1. Assuming the taxpayer is a CORPORATION, how much is the OSD and net taxable income using OSD? Data of an individual taxpayer for the current taxable period:Gross salesP3,200,000Cost of sales1,900,000Sales discounts granted (for timely payments)Discounts granted to senior citizens and PWDSIncidental income (operating)Other income (non-operating)Operating expenses100,00080,000200,000150,000400,000

Tax Tax refers to the compulsory payment made by individuals or corporations to the government.…

Answered: Assuming the taxpayer is a CORPORATION,…

Business

Accounting

Assuming the taxpayer is a CORPORATION, how much is the OSD and net taxable income using OSD?

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: The tax rules for determining business income are identical to those used for determining property…

A: Taxable income refers to the base upon which an income tax system imposes tax. In other words, the…

Q: 13. Statutory employees: a.Claim their expenses as deductions for AGI. b.Report their expenses as

A: Statutory employees refers to an independent contractor who is considered as an employee in order to…

Q: Explain the difference between an individual and a corporation or society when filling taxes.

A: Individual Taxpayer: A taxpayer is someone who owes money to the federal, state, or municipal…

Q: Describe the difference between a tax credit and a tax deduction Which is more beneficial to the…

A: Tax Deduction/Credit Tax deductions lowers the amount of tax owed where as tax credit reduce the…

Q: Which of the following is not tax deductible? Gift tax Local income tax Real estate tax…

A: The objective of the question is to identify which among the given options is not tax deductible.…

Q: What is qualified business income deduction in taxation/accounting? And, how is it used to reduce…

A: Certain business owners can benefit from the Qualified Business Income (QBI) deduction. Taxpayers…

Q: Income is taxable, unless specifically included in the IRS. What are some examples of tax…

A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs…

Q: How do I calculate the taxable income?

A: The IRS allows businesses to carry forward their net operating losses for a time period of 20 years…

Q: Define the term Corporate taxable income?

A: Definition: A corporate tax is a type of direct tax that is levied by the state on the income of a…

Q: a. Deductions b. Exceptions c. Exclusions d. Any of the above

A: Computation of Total Taxable Income 1 Income under head Salary XXXX 2 Income under head…

Q: Asia owns stock that is listed on the New York Stock Exchange, and this year the stock increased in…

A: Economic income refers to the income earned by any individual or corporation that may be realized or…

Q: What types of income should not be classified as such on a tax return? Why shouldn't they be…

A: Answer Nontaxable income won’t be taxed, whether or not you enter it on your tax return. nontaxable…

Q: Which of the following is not a “tax status” for an asset? Capital loss asset. Capital asset.…

A: Capital Assets:All property that taxpayers own is capital asset, unless it falls into one of the…

Q: Explain why someone might owe a tax balance

A: The objective of this question is to understand the reasons why an individual might owe a tax…

Q: what are the two components of income tax expense

A: PLEASE LIKE THE ANSWER Firstly, income tax expense means an amount of tax expense incurred on the…

Q: Why would a taxpayer file a tax return if not required to do so?

A: A person is required to file the income tax return as per their respective country’s taxation law.…

Q: How did you find the taxable income in part a

A: Taxable income is the income that is subjected to tax. It is the amount of sales as reduced by cost…

Q: 1.The definition of gross income in the tax law is: A. All items specifically listed as income in…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: A taxpayer uses

A: There are two basis in accounting acrual and cash. In accural basis…

Q: Two reason why expenses may not be deductiable for income tax/ corporatiion tax purposes.

A: Deductible expenses: These include all the expenses that are allowed to be deducted from the gross…

Q: What is an unrecognized tax benefit and how does it affect a company's current income tax expense?

A: The Meaning of Income Tax: FASB defines income tax as a tax on earnings. It is measured in terms of…

Q: Distinguish between exemptions and deductions in determining taxable income

A: The determination of taxable income has a structured and tax laws guided process, this…

Q: What is the taxable base for federal income taxes? a. Gross income b. Net worth c. Total assets d.…

A: Taxable base is the amount on which income taxes are calculated by applying the applicable rate.

Q: Which is a deductible tax expense? Surcharges and penalties

A: Deductible tax expenses In a business entity the deductible tax expenses which includes any ordinary…

Q: Billy is a 16-year old dependent on his parents' tax return. Billy has the following income. He has…

A: Introduction The taxable income of a child is calculated by bifurcating his earned income and…

Q: If qualified dividends are part of taxable income how do you find the tax liability? Do you have to…

A: Step1: Dividend income is taxable but it is taxed in different ways depending on whether the…

Q: Explain three main reasons expenses may not be deductible for income tax/corporation tax purposes.

A: Business expenses: These are costs you incur while operating your business. Expenses are recorded on…

Q: What is the statute of limitations for income tax returns?

