Harold is a resident Citizen,vat tax payer. taxable period:2020 Gross sales php 5,000,000 other operating income 200,000 non-operating income 100,000 cost of sales 2,000,000 operating expenses 1,000,000 Compute for the 8% optimal tax. show computation 396,000 404,000 424,000 0

Harold is a resident Citizen,vat tax payer. taxable period:2020 Gross sales php 5,000,000 other operating income 200,000 non-operating income 100,000 cost of sales 2,000,000 operating expenses 1,000,000 Compute for the 8% optimal tax. show computation 396,000 404,000 424,000 0

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: Use the 2021 marginal tax rates

A: As per IRS 2021 standard deduction for single filer is $ 12,550. As per…

Q: Firm E must choose between two alternative transactions. Transaction 1 requires a $13,250 cash…

A: As per tax rules, certain expenses incurred are deductible from total income for the purpose of…

Q: A certain state uses the following progressive tax rate for calculating individual income tax:…

A: tax on first 2000 = 2% of 2000 = 40 tax on next 7000 = 5% of 7000 = 350

Q: During the year, Dan Davis, a single taxpayer, pays $2,200 of interest on a qualified student loan.…

A: 8) Answer is B 2200 You can deduct up to $2,500 on student loan interest deduction if your AGI Does…

Q: This year Bill received a $900 refund of state income taxes that he paid last year. Last year Bill…

A: How much of the refund, if any, must Bill include in gross income:- OPTION B:- $ 900 is the right…

Q: Oakdale Fashions, Inc. had $245.000 in 2018 taxable income. Using the tax schedule in Table 2.3 to…

A: Income slab Tax amount Tax till $100,000 $22,250 $100,001 - $245,000 $145,000 x 39% = $56,550…

Q: Green corporation has the following income and expense items for Year 1. Sales revenue (all cash):…

A: The determination of effective tax rate (ETR) is shown hereunder : Income items : Sales Revenue (…

Q: The income tax T owed in a certain state is a function of the taxable income I, both measured in…

A: Given , The equation of tax is as follows: T=0.13I-300…

Q: eductions to determine net income $ 11,840 Federal income tax withheld $ 6,964 Total…

A: Calculate Ann's net income:income = Total income (line 23600) - Deductions $50,650 - $11,840 =…

Q: Eccentricity, Incorporated had $300,000 in 2018 taxable income. Using the tax schedule from Table…

A: Eccentricity taxable Income = $300,000 Total Income tax = 22,250 + ( 300,000 - 100,000)*39% = $…

Q: Jackie forecasts the following for the taxable year 2023.

A: In Phillipines there is a system of optional standard deduction for…

Q: The Smith household's annual income is $250,000. Based on the U.S. federal tax rates below,…

A: Taxable Income Rate of Tax 0-9,700 10 9,700-39,475 12 39,475-84,200 22 84,200-160,725 24…

Q: A certain state uses the following progressive tax rate for calculating individual income tax:…

A: Progressive tax is a tax in which tax rate increases as the base rate amount increases. Here the tax…

Q: Explain and calculate the differences resulting from a $1,000 tax credit versus a $1,000 tax…

A: Answer:- Taxable income:- The amount of the gross income that is used to determine how much tax you…

Q: Using the tax formula calculate the taxpayer’s AGI for 2021. The taxpayer is single. Wages $50,000…

A: AGI is Adjusted gross income. The gross income after all the eligible tax deductions has been made…

Q: Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues Expenses…

A: Required changes in Deferred tax liability / Assets = Ending balances required - Beginning…

Q: Use the table to the right to calculate the federal income tax due for a taxable income of $87,000…

A: Income tax is the amount of tax which is to be paid on the income earned by the taxpayer during the…

Q: O O O O b. Taxable income of $120,000. (Do not round intermediary calculations. Only round the…

A: The Federal income tax is a tax imposed by the United States federal government on individuals and…

Q: Sam's Year 2 taxable income was $175,000 with a corresponding tax liability of $30,000. For Year 3,…

A: In order to avoid a penalty for underpayment of estimated tax, Sam should pay :At least 90% of the…

Q: For taxable income of $0-$50,000, the rate is 15 percent. For incomes of 450,001-$75,000 the base…

A: Tax on first $50,000 = $7,500 Tax rate on balance amount = 25% Tax on balance amount = ($68,000 -…

Q: Ms. V is the Sole proprietress of VVV Company. She has the following business income in 2020.…

A: Ms. V is the sole proprietress of VVV company. In 2020, Standard deduction = 40% Gross sales =…

Q: How much is the income tax due assuming the use of the 8% optional tax?

