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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For each of the following situations, indicate the nature and amount of the penalty that could be imposed. Description of the Penalty AND Penalty Amount $ 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 account. c. Gerald understated his tax liability by $10,000. The total amount of tax that should have been shown on his return was $70,000.
Allan left the following bank deposits upon his death: - A bank- 1,000,000 - B bank- 2,000,000 - C bank- 3,000,000 How much is the final tax required to be withheld by the bank assuming the heirs will opt for final tax?
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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Tom Brown is 36 years old and has never been married. Frank, age 13, is Tom1s nephew who lived with hin all year. Tom provided all of his support and provifded over half the cost of keeping up the home. Tom earned 44,000 in wages Tom is legally blind and cannot be claiment as a dependent by another taxpayer. Tom and Frank are U.S citizens, have valid social securities numbers, and lived in the U.S. the entire year. Do the individual income tax return? If need to use a state use mississippi
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Assuming Ana is a non-resident alien, the gross estate is: Ana, died in Syria leaving the following properties: P 1,000,000 2,000,000 100,000 House and lot in Syria Vacant lot in Manila Shares of stock in a foreign corp., 70% of the business is located in the Philippines Shares of stock in a domestic 200,000 corp., 60% of the business is located in the Philippines Car in Manila 500,000 P2,000,000 P2,500,000 P3,800,000 P2,600,000

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