A: Given: The concept of a statute of limitations for the income tax returns.

Q: What are some of the other types of income that must be reported on an taxpayer's tax return? How is…

A: Taxable income is any remuneration received by a person or corporation that is utilized to evaluate…

Q: MC: Topic: Income Taxation Under this income taxation scheme, the full amount of tax is withheld by…

A: Taxes are the amounts due to be paid to government on account of income earned or on sale of goods…

Q: Taxable income is a) gross income less deductions b) total income excluding exempt less…

A: Taxable income is the income on which tax is computed.

Q: How is Gross Income defined in the Tax Code and what are the implications to individual and business…

A: Hi, since you have asked multiple questions, we are answering the 1st question for you. To get the…

Q: When applying credits against a taxpayer's gross tax liability, nonrefundable personal credits are…

A: False. When applying credits against a taxpayer's gross tax liability, the general order is as…

Q: What are some common taxpayer penalties?

A: Common taxpayer penalties are those fines or penalties which are to be paid in case of non…

Q: taxpayer must always include his or her state income tax refund in income. True or False

A: Income tax:- Income tax means whenever an assessee, in a financial year earns certain income which…

Q: What are the general requirements regarding income, investments, and dividends with which a REIT…

A: Introduction: Real estate investment trust is a company that owns or primarily operates real estate…

Q: How do you call a deductible temporary difference? a. Current tax asset. b. Deferred tax asset.…

A: As per IAS 12 The amount of the income taxes which will be Recoverable in future period in respect…

Q: rent income,

A: Option a is wrong because final income tax is the ultimate tax liability on the whole income. Option…

Q: How can we determine the corporate taxable income?

A: Taxable income: It can be defined as the income which serves as the base for computing the tax…

Q: unts that are made available to a taxpayer without substantial restrictions are included in gross…

A: In income tax there are different types of doctrine for different types of recognition of income and…

Q: How does the federal income tax system treat dividends receivedby a corporation versus those…

A: Income tax is the portion of income paid to the government or the authorized taxation bodies as the…

Q: Which of the following accurately describes when a taxpayer may report capital gain/loss…

A: Capital Gain :— Sale or Transfer of Capital Assets on which Consideration is Involved resulting in a…

Q: In computing the taxable gross income of a taxpayer engaged in business and/or profession, what is…

A: When taxable income from business and profession is calculated, the already determined net operating…

Q: What is the meaning of “person” when the term is used in the Income Tax Act? _________, __________…

A: Person includes : an Individual; a Hindu Undivided Family (HUF) ; a Company; a Firm an association…

Question

1. Assuming the taxpayer is a CORPORATION, how much is the OSD and net taxable income using OSD?

Data of an individual taxpayer for the current taxable period:
Gross sales
P3,200,000
Cost of sales
1,900,000
Sales discounts granted (for timely payments)
Discounts granted to senior citizens and PWDS
Incidental income (operating)
Other income (non-operating)
Operating expenses
100,000
80,000
200,000
150,000
400,000

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

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 1 images

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

Which is a factor in determining federal income tax withheld? A. Level of wages B. Marital status C. Number of dependents D. Pay period E. All of the above
4) What are the similarities and differences (if any) between the income tax liability of residents and non-residents?
a. What is the Taxable Income? b. Assume F5 corporation is a resident foreign corporation, how much is the taxable income?
For federal income tax purposes, the difference between the total income and total expenses reported by a C corporation may be referred to as what type of income?
Which of the following taxes is both an employee and an employer tax?a. federal income tax.b. FUTA.c. local income tax.d. OASDI.
TRUE OR FALSE?? The Commissioner can estimate the income and expense of a taxpayer.
! Required information Problem 12-45 (LO 12-3) (Algo) [The following information applies to the questions displayed below.] Mason (single) is a 50 percent shareholder in Angels Corporation (an S Corporation). Mason receives a $191,000 salary working full time for Angels Corporation. Angels Corporation reported $444,000 of taxable business income for the year (2021). Before considering his business income allocation from Angels and the self-employment tax deduction (if any), Mason's adjusted gross income is $191,000 (all salary from Angels Corporation). Answer the following questions for Mason. (Leave no answer blank. Enter zero if applicable.) Problem 12-45 Part a (Algo) a. Assuming the income allocated to Mason is qualified business income, what is Mason's deduction for qualified business income?
Assume that it is a domestic corporation using itemized deduction, compute the net taxable income
What is the permanent difference between pretax accounting income and taxable income?
Assuming, the taxpayer is a domestic corporation, how much is the regular corporate income tax?
If the current tax expense is greater than the total income tax expense during the period, there must be a deferred tax benefit. TRUE OR FALSE
What is intraperiod tax allocation and why is it necessary? How is the income tax expense related to each major component of income disclosed on the income statement?