncollected billings in 2020 Advance collections for services not yet rendered 500,000 200,000 470,000 50.000 200,000 300,000 How much is the gross income under cash basis? P1,400,000 P1,720,000 P1,370,000 P1,050,000 P1,100,000 P1,050,000 RO00 000 R1 530.000

Q: Is anyone available to take the earned income credit regardless of age?

A: Earned income tax credit helps the individuals from lower income group to get tax refund or rebate.

Q: Under the matching principle, when are expenses recorded?

A: Accrual accounting: The method of accounting which recognizes revenues before they are received, and…

Q: es a SIMPLE IRA have a matching contribution from the employer to the employee?  Yes or No.

A: Simple IRA refers to the savings incentive match plan for the employees of the company which is a…

Q: Explain the differences between owning property as a tenant in common a joint tenant a tenant by the…

A: A co-ownership is where one person or group owns a piece of property with another person or group.…

Q: How would you advise the partners in developing a method for dividing income?

A: Partnership:   Partnership is firm where two or more persons come together to business to share the…

Q: Which of the following partnership items are not included in the self-employment income calculation?…

A: The incomes and losses of the partnership has been divided into the two components there are…

Q: Record the employer's benefit expense.

A: Payroll taxes are defined as the amounts collected by the government or revenue collection authority…

Q: Is Abandoned Spouse one of the filing statuses? Yes No

A: In order to file the return of the tax, a taxpayer has the file under the filing status and it is…

Q: When do prepayments occur? Accruals?

A:

Q: What is the Effect of Foreclosure on Junior Lienors?

A: Effect of foreclosure on Junior lienors is: Junior Lienor’s claims on the property mortgage are…

Q: What is the purpose of the qualified business income deduction under 199A? How is the deduction…

A:

Q: Write the various matters that need adjustments at the time of retirementof a partners.

A: When one or more partners of a firm leaves the firm and the remaining partners continue the…

Q: What are the critearia for determining if a fiduaciary relationship exists?

A: Fiduciary relationship represents the relationship that is between the trustee and beneficiary.

Q: Define Homestead allowance.

A: Generally probate laws provide adequate protection to the family members of the decedent whom the…

Q: Describe the tax treatment of partnership distributions

A: Introduction: A partnership is a legally binding agreement among two or more persons to manage &…

Q: Explain the effect of guaranteed payments

A: Guaranteed payments to partners are payments meant to compensate a partner for services rendered or…

Q: What are scheduled, interim, and past due statements? Please explain.

A: Financial statements are documents that detail a company's operations and cash flows results. . The…

Q: Form 1099-G is an information return used to show the payment of: a. Dividends. b. Interest. c.…

A: As per IRS:"File Form 1099-G, Certain Government Payments, if, as a unit of a federal, state, or…

Q: Which of the following items may be subject to the self-employment tax? a.Dividend income b.Interest…

A: Introduction Self-employment tax: Self-employment tax is the tax which is imposed on business owners…

Q: Will you consider a partnership as a taxpayer? Yes or No.

A: Let us discuss about this in detail.