Answered: Ahmed withdrew 10,000 dinars for the…

Ahmed withdrew 10,000 dinars for the purpose of paying personal expenses to him. This will lead to Capital increase decrease in liabilities Liabilities increase Capital decrease

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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Suppose your friend is being considered for a promotion at work. The promotion is expected to provide your friend an extra 10,000 dollars per year in salary. However, your friend does not want the promotion, because he just looked at his tax return and saw that if he were to earn just 5000 more per year in taxable income, it will push him into a higher tax backet. What should you tell you friend? 1) You are an idiot. Never turn down money, because tax brackets are applied 2) You should arrange for the promotion to only increase the salary by 5000 3) The decision is a logical application of NPV concepts 4) None of these are correct
Interest and Penalties (LO 12.3) For each of the following situations, select the nature of the penalty and amount of the penalty that could be imposed. a. Larry is a tax protester and files his tax return in the name of "Mickey Mouse." b. Anne writes a check for $900 in payment of her taxes that she knows will not clear the bank due to insufficient funds in her C. account. Gerald understated his tax liability by $10,000. The total amount of tax that should have been shown on his return was $70,000. Description of the Penalty Filing a frivolous tax return Bad check ✓ Accuracy-related penalty, substantial understatement Penalty Amount
LO.3 Vella owns and operates an illegal gambling establishment. In connection with this activity, he has the following expenses during the year: Rent $ ‍24,000Bribes 40,000Travel expenses 4,000Utilities 18,000Wages 230,000Payroll taxes 13,800Property insurance 1,600Illegal kickbacks 22,000What are Vella’s total deductible expenses for tax purposes?
Question:34 For the current year, Susan had a salary income of $20,000. In addition, she reported the following capital transactions during the year: Table 1-54 Long-term capital gain $ 7,000 Short-term capital gain $3,000 Long-term capital loss -$2,000 Short-term capital loss -$5,000 There were no other items includable in her gross income. What is the amount of her adjusted gross income for the current year? a. $25,000 b. $24,000 c. $23,000 d. $19,000 e. None of these choices are correct.
Q- 5,6
3. Enrique Requiestas, resident citizen, widower, with a dependent minor brother, had the following data on income and expenses. Gross business income Business expenses Interest from savings deposit, BPI-Makati, Philippines Prize in a literary contest he joined Prize received for achievement in literature (did not join the contest) Gain from sale of bonds (maturity is 6 years) Cash he inherited from his uncle P 500,000 200,000 50,000 100,000 10,000 5,000 300,000 20,000 Winnings from illegal gambling Compute the total final tax from certain income. a.P34,000 b. P36,000 с. Р32,000 d. P108,000
9. Problems and Applications Q4 When someone owns an asset (such as a share of stock) that rises in value, he has an "accrued" capital gain. If he sells the asset, he "realizes" the gains that have previously accrued. Under the U.S. income tax, realized capital gains are taxed, but accrued gains are not. When capital gains taxes are lowered, the investor has a incentive to sell the investment. Cuts in capital gains tax rates can raise tax revenue if the lower tax rate the volume of trade transactions by a large enough margin.
A married couple has a net short-term capital loss of $2,000 and a net long-term capital loss of $3,000 for the year. If the couple has no other gains or losses, what, if anything, carries over to the next year? 1) $2,000 short-term capital loss 2) $2,000 long-term capital loss 3) $2,000 short-term capital loss; $3,000 long-term capital loss 4) $500 short-term capital loss; $1,500 long-term capital loss 5) The couple has no capital loss carryover
(a) Mr. Talukder retired very recently receiving 70% lump sum of his total retirement payment of 5 Million taka of which 60% he invested in a bank against the following cash-inflows: Year-End Amount 1 165000 2-5 200000 6-9 350000 10 450000 Use a known method to identify if he made the right decision not. Also, сompute his total profit/loss for this or investment. (b) Mr. X is about to be a Billionaire receive a payment of $1B for the investment he made 20 years ago with 19% APR compounding semi-weekly. Compute the big investment he made all these years ago.
Last year, lana purchased a $100,000 account receivable for $90,000. During the current year, Lucy collected $97,000 on the account. What are the tax consequences to Lucy associated with the collection of the account receivable? No subsequent collections are expected. a.$7,000 gain b.$3,000 loss c.$13,000 loss d.$2,000 gain
4. Tax avoidance is deliberately ignoring a specific provision in the Income Tax Act. True or False 5. Ms. Burke had employment income of $52,100, a loss from her unincorporated business of $51,000 and interest income of $8,200. As the result of dispositions of capital property, she had capital gains of $22,400 and capital losses of $28.200. During the year she also paid childcare costs of $3,100 and paid spousal support to her ex-husband of $5,100. Based on the above information answer the following three (3) questions () Ms. Burke's total income under ITA 3(a) is: A: $1,100 B: $9,300 C: $52,100 D: $60,300 (6) Mrs. Burke's income under ITA 3(b) and allowable capital loss carry over are: A: nil ($0) and $5,800 B: negative $5,800 and $0 C: nil (S0) and $2.900 D: negative $2900 and $0 (ii) Ms. Burke's Net Income for Tax Purposes is: A: A loss of $4,700 B: $1,100 C:A loss of $1,800 D: S0 6. An individual was required to make instalments payments for 2020 if their net tax owing in 2020 is…
Chapter 1 TRP 1-3 Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. Assume all taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year. Jin Xiang is single and lives at 2468 North Lake Road in Deerwood, MN 56444. Her SSN is 412-34-5670. She worked the entire year for Lakeland Automotive. The Form W-2 from Lakeland contained information in the following boxes: Wages Federal W/H Social security wages Social security W/H (box 1) = (box 2) = (box 3) = (box 4) = (box 5) = Medicare W/H (box 6) Medicare wages = $ 42,851.89 $ 4,583.91 $ 42,851.89 $ 2,656.82 $ 42,851.89 $ 621.35 On the weekends, Jin worked at Parts-Galore, a local auto parts store. The Form W-2 from Parts-Galore contained information in the following boxes: Wages (box 1) = Federal W/H (box 2) = Social security wages (box 3) = Social security W/H (box 4) = Medicare wages (box 5) =…