A: Optional tax rate is the optional which the tax payer can choose to be taxed on that rate when the…

Q: Company N will receive $55,000 of taxable revenue from a client. Use Appendix A and Appendix B.…

A: Net Present Value (NPV) is a capital budgeting technique that uses a discount rate to bring all the…

Q: In 2020, Appalachian Airlines had taxable income of -$3,000,000. In 2021, the company has taxable…

A: The objective of the question is to calculate the tax payable by Appalachian Airlines in 2021,…

Q: 6. Suppose that during 2025, tax legislation was passed that will lower Arndt's effective tax rate…

A: Essentially, pretax income is used as a starting point to estimate the amount of taxes a company…

Q: Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): 2025 $ 1,024 844 $ 180…

A: Required changes in Deferred tax liability / Assets = Ending balances required - Beginning…

Q: Maria is a resident Citizen, non vat tax payer. taxable period:2020 Gross sales php 2,500,000…

A: Optimal Tax - It is the amount of tax calculation for the maximum income earned during the year to…

Q: 7. Consider the following income tax rate structure. Rate Income bracket 5% Up to $50,000 + 10%…

A: Income tax liability is the amount of tax that an individual or entity owes to the government based…

Q: Garrison Shops had a SUTA tax rate of 3.7%. The state's taxable limit was $8,000 of each employee's…

A: Tax is the amount which is to be paid by an individual or entity on the taxable income.

Q: The 2009 U.S. tax rates for a single person are shown below f taxable icome is over- But not over-…

A: Exemptions and deductions both reduces the taxable income, but are not considered the same thing. A…

Q: dollar as needed. a single male, no dependents. Gross income: $84,000 pute the tax owed by the…

A: The term "tax owed" refers to the amount of money that a taxpayer is legally obligated to pay to the…

Q: Now consider another hypothetical tax code. Assume the tax rate on the first $15,000 of taxable…

A: Income Tax - Taxes at the federal and state levels are imposed on the income of people, businesses,…

Q: Country A has a tax rate of 5% on the first $20,000 of taxable income, then 20% on the next $30,000,…

A: Taxation According to IRS while computing net taxable amount to taken up the deduction in proper…

Q: I need help solving this problem Daniel Simmons arrived at the following tax information:…

A: Solution- Given that Gross salary =$62250 Interest earning=$75

Q: accounting income (income sta eincome (tax return) : 25% s each year include $30 million fro e…

A: Taxable income refers to the sum value of money gained by an entity on which the authorized…

Q: If you would have to pay $5,000 in taxes on $50,000 taxable income and $8,000 in taxes on $60,000…

A: A tax is an amount of money that is owed by the public to the government. Taxes are levied by the…

Q: A single taxpayer has the following information for 2020: AGI State income taxes State sales tax…

A: Introduction: A taxpayer is any individual or corporate organization that pays taxes to the federal,…

Q: Garrison Shops had a SUTA tax rate of 3.7%. The state's taxable limit was $8,000 of each employee's…

A: When a company records the compensation of its employees, such type of accounting is known as…

Q: Use the following information to calculate the federal average tax rate (ignore tax credits) for a…

A: It is the rate at which the tax is payable on the total income on the average basis. The average tax…

Q: 3. Compute the deferred tax amounts that should be reported on the 2024 balance sheet. Note: Enter…

A: To compute the deferred tax amounts reported on the 2024 balance sheet, we need to analyze the…

Q: Alfred Morneau earned gross pay of $640. Each period he makes a 401(k) contribution of 7% of gross…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Your answer is partially correct. The pretax financial income (or loss) figures for Marin Company…

A: A company's balance statement shows deferred tax assets, which can strengthen its position…

Q: Deductions from Adjusted Gross Income, Calculating Tax Liability (LO. 3, 5) Hongtao is single and…

A: a ) tax liability in 2020 = 10% x $9875 + 12% x ($40125- $9875) +22% x(70150-40125) = £987.5 +…

Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

Harold is a resident Citizen,vat tax payer.

taxable period:2020
Gross sales	php 5,000,000
other operating income	200,000
non-operating income	100,000
cost of sales	2,000,000
operating expenses	1,000,000

