FACTS / DATA / GIVEN:. Тахрауer:• Taxable period:Receipts/earnings/balances during the period:Resident citizen2nd quarterDescriptionCollections for services rendered in 2ndAmountP50,000quarterCollections for services rendered in 1st20,000quarterCollections for services to be rendered inthe 3rd quarterUncollected billings-1st quarterUncollected billings-2nd quarter30,00010,00015,000COMPUTE: Taxable income in the 2nd quarter using CASH basisA. 50,000В. 60,000О С. 80,000D. 100,000

Under cash basis, cash received in 2nd quarter will be considered income for the 2nd quarter.

Answered: FACTS / DATA / GIVEN: • Taxpayer: •…

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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FACTS / DATA / GIVEN: Тахрауer: Taxable period: Expenses/payments during the period: Resident citizen 2nd quarter Description 1st quarter expenses paid in 2nd quarter 2nd quarter expenses paid in 2nd quarter 3rd quarter expenses paid in 2nd quarter 1st quarter expenses incurred but unpaid 2nd quarter expenses incurred but unpaid Amount P15,000 20,000 5,000 8,000 11,000 COMPUTE: Expenses in the 2nd quarter using ACCRUAL basis О А. 25,000 B. 31,000 C. 35,000 O D. 36,000
Pretax accounting income is computed to be $117,000 after including the effects of the appropriate items from the following information: Depreciation taken for tax purposes $93,000 Depreciation taken for accounting 16,000 Contributions to the pension plan 22,000 Pension expense 18,000 Interest revenue on municipal bonds 7,600 Penalty for late payment of income taxes 12,000 Unearned revenue for deposits received in advance 33,000 Unrealized gain on available-for-sale securities 8,000 Fine assessed for pollution of a river 25,000 Using the setup below, compute taxable income Pretax accounting income 99,000 Depreciation difference Pension cost difference Interest revenue Penalty Unearned revenue Unrealized gain Fine Taxable income
Required information Skip to question [The following information applies to the questions displayed below.] BCS Corporation is a calendar-year, accrual-method taxpayer. BCS was formed and started its business activities on January 1 of this year. It reported the following information for the year. Indicate BCS's deductible amount for this year in each of the following alternative scenarios. (Leave no answers blank. Enter zero if applicable.) e. On December 1 of this year, BCS acquired equipment from Equip Company. As part of the purchase, BCS signed a separate contract that provided that Equip would warranty the equipment for two years (starting in December 1 of this year). The extra cost of the warranty was $12,000, which BCS finally paid to Equip in January of next year.
1
Deductions from Gross Income Classify the items for deduction in the following scenarios. 3. A Domestic Corporation has the following data on income and expenses: Gross business income Deductions including SSS and PhilHealth contributions of P150,000 Contributions to the government for priority project in education Contributions to foreign private foundation Contributions to domestic charitable organization Compute for the deductible charitable and other contributions. P 6,200,000 2,500,000 100,000 100,000 190,000
GIVEN: Тахрауer: Resident citizen IN (Phils) P550,000 100,000 Description OUT (Abroad) Business gross income Business expenses Compensation income Interest income from long term bank deposit Interest income from short term bank deposit Royalty income Dividend income P600,000 5,000 2,000 160,000 25,000 18.000 COMPUTE: Taxable income subject to REGULAR income tax. A. 450,000 B. 1,050,000 C. 1,210,000 O D. 1,235,000
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3. Norte De University, a proprietary educational institution, has the following selected information for the taxable year 2X18: Tuition Fees Miscellaneous Fees Interest on Bank Deposits Rent Income Salaries and Bonuses, all personnel Other Operating Expenses Quarterly Income Tax Payments P 12,800,000 1,800,000 12,300 350,000 7,500,000 3,500,000 48,000 An additional school building was built and finished on April 1, 2X18 at the cost of P2,000,000 with a depreciable life of 50 years. a. Compute the income tax payable assuming the university opted to claim the cost of construction as an outright expense. b. Compute the income tax payable assuming the university opted to capitalize the cost of building construction. 3
A. Zero B. P4,000,000 C. P5,000,000 D. P29,000,000
Jeremy (unmarried) earned $101, 000 in salary and $6, 100 in interest income during the year. Jeremy's employer withheld $10,000 of federal income taxes from Jeremy's paychecks during the year. Jeremy has one qualifying dependent child (age 14) who lives with him. Jeremy qualifies to file as head of household and has $25,000 in itemized deductions. b. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $4,080. What is Jeremy's tax refund or tax due including the tax on the capital gain?Schedule Z - Head of Household
Taxpayer - Resident citizen Gross sales 2,600,000 Other operating income 200,000 Non-operating income 150,000 Cost of sales 1,000,000 perating expenses 500,000 Non-operating expenses 60,000 How much is the net taxable income using itemized deduction? How much is the net taxable income using optional standard deduction?
2. For the year ended December 31, 20x1, Mont Co.’s books showed income of P600,000 before provision for income tax expense. To compute taxable income for taxation purposes, the following items should be noted: Income from exempt municipal bonds P60,000Depreciation deducted for tax purposes in excess of depreciation recorded on the books 120,000Proceeds received from life insurance on death of officer 100,000Estimated tax payments -Enacted corporate tax rate 30% What amount should Mont report at December 31, 20x1 as its income tax liability?

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