How much is the income tax applicable on the transactions?
Q: Leo's townhouse has a market value of $310,000. The property in Leo's area is assessed at 40% of the…
A: The market value of townhouse is $310,000.The property is assessed at 40% of market value.
Q: South, Inc., earns book net income before tax of $400,000 in year 1. It acquires a depreciable asset…
A: The provision for income tax is a crucial component of company's financial statements. Under…
Q: S Corp. received cash of P200,000 that was included in revenues in 5 point: its 2002 financial…
A: Solution: Deferred tax liability to be reported = Future taxable amount * tax rate = 120000*32% =…
Q: USCO incurred $110,000 in interest exp $5,500,000. The tax book value of USC How much of the…
A: Given : Interest expense= $110000 Foreign source =5500000 US source Income = 55000000 The interest…
Q: Lamb Corp. has taxable income of $240,000 and depreciation expense for tax purposes of $50,000…
A: Deferred tax asset means the overpayment of the taxes in one period and deferred tax liability means…
Q: 7. West Corp. leased a building and received the P36,000 annual rental payment on June 15, 20x9. The…
A: Deferred tax assets and deferred tax liability arising on the differences, between taxable income…
Q: 37. How much of the Downdraft NOL can the combined corporation use? 38. Using the facts of the…
A: Downdraft has a net operating loss of $1,000,000 and no remaining assets Everhopeful Inc buys…
Q: This year Coast Corp. reported taxable income of $160,000 and received $30,000 of municipal…
A: option c is correct Explanation:Step 1:current e and p= taxable income+municipal…
Q: Ion Corporation has income tax expense/payable for book purposes of $200,000 and $250,000 for tax…
A: when there is taxable temporary difference arise between accounting profit and tax profit then…
Q: 1. During 2018, Axel Corporation purchases machinery (5-year property) for $120,000 and decides not…
A: Depreciation: The word "depreciation" refers to an accounting procedure that is used to spread the…
Q: Ayres Services acquired an asset for $200 million in 2021. The asset is depreciated for financial…
A: Differed Tax Liability: It is created when there are temporary differences book tax and actual…
Q: ABC Corp earns $300,000 of taxable income. $50,000 of that income is non-active rental income, and…
A: Taxation is a means through which the government levies a certain amount of money that needs to be…
Q: Piper Corp. had a taxable net income of P5,500,000 and total assets of P100 million. It had the…
A: We are taking itemized deductions instead of optional deduction of 40% of Net income. For interest…
Q: Firm UT sold realty to an unrelated buyer for $40,000 cash plus the buyer’s assumption of a $166,700…
A: Calculation of UT’s gain recognized on the sale and UT’s after-tax cash flow from thesale re…
Q: Required: Determine (a) the temporary book-tax difference for the depreciable asset and (b) the…
A: Deferred Tax Liability ;-A deferred tax liability refers to an accounting concept that arises due to…
Q: KNB sold real property to Firm P for $15,000 cash and Firm P’s assumption of the $85,000 mortgage on…
A: Answer 1: Amount to be realized on sale Amount Realized on sale= Cash amount+ Mortgage relief Amount…
Q: Lapwing Corp. reported a tax loss in 2022 of $2,130,000. If the enacted tax rate for 2020 and 1 2021…
A: Carryback is a practice of treating the current period's profit or loss as if it occurred in the…
Q: Pyri Flours, a sole proprietorship, owes $9,741 in taxes on taxable income of $61,509. If the firm…
A: Average rate of tax =
Q: USCo incurred $100,000 in interest expense for the current year. The tax book value of USCo’s assets…
A: Interest to be apportioned to foreign-source income = Interest Expense x % of Foreign source income
Q: KT Corporation reported pretax book income of $200,000,000. Tax depreciation exceeded book…
A: Book income is used by an organization to report their earnings to the shareholders and the users of…
Q: e. What is Mike's tax basis in the land he received from Tiger?
A: The shareholders tax basis when non-cash property is received would be equal to the fair value of…
Q: Ayres Services acquired an asset for $64 million in 2021. The asset is depreciated for financial…
A: Deferred tax liability is created when a tax obligation is accumulated in one financial year but…
Q: Pet Supply purchased fixed assets two years ago at a cost of $43,800. It no longer needs the assets,…
A: Depreciation is defined as the proportionate reduction in the value of an asset due to constant use…
Q: K's Warehouse has a market value of $900,000. The property in K's is assessed at 45% of the market…
A: The market value of the Warehouse is $900,000 The assessment rate is 45% The tax rate is $62.40 per…
Q: On October 26, 20x1, Entity A acquired 100% interest in Entity B for 2,800,000. On this date, Entity…
A:
Q: Canadian Colour Company (CCC) purchased GST-taxable supplies from Polaroid Canada worth $32,000.00…
A: During 2019, Canadian Color Company(CCC) purchased GST taxable supplies from Polaroid Canada =…
Q: Lento Incorporated owned machinery with a $30,000 initial cost basis. Accumulated book depreciation…
A: Given, Machinery initial cost basis = $30,000 Sale value = $13,000 Book depreciation= $12,000…
Q: Ayres Services acquired an asset for $116 million in 2018. The asset is depreciated for financial…
A: Ayres Services is using MACRS for tax purposes and straight-line depreciation for the asset. As the…
Q: The market value(P) of a property is $833,333.33 in a jurisdiction in which the assessment ratio is…
A: Market Value of Property= $ 833,333.33 Homestead Exemption = $50000 Current Budget= $ 9 Billion…
Q: he result of recording this allowance is
A: The correct answer is 3.
Q: Ms. Dika Kayaten has a 2 hectare agricultural land located in a province with a fair market value of…
A: We know that Ad valorem tax is also known as Property tax. In philippines if there is a unutilised…
Q: This term refers to an asset sold for more than its original value. Using taxable income, it is…
A: An asset sold for more than its original value is commonly referred to as a "Capital Gain." Capital…
Q: Mr. Sanchez, a sole proprietor, shows the following: Sales P800,000 Interest income, net of final…
A:
Q: What book–tax differences in year 1 and year 2 associated with its capital gains and losses would…
A: Capital Gain: A capital gain is any profit from the sale of any asset or an inventory. A capital…
Q: Ayres Services acquired an asset for $96 million in 2021. The asset is depreciated for financial…
A: Ayres Services Computation of Book tax differences and balance to be reported in a deferred tax…
Q: During 2021, Dud Co. purchases only one asset: equipment (7-year property) for $1,650,000. Dud takes…
A: Section 179 is a provision in the U.S. tax code that allows businesses to deduct the cost of certain…
Q: The chief financial officer of Laurent Ltd has asked you to calculate the taxable income and prepare…
A: Calculation of taxable income Particular Case 1 Case 2 Case 3 Case 4 Pre - tax accounting…
Q: Heron Company purchases commercial realty on November 13, 2002, for $650,000. Straight-line…
A: Answer: Cost of Asset = $650,000 Depreciation = $287,492 Book Value = $362,508 Asset Sold for =…
Q: KNB sold real property to Firm P for $15,000 cash and Firm P’s assumption of the $85,000 mortgage on…
A: Calculation of KNB’s amount realized on the sale: KNB’s amount realized on the sale = Cash + Relief…
Q: repare a calculation of taxable income for the following scenarios:
A:
Q: Ayres Services acquired an asset for $144 million in 2021. The asset is depreciated for financial…
A: The temporary difference is the difference between the carrying value of the liability or assets in…
Q: The finance director of Hyden Ltd is unsure about the deferred tax implications for two of the items…
A: Prepaid insurance, tax-deductible when paid. This would be expensed for accounting purposes later…
Q: Trey, Inc. reports a taxable loss of 5210.000 for 2022. Its taxable income for the last two years…
A: As Per TCJA, NOL's for tax years beginning in 2018 and onwards may be carry-forward indefinitely but…
Q: Tiger Corporation reported taxable income of $500,000 from operations this year. The company paid…
A: What amount of dividend income does Mike report as a result of the distribution:- Dividend income…
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- Anderson disposes a vacant lot for P3,000,000. The lot has an Assessor's fair value of P2,800,000, a zonal value of P3,200,000, and an appraisal value of P3,500,000. What is the capital gains tax? P 0 P180,000 P192,000 P210,000During the year, JK Corporation has gross sales of P20,000,000 and operating expenses of P2,000,000, inclusive of representation expense amounting to P300,000 with proper documentation. How much is the allowable regular itemized deductions? A foreign corporation sold a condominium unit to Mr. Mauricio for P10 million which it acquired at a cost of P5 million. The fair market value of the said property per tax declaration was P12 million while its zonal value was P15 million. How much is the capital gains tax?An individual, who is a real estate dealer, sold a residential lot in Quezon City at a gain of P100,000.00 (selling price of P900,000.00 and cost is P800,00.00). The sale is subject to income tax as follows: a) 6% capital gains tax on the gain; b) 6% capital gains tax on the gross selling price of fair market value, whichever is higher; c) Ordinary income tax at the graduated rates of net taxable income; d) 8 % income tax on net taxable income.
- Garcia disposed of his principal residence for P2,000,000 and immediately acquired a new one for P1,800,000. The old residence was acquired for P1,000,000 and had a fair market value of P2,500,000 on the date of sale. Compute the capital gains tax on the sale. * Zero 12,000 15,000 150,00010. Sicilian Corporation purchased a condominium unit for P2,000,000. The zonal value is P2.500,000. The title to the property was transferred in the name of Lito. the company's finance manager. How much is the fringe benefit tax due? a. P 1,076,923 b. 269,231 d. C. 1,346,154 None CS Scanned with CamScannerDelta Corporation bought a condominium unit for P6,000,0000. The fair market value of the property per tax declaration is P6,800,000 while the zonal value is P6,500,000. It was transferred in the name of Pedro, one of its executives, for a lower consideration amounting to P5,800,000. How much is the fringe benefits tax?
- KNB sold real property to Firm P for $15,000 cash and Firm P’s assumption of the$85,000 mortgage on the property.Required: What is KNB’s amount realized on the sale?b. Compute KNB’s after-tax cash flow from the sale if its adjusted basis in the realproperty is $40,000 and its marginal tax rate is 35 percent.A corporation sold a parcel of land used in its operation abroad. The selling price is P3,000,000. The property was acquired five years ago at P1,500,000. What is the amount of final income tax on the above transactions? Select the correct response: 180,000 90,000 3,000,000 ZeroKNB sold real property to Firm P for $15,000 cash and Firm P’s assumption of the $85,000 mortgage on the property. Required: What is KNB’s amount realized on sale? Compute KNB’s after-tax cash flow from the sale if its adjusted basis in the real property is $40,000 and its marginal tax rate is 35 percent.
- H6. A business sells real property for $950,000, with $600,000 of this amount being allocated to the building and the remaining $350,000 allocated to the land. The building, the only asset in its Class, had a capital cost of $800,000 and a UCC of $650,000. The adjusted cost base of the land was $250,000. What are the tax consequences of this disposition? A capital gain of $50,000 and a terminal loss of $50,000 © A capital gain of $100,000 and a capital loss of $50,000 C A capital gain of $50,000 and a terminal loss of nil © A capital gain of $100,000 and a terminal loss of $50,000 Please give accurate response Show proper step by step calculationPuerto Princesa Company sold its parking lot for P2,000,000. The lot has a zonal value of P2,500,000 and appraisal value of P1,800,000. The capital gains tax on the sale of the lot is a.P0 b.P120,000 c.P150,000 d.P108,0005. Uste company owns a condominium unit in "The One Residences" which is near the factory and the plant' s administrative building. To make it convenient to its executive, it allowed the latter to use the said property as his residence. The zonal value of the property is P32 000 000 while its fair market value as shown in its current real property tax declaration amounts to P25 000 000. How much is the fringe benefits expense? How much is the fringe benefit tax expense? 2/2