After working for 30 years and due to old age (55 years), Rufino retired from his employment on December 31, 2018 as a rank and file employee. As a consequence, he received the following: a. Salary, 300,000 b. Christmas gift, 10,000 c. Anniversary gift, 2,000 d. Loyalty award (tangible personal property), 15,000 e. Retirement pay, 750,000.
After working for 30 years and due to old age (55 years), Rufino retired from his employment on December 31, 2018 as a rank and file employee. As a consequence, he received the following: a. Salary, 300,000 b. Christmas gift, 10,000 c. Anniversary gift, 2,000 d. Loyalty award (tangible personal property), 15,000 e. Retirement pay, 750,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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After working for 30 years and due to old age (55 years), Rufino retired from his employment on December 31, 2018 as a rank and file employee. As a consequence, he received the following:
a. Salary, 300,000
b. Christmas gift, 10,000
c. Anniversary gift, 2,000
d. Loyalty award (tangible personal property), 15,000
e. Retirement pay, 750,000.
1. Based on the above data, the amount subject to tax is?
a. 327,000
b. 1,077,000
c. 312,000
d. 317,000
2. In the above problem, how much is Rufino's income tax due?
a. 15,400
b. None
c. 12,400
d. 13,400
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