18. Ceidi was notified by its depository bank that P1 million had been creditedto his savings account because of a million-dollar remittance by her sister inthe United States through a US bank. Ceidi lost no time in spending most ofthe money for various purposes, such as the purchase of luxuriouscondominium unit and a luxury car, money market placement, gifts torelatives, etc. It tumed out that Ceidi's sister remitted only $1,000 dollarsand not $1 million.Statement 1: The erroneous remittance Is taxable:Ador issued a check drawn on a bank in which he has no funds. Henegotiated the check and received P15,000 and immediátely proceeded tothe casino to try his luck but lost. Later, he was charged and convicted forviolation of Batas Pambansa Big. 22.Statement 2: The BIR can tax him for the P15,000 he got from negotiatingthe check.a. Statement 1 is true, while Statement 2 is false.b. Statement 1 is false, while Statement 2 is true.c. Both statements are true.d. Both statements are false.CS Scanned with CamScanner

Here both situation was contradiction in part of the taxation affairs because in the first situation…

Answered: Ceidi was notified by its depository…

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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Jane has a gross estate estimated at $12 million. Approximately 75% of her estate is attributable to the value of personal property and collectible items. Jane is married but has no children. Her husband does not have a large estate because he spends money freely and foolishly. Since Jane is much older than her husband, she would like for him to benefit from her wealth after her death without giving him control over the principal either while he is alive or at his death. Jane wants as little of her estate assets as possible to go toward payment of estate taxes. She currently has no will but has come to you for advice regarding provisions she should put in a will. Which provision, if placed in her will, would be best to increase the liquidity of her estate and accomplish her other goals? A) Establish a testamentary trust naming her husband as the income beneficiary and trustee B) Establish a power of appointment trust naming her husband as the income beneficiary and a…
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Sam Smith is a citizen and bona fide resident of Great Britain (United Kingdom). During the current year, Sam received the following income: • Compensation of $30 million from performing concerts in the United States. › Cash dividends of $10,000 from a French corporation's stock. ▸ Interest of $6,000 on a U.S. corporation bond. ▸ Interest of $2,000 on a loan made to a U.S. citizen residing in Australia. • Gain of $80,000 on the sale of stock in a U.S. corporation. Determine the source (U.S. or foreign) of each item of income Sam received. Income Income from concerts Dividend from French corporation Interest on a U.S. corporation bond Interest of $2,000 on a loan made to a U.S. citizen residing in Australia Gain of $80,000 on the sale of stock in a U.S. corporation Source

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