Activity: MNO is a sole proprietorship owned and managed by Mario N. Ortiz. amounted to P690,000.00 and corresponding cost of sales is P310,500. Aside from sales, there are no other revenues for MNO. Mario opted to used the standard deduction scheme. Based on his accounting books, sales Mario is also fully employed at San Miguel Corp. As an employee, he receives a gross monthly salary of P45,000, net of mandatory contributions, of P120,000. Mario is married with four qualified dependents. Compute for Mario's income tax due and income tax payable.

Activity: MNO is a sole proprietorship owned and managed by Mario N. Ortiz. amounted to P690,000.00 and corresponding cost of sales is P310,500. Aside from sales, there are no other revenues for MNO. Mario opted to used the standard deduction scheme. Based on his accounting books, sales Mario is also fully employed at San Miguel Corp. As an employee, he receives a gross monthly salary of P45,000, net of mandatory contributions, of P120,000. Mario is married with four qualified dependents. Compute for Mario's income tax due and income tax payable.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: You are provided with the following amounts for Janet Mattera for the current year: • Net…

A: Taxable income is the net income earned by an individual on which the tax is payable. It is…

Q: Wattle Ltd owns all the share capital of Ashgrove Ltd. The income tax rate is 30%. During the period…

A: The profit before tax of Ashgrove Ltd on the sale of inventories to Wattle Ltd is $10,000. However,…

Q: Check by work Valence Corporation’s Form 1120S shows ordinary income of $88,000 for the year.…

A: Capital gain is the income earned on the sale of capital asset.

Q: Ralph Henwood was paid a salary of $82,400 during 20-- by Odesto Company. In addition, during the…

A: The "Federal Insurance Contributions Act" is abbreviated as FICA. The FICA tax deducts money from…

Q: Ralph Henwood was paid a salary of $83,600 during 20-- by Odesto Company. In addition, during the…

A: a.

Q: Ralph Henwood was paid a salary of $64,600 during 20-- by Odesto Company. In addition, during the…

A: Payroll taxes refer to those taxes paid by both employer and employee in order to fund the employee…

Q: A Chicago area manufacturing company (“JKL”) has 2 unrelated owners. The CPA firm (“Flexible”) for…

A: In the business, ethical issues surrounded a wider areas within the firm's ethical standards. The…

Q: Hemant Ltd, carries on a manufacturing business and had a number of transactions for the current tax…

A: Ordinary income is that income that usually arises in the normal course of business and it does not…

Q: Cowen Company began its operations in August of the current year. During August and September, the…

A: FUTA termed as Federal Unemployment Tax Act which is law or tax that is imposed on the federal…

Q: During the current year, Swallow Corporation, a calendar year C corporation, has the following…

A: Scenario: Swallow Corporation owns 12% of Brown corporation stock.Swallow's taxable income after…

Q: Magnus Corporation has $120,000 of revenues for the year. They also have the following expenses…

A: Corporate taxable income=Gross Income-Allowable Deductions

Q: Required: 1) Assume that Business is a cash method taxpayer. Compute its taxable income. 2) Assume…

A: Taxable income is the portion of income subject to taxation after allowable deductions. It includes…

Q: The profit and loss statement of Treadwell Ltd., an S corporation, shows $265,000 book income.…

A: Section 1231 gain: Gain from the sale of a real or depreciable property used in a trade or business…

Q: Do not use Ai

A: Start with Reported Net Income: Slumar reported a net income of $7,289,200 before tax. Bad Debts…

Q: In each of the following independent cases, determine the amount of business interest expense…

A: A business entity can claim deduction for the qualified interest expense in a year subject to…

Q: The profit and loss statement of Kitsch Ltd., an S corporation, shows $100,000 book income. Kitsch…

A: An income statement, sometimes referred to as a profit and loss statement (P&L) is a type of…

Q: Jack and Jill are owners of UPAHill, an S Corporation. They own 25 and 75 percent, respectively.…

A: Taxable income at marginal rates is referred to as ordinary income. Some examples of ordinary income…

Q: Based on the above, what is the amount of Braddock's accumulated earnings and profits as of January…

A: Accumulated earnings and profit: > Accumulated earnings and profits are the company's net profit…

Q: A business employs three individuals, whose taxable earnings to date (prior to the current pay…

A: Federal Unemployment Tax Act (FUTA) is payable on the first $7000 earnings of an employee.Earnings…

Q: lph Henwood was paid a salary of $83,800 during 20-- by Odesto Company. In addition, during the year…

A: FICA Taxes -A federal law known as the Federal Insurance Contributions Act (FICA) mandates that…

Q: Lone Psychic Experience is a sole proprietorship established this year. Alice Lone established the…

A: In a sole proprietorship, the equity account represents the owner's equity . The equity account is…

Q: In Year 1, George Michael Co. had financial accounting income of $850,000 before taxes, including…

A: The income tax expense is determined by applying the relevant tax rates to the taxable income, which…

Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

Activity:
MNO is a sole proprietorship owned and managed by
Mario N. Ortiz.
amounted to P690,000.00 and corresponding cost of sales is
P310,500. Aside from sales, there are no other revenues for
MNO. Mario opted to used the standard deduction scheme.
Based on his accounting books, sales
Mario is also fully employed at San Miguel Corp. As an
employee, he receives a gross monthly salary of P45,000, net
of mandatory contributions, of P120,000. Mario is married
with four qualified dependents.
Compute for Mario's income tax due and income tax
payable.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Given :

VIEW

Calculation of taxable income :

VIEW

Calculation of tax due :

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The B/S and I/S for Company ABC are below. At the beginning of year 1, all B/S items are zero except for a Factory, that begins year 1 at 200,000. All inventory is sold by the end of each year (EOY), but some sales and some expenses are “on account”. EBT for tax purposes is the same as the EBT on the Income Statement. Corporate taxes are 21%, and are paid in cash at EOY. All cash the company has at EOY is paid as cash dividends to shareholders. Calculate the dividends issued by the company each of the four years. End Of Yr1 EOY 2 EOY 3 EOY 4 Balance Sheet (B/S) Accounts Receivable 5,000 15,000 15,000 10,000 Accounts Payable 4,000 6,000 8,000 10,000 Cash 0 0 0 0 Factory 175,000 150,000 125,000 100,000 Income Statement (I/S) Revenues 190,000 200,000 200,000 200,000 COGS + SG&A (110,000) (90,000) (70,000) (50,000) Depreciation…
3 Net Income. A calendar year S corporation has the following information for the current taxable year: Sales $180,000 Cost of goods sold. Dividend income Net capital loss Salary to Z. Life insurance for Z (70,000) 5,000 (4,000) 12,000 500 Other operating expenses Cash distributions to owners 40,000 20,000 Assume Z is single and her only other income is $30,000 salary from an unrelated employer. She is a 20% owner with a $10,000 basis in the S stock at the beginning of the year. Calculate the S corporation's net ordinary income and Z's adjusted gross income and ending basis in the S corporation stock.
The following items of income are reported by Cute, a CPA Salary as an accountant P150, 000 Overtime pay 30,000 13th month pay and other bonuses 15,000 Audit retainers fee 60,000 Capital gains from sale of car 25,000 How much is the tax due?
Truson Company paid a 4% SUTA tax on the taxable wages of $108500. The taxable wages under FUTA were $89400. What was the net FUTA tax of Truson Company? Round to the nearest cent
None
Black Company, organized on January 2, 20X1, had pre-tax accounting income of $500,000 and taxable income of $800,000 for the year ended December 31, 20X1. The only temporary difference is accrued product warranty costs, which are expected to be paid as follows: 20X2 20X3 20X4 20X5 $100,000 50,000 50,000 100,000 Circumstances indicate that it is highly likely that Black will have taxable income in the future. It had no temporary differences in prior years. The enacted income tax rate is 21%. Required: 1. In Black's December 31, 20X1, balance sheet, how much should the deferred tax asset be? 2. Suppose that as of December 31, 20X1, a newly enacted law called for the tax rate to change to 25%, effective January 1, 20X3. Then what would be the amount of the deferred tax asset at December 31, 20X1?
Lewes Company appropriately uses the installment sales method for tax purposes and the accrual method for revenue recognition for accounting purposes. Pertinent data at December 31, 2016, the close of the first year of operations, are as follows: Revenue Recognized Revenue Recognized Customer for Accounting Purposes for Tax Purposes Lowe's Builders $200,000 $100,000 Top Down Plumbing 500,000 350,000 Glass Plus Windows 600,000 350,000 Lewes's tax rate is 30%. What amount should be included in the deferred tax account at December 31, 2016 for these installment sales?
Sa, Nah, Pasa formed a joint operation. Sa is to act as managing joint operator and is designated to record the joint operation accounts in his books. As manager, he is allowed a salary of P12,000. Remaining profit (loss) is to be divided equally.The following balances appear at the end of 20x0 before adjustments for joint operation’s inventory and profits. Joint operations cash (dr), 51,000; Nah, capital (dr), 6,000; Pasa capital (cr), 30,000. The arrangement is to terminate on December 31, 2020 with unsold merchandise costing P13,000. Assuming that the joint operations loss is P1,000, what is the balance of the Joint Operation’s account before the distribution of profit?
Young Corporation has net income of $14,000. Young's federal income tax expense was $3,200. In addition, the company had an exclusion of $2,000, penalties of $500, and business meals with clients of $3,000. How much was Young's taxable income?
Please do not give image format
Charlotte, Inc. began business on January 1, 2021. Its pretax financial income for the first two years was as follows: 2021 $550,000 2022 590,000 The following items caused the only differences between pretax financial income and taxable income. In 2021, the company terminated a top executive and agreed to 120,000 of severance pay. The amount will be paid $40,000 per year for 2021 - 2023. The 2021 and 2022 payments were made. For financial statement purposes, the $120,000 was expensed in 2021. For tax purposes, the severance pay is deductible as it is paid. In 2021, the company reported depreciation expense in its financial statements of $82,000. Depreciation expense for tax purposes was 134,500. The difference will reverse evenly over the next three years (2022-2024) The tax rate in 2021 is 20% and no tax rate changes have been enacted that affect the years 2022 – 2024. Required: Determine taxable income for 2021…
Please Do not Give image format