Gary Amin carries on a successful collectibles business as a sole proprietor. His business income statement for the year is as follows: $150,000 Revenue Expenses: Lease payments on store displays $3,000 Insurance premiums (this year and next) $4,000 $15,000 $3,000 $2,000 $1,000 $40,000 $20,000 Photocopier/printer Amortization (straight line 5 yrs) Hurricanes tickets to take out clients Life Insurance for business loan Salary expense Income tax estimate Total expenses $ 88,000 Net Income $ 62,000 Note 1 - Photocopier/printer purchased in current year, Class 8 (20%) Note 2 - $35,000 of the salary expense was for Gary (the owner) Note 3 -Inventory sold for $12,000 that cost $8,000. Only 25% of the money has been collected in the current year Required: Calculate Business Net Income for Tax purposes

Gary Amin carries on a successful collectibles business as a sole proprietor. His business income statement for the year is as follows: $150,000 Revenue Expenses: Lease payments on store displays $3,000 Insurance premiums (this year and next) $4,000 $15,000 $3,000 $2,000 $1,000 $40,000 $20,000 Photocopier/printer Amortization (straight line 5 yrs) Hurricanes tickets to take out clients Life Insurance for business loan Salary expense Income tax estimate Total expenses $ 88,000 Net Income $ 62,000 Note 1 - Photocopier/printer purchased in current year, Class 8 (20%) Note 2 - $35,000 of the salary expense was for Gary (the owner) Note 3 -Inventory sold for $12,000 that cost $8,000. Only 25% of the money has been collected in the current year Required: Calculate Business Net Income for Tax purposes

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 35P

See similar textbooks

Similar questions

Mahigos owns the following businesses: Annual Gross Receipts Annual Gross Sales Restaurant 1,350,000 1,000,000 Barbershop 625,000 600,000 Seller of marine food products 1,875,000 2,000,000 Purchases of goods from VAT suppliers totaled P1,200,000 (related to VAT business if applicable). How much is the VAT payable or percentage tax for the year? Group of answer choices P318,000 P108,000 P93,000 P48,000
Required information [The following information applies to the questions displayed below.] Renee operates a proprietorship selling collectibles over the Web. This year, Renee's business reported revenue of $95.5 million and deducted $88.6 million in expenses and loss carryovers. Her business deductions included cost of goods sold of $48.5 million, sales commissions paid of $16.9 million, $10.5 million of interest paid on a mortgage, $10.7 million of depreciation, and $2 million deduction for a net operating loss carryover. a. What is Renee's adjusted taxable income for purposes of calculating the limitation on business interest expense? Note: Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 1 decimal place. Answer is complete but not entirely correct. $ 26.1 million Adjusted Taxable Income
Subject: Accounting
Excel Online Structured Activity: Personal taxes Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information: She received $85,000 in salary. . She received $12,500 of dividend income. . She received $4,900 of interest income on Home Depot bonds. . She received $24,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $5,700. • She received $12,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $6,300. • Mary receives one exemption ($4,000), and she has allowable itemized deductions of $7,500. These amounts will be deducted from her gross income to determine her taxable income. Assume that her tax rates are based on Table 3.5. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. X Open spreadsheet a. What is Mary's…
Vikram Bhai
Excel Online Structured Activity: Personal taxes Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information: -She received $108,000 in salary. -She received $17,500 of dividend income. -She received $7,000 of interest income on Home Depot bonds. -She received $24,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $5,200. -She received $11,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $5,700. -Mary receives one exemption ($4,000), and she has allowable itemized deductions of $7,500. These amounts will be deducted from her gross income to determine her taxable income. What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations. $. What is her marginal tax rate? Round your answer to 1 decimal place. What is her average tax rate? Round your answer to 2…
! Required information [The following information applies to the questions displayed below.] Renee operates a proprietorship selling collectibles over the Web. This year, Renee's business reported revenue of $95.5 million and deducted $88.6 million in expenses and loss carryovers. Her business deductions included cost of goods sold of $48.5 million, sales commissions paid of $16.9 million, $10.5 million of interest paid on a mortgage, $10.7 million of depreciation, and $2 million deduction for a net operating loss carryover. a. What is Renee's adjusted taxable income for purposes of calculating the limitation on business interest expense? Note: Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 1 decimal place. > Answer is complete but not entirely correct. $ 28.1 x million Adjusted Taxable Income
Hansaben
T Corp sold tangible personal property to its customers for $500. T Corp has nexus in the state where the sales tax rate is 5%. The company will make a journal entry for the transaction. Identify the accounts that the company will use. Account Debit Credit [Select ] ["Sales Tax Expense", "Revenue", "Sales Tax Payable", "Cash or Accounts Receivable"] $525 [Select ] ["Revenue", "Sales Tax Expense", "Cash or Accounts Receivable", "Sales Tax Payable"] [Select ] ["Cash or Accounts Receivable", "Sales Tax Payable", "Sales Tax Expense", "Revenue"] $25 $500
Analyze and journal the transactions: The Company is VAT- registered with 5% tax rate. 03-Jan Mr Y used his money to put up a business amounting 500,000 Dhs with a trade name of Amazing Company. 03-Jan The annual office rent contract is 150,000+5% which is agreed to be paid quarterly with a security deposit of 5,000 Dhs. 03-Jan Paid deposit for DEWA 2,000 & etisalat 500 in cash 03-Jan Paid security deposit for rent 5,000 dhs in cash. 04-Jan Pay Ejari amounting 219.50 AED in cash. 04-Jan Trade Licenses amounting 15,788 AED, was complited and granted, pay in cash. 04-Jan Open an account to Dubai Islamic Bank at 100,000 Dhs cash. 04-Jan Purchase a machinery ( with 5yrs useful life) to be used in business 50,000 Dhs+5% in cash from Greece Company. 05-Jan Paid the PRO who process the trade licenses 2,500 AED in cash. 05-Jan Purchase…
Compute for the Income Tax for the below data: MRS. MR. Gross Sales of the Business P4,000,000 Cost of Sales and expenses of the business 1,900,000 Gross Receipts from profession P300,000 Cost and Expenses in the practice of profession 120,000
Bluedragon is engaged in the following business activities for the year 2021: buying and selling of computer of computer parts with gross sales of P1,500,000 and as a freelance graphic artist with gross receipts of P1,000,000. Determine the business tax and the business tax due. * O Percentage tax 1%; P 25,000 O Percentage tax 3%; P 75,000 O VAT 12%; P 300,000 O VAT Exempt; P 0