Compute for the 8% optimal tax. show computation

396,000
404,000
424,000
0

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 by step

Solved in 2 steps

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

A single person with taxable income of $36090 will have the first $9525 of that income taxed at 10%. Determine the taxes owed on just the first $9525.
Suppose there is a 10% tax on the first $20,000 of taxable income, a 20% tax on taxable income above $20,000 until $35,000, and a 30% tax on all taxable income above $35,000. There is a $10,000 exemption per person in a family. What is the marginal tax rate for a single mother making $45,000 who has three children? a)20% b)10% c)30% d)40%
In 2010, Garner Grocers had taxable income of -$2,000,000. The corporate tax rate is 25%. Assume that the company takes full advantage of the Tax Code’s carry-forward provision. In 2021, Garner has taxable income of $1,000,000. What is the amount of taxes the company paid in 2021? a. $20,000 b. $8,000 c. $0 d. $90,000 e. $586,500
Select the best answer to the tax credit and corporate and partnership income tax issues. Mamey, Inc. had taxable income of $138,500 in 2020. What is the income tax expense for the year 2020? a. $29,085 b. $25,623 c. $34,625 d. $27,700 Which of the following items might not generally appear on the Schedule M-1 reconciliation a. Exempt interest income b. Meal expenses c. Office material expenses d. Federal income tax expense Cubey Industries, Inc. has a net book income of $76,100. For the year it had an income tax expense of $18,900. During the year Cubey received pandemic exempt income of $5,000 and had total food expense of $1,000 on books. What is the result of the Schedule M-1 reconciliation per Schedule line 10. a. $81,600 b. $90,500 c. $95,500 d. $95,000 The net operating losses (NOLs) that a corporation has available to be used against taxable income for the year 2020 are subject to a. A limitation of 90% of taxable income b.…
In 2020, Garner Grocers had taxable income of -$2,000,000. The corporate tax rate is 25%. Assume that the company takes full advantage of the Tax Code's carry-forward provision. In 2021, Garner has taxable income of $1,000,000. What is the amount of taxes the company paid in 2021? O a. $500,000 Ob. $750,000 O c. $1,500,000 O d. $0 O e. $250,000
Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): 2021 2022 Revenues $ 888 $ 980 Expenses 760 800 Pretax accounting income (income statement) $ 128 $ 180 Taxable income (tax return) $ 116 $ 200 Tax rate: 25% Expenses each year include $30 million from a two-year casualty insurance policy purchased in 2021 for $60 million. The cost is tax deductible in 2021. Expenses include $2 million insurance premiums each year for life insurance on key executives. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2021 and 2022 were $33 million and $35 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $25 million ($10 million collected in 2020 but not recognized as revenue until 2021) and $33 million, respectively. Hint: View this as two temporary differences—one reversing in 2021; one originating in 2021. 2021…
In 2020, Appalachian Airlines had taxable income of -$3,000,000. In 2021, the company has taxable income of $5,000,000 and its corporate tax rate is 25%. Assume that the company takes full advantage of the Tax Code's carry-forward provision. How much will the company pay in taxes in 2021? O a. $1,500,000 O b. $750,000 O c. $0 O d. $1,250,000 Oe. $500,000
Marvel Corporation (a C-corporation) has the following operating profit for 2019 through 2021. Year 2019 2020 2021 Operating profit ($60,000) $30,000 $50,000 Assume the marginal tax rate is flat 21%. (1) Discuss the tax consequences in year 2019, 2020, and 2021, respectively. (2) Why does the tax law allow business taxpayers to carry the net operating loss (NOL)?
A single taxpayer provided the following information: Salary $45,000 Interest Income from a state bond $5,000 Allowable itemized deductions $8,000 What is taxable income? Hint, look at the tax formula. $17,300 $31,150 $37,000 $37,050
In 2020, Garner Grocers had taxable income of -$2,000,000. The corporate tax rate is 25%. Assume that the company takes full advantage of the Tax Code's carry-forward provision. In 2021, Garner has taxable income of $1,000,000. What is the amount of taxes the company paid in 2021? a. $500,000 b. $0 c. $250,000 d. $1,500,000 e. $750,000
If the tax rates are 15% on the first $50,000 of taxable income, and 20% on the next $25,000, and 25% on the next $25,000, what is the tax liability for an individual with $80,000 of taxable income, what is the marginal tax rate, and what is the average tax rate ? a. $10,250, 15%, and 20% b. $25,122, 22%, and 16% c. $11,345, 15%, and 34% d. $13,750, 25%, and 17.19%
Ashley, who is married to Anne and age 30, provides you with the following information from their financial records for 2020. Regular income tax liability $24,668 AMT net positive adjustments 40,000 AMT preferences 10,000 Taxable income 150,400 Calculate their tentative minimum tax amount for 2020 if they file a joint return. a. $0 b. $2,185 c. $22,620 d. $24,360 e. $34,300