A taxpayer made available the following financial information:Gross sales - Php 10,000,000Cost of sales - Php 6,000,000Expenses:Salaries and wages – Php 1,000,000Transportation and travel – Php 20,000Rental - Php 240,000Representation expense - Php 200,000Depreciation expense - Php 200,000Office supplies – Php 20,000Miscellaneous expenses – Php 10,000How much is the taxable income if the taxpayer is a domestic corporation and opted for OSD?ChoicesPhp 2,400,000Php 6,000,000Php 4,000,000Php 0How much is the income tax due if the taxpayer is an individual resident citizen?ChoicesPhp 361,000Php 340,000Php 621,200Php 2,278,800How much is the total allowable deduction if the taxpayer is a resident citizen?ChoicesPhp 1,500,000Php 1,590,000Php 1,570,000Php 7,590,000 GRADUATED TAX TABLE UNDER TRAIN LAW (January 1, 2018 to December 31, 2022)OverBut not over The Tax shall bePlusOf Excess Over250,000250,000400,00020%250,000400,000800,00030,00025%400,000800,0002,000,000130,00030%800,0002,000,000 8,000,000490,00032%2,000,0008,000,0002,410,00035%8,000,000

Income tax due is the amount of tax which is due on income taxable during the year.

Answered: A taxpayer made available the following…

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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Taxpayer - Resident citizen Gross sales 2,600,000 Other operating income 200,000 Non-operating income 150,000 Cost of sales 1,000,000 perating expenses 500,000 Non-operating expenses 60,000 How much is the net taxable income using itemized deduction? How much is the net taxable income using optional standard deduction?
Subject : Accounting 4- A taxpayer filing as Single has $25,600 of taxable income. Included in gross income is a 1099-INT with Box 1 interest income of $5,000, tax-exempt interest of $3,000, and interest on U.S. savings bonds of$1,200. Additionally, the taxpayer has a 1099-DIV with dividend income of $3,000, of which $2,000 is qualified dividends, and capital gains distributions of $500. Is the following statement accurate about this scenario? The total taxable interest and dividends on the federal tax return is $9,200.
A taxpayer receives $5,000 on their federal return in taxable unemployment income. What is the amount that must be subtracted from the state return to calculate the portion taxable to the State? A. Potentially a $5,000 subtraction. The amounts need to have been taxable on the federal return and administered by California's EDD to be excludable. Unemployment received from other states is still fully taxable in most cases. B. $5,000 subtraction - California does not include amounts received from any unemployment source in State income. C. $0 subtraction - The taxpayer may, however, claim a credit for the job search costs to reduce their taxable exposure to unemployment income. D. $0 subtraction - This is taxable income to the State.
1. A taxpayer paid the following salaries during the year70,000 Salaries of administrative employees40,000 Salaries of sales and marketing employees120,000 Salaries of factory production workersCompute the deductible salaries expense 2. The following relate to the inventory of tools held by the taxpayer120,000 Inventory of tools, January 1, 2022400,000 Purchases of tools130,000 Inventory of tools, December 31, 2022What is the amount of deductible tools expense?
Heron Corporation, a calendar year, accrual basis taxpayer, provides the following information for this year and asks you to prepare Schedule M-1. Net income per books (after-tax) $239,700 Taxable income 195,000 Federal income tax liability 59,300 Interest income from tax-exempt bonds 5,000 Interest paid on loan incurred to purchase tax- 2,000 exempt bonds Life insurance proceeds received as a result of 100,000 death of Heron's president Premiums paid on policy on life of Heron's 4,500 president Excess of capital losses over capital gains 2,000 Retained earnings at beginning of year 375,000 Cash dividends paid 90,000 Tax depreciation in excess of book 7,500 depreciation
17. A taxpayer filing as Single has $25,600 of taxable income. Included in gross income is a 1099-INT with Box 1 interest income of $5,000, tax-exempt interest of $3,000, and interest on U.S. savings bonds of $1,200. Additionally, the taxpayer has a 1099-DIV with dividend income of $3,000, of which $2,000 is qualified dividends, and capital gains distributions of $500. Is the following statement accurate about this scenario? Show me an option Click Yes' or 'No' for each option until complete
Allowable Business Investment Losses (ABIL) can be deductible from any source of income to the taxpayer in a given tax year. Name any two sources of income that ABIL can be deducted from: _____________ and _____________.
What is the taxable income if the taxpayer had chosen itemized deduction? * D. Co. is a domestic corporation with the following data for 2002 (first year of operations): Gross profit from sales Dividend from domestic corporation Capital gain on sale of land in the Philippines held for two years (sold at P1,000,000) Capital gains on sale of shares of domestic corporation held for two months (direct sale to buyer) Business expenses Capital loss on bonds of domestic corporation held for 6 months P2,000.000 20,000 200,000 120,000 1,100,000 30,000
A taxpayer with $3,000 in unreimbursed employee expenses and an AGI of $50,000 will have what deductible value of these expenses on his state return? (Assume that all expenses are valid in the state of California) O 1000 O 2000 3000
US Tax Law Taxpayer is single and has the following items: state taxes withheld, $7,500; property taxes $6,000; DMV, $500. His state tax deduction on schedule A would be A. $14,000 B. $13,500 C. $6500 D. $10,000 E. Some other amount
An investor has a taxable income of $125997. He has an investment property which earns $21780 in rental income and incurs $35782 in expenses, including maintenance, local council rates, land tax and interest on a mortgage loan. What is his total income tax payable (excluding the 2% Medicare surcharge)? a. $23865 b. $26865 c. $24865 d. $27865
4. A taxpayer did not file his income tax return for taxable year 2019 on time. On March 12, 2022, he was notified by the BIR of his failure to file the return. The taxpayer filed the return and paid the tax on April 15, 2022. Assuming that the basic tax is PHP 120,000, the total amount payable is a. PHP 210,000 b. PHP 208,800 c. PHP 156,000 d. PHP 180,000

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