Alpesh Jorgensen High Tech Incorporated is a calendar-year, accrual-method taxpayer. At the end of year 1, Jorgensen accruedand deducted the following bonuses for certain employees for financial accounting purposes.•$58,800 for Ken.•$44,100 for Jayne.•$29,400 for Jill.$14,700 for Justin.How much of the accrued bonuses can Jorgensen deduct in year 1 under the following alternative scenarios?Note: Leave no answer blank. Enter zero if applicable.b. Jorgensen paid the bonuses to the employees on April 1 of year 2.× Answer is complete but not entirely correct.Deductible accrued bonuses Year 1$ 147,000 ×

Deductible accrued bonuses Year 1 = 0.00 Description Deductible in Y1 Deductible in Y2 Ken…

Answered: Jorgensen High Tech Incorporated is a…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 42P

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How do the all events and economic performance requirements apply to the following transactions by an accrual basis taxpayer? a. The company guarantees its products for six months. At the end of 2019, customers had made valid claims for 600,000 that were not paid until 2020. Also, the company estimates that another 400,000 in claims from 2019 sales will be filed and paid in 2020. b. The accrual basis taxpayer reported 200,000 in corporate taxable income for 2019. The state income tax rate was 6%. The corporation paid 7,000 in estimated state income taxes in 2019 and paid 2,000 on 2018 state income taxes when it filed its 2018 state income tax return in March 2019. The company filed its 2019 state income tax return in March 2020 and paid the remaining 5,000 of its 2019 state income tax liability. c. An employee was involved in an accident while making a sales call. The company paid the injured victim 15,000 in 2019 and agreed to pay the victim 15,000 a year for the next nine years.
Troy, a cash basis taxpayer, is employed by Eagle Corporation, also a cash basis taxpayer. Tray is a full-time employee of the corporation and receives a salary of 60,000 per year. He also receives a bonus equal to 10% of all collections from diems he serviced during the year. Determine the tax consequences of the following events to the corporation and to Troy: a. On December 31, 2019, Troy was visiting a customer. The customer gave Troy a 10,000 check payable to the corporation for appraisal services Troy performed during 2019. Troy did not deliver the check to the corporation until January 2020. b. The facts are the same as in part (a), except that the corporation is an accrual basis taxpayer and Troy deposited the check on December 31, but the bank did not add the deposit to the corporations account until January 2020. c. The facts are the same as in part (a), except that the customer told Troy to hold the check until January 2020 when the customer could make a bank deposit that would cover the check.
Davis, Inc. paid wages to its employees during the year as follows: a. How much of the total payroll is exempt from the FICA rate of 8%? b. How much of the total payroll is exempt from federal and state unemployment taxes? c. How much of the total payroll is exempt from federal income tax withholding?
In each of the following problems, identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you identify. Ariel has worked for Sander Corporation for 30 years. Sander has a pension plan in which it matches employee contributions by up to 5 percent of the employees salary. Ariel, who is single, retires during the current year when she is 66 years old. Her pension plan contains payments and earnings of 300,000, half of which are attributable to payments made by Ariel and half attributable to payments made by Sander. Under the plan, Ariel is to receive 2,000 per month until she dies.
XYZ, Inc. is an accrual basis taxpayer with a calendar year end. XYZ received $72,000 cash on August 1, Year 1 from a tenant for a 24-month lease on a warehouse owned by XYZ. How much rental revenue from this transaction will XYZ recognize on its Year 1 tax return? How much rental revenue will XYZ recognize from this transaction on its income statement for Year 1 prepared in accordance with GAAP? How much rental revenue from this transaction will XYZ recognize on its Year 2 tax return? How much rental revenue will XYZ recognize from this transaction on its income statement for Year 2 prepared in accordance with GAAP? Is the Year 1 book-to-tax difference favorable or unfavorable?
Compute for the tax due of the following individuals using the RA 10963 tax table. Show computations. 1. An employee with annual salary of P500,000, annual allowable deductions of P28,000 and bonus of P100,000 for the year.
Bob Brain files a single tax return and decides to itemize his deductions. Bob's income for the year consists of $75,000 of salary, $3,000 long-term capital gain, and $1,500 interest income. Bob's expenses for the year consists of $800 investment advice fees, $700 unreimbursed employee business expenses (a miscellaneous itemized deduction), and $250 tax return preparation fees. What is Bob's actual deduction for miscellaneous itemized deductions? A. $0 bobs investment expenses do not exceed 2% of the agi floor. B. 1590 C. 1500 D. None of the choices are correct.
Subject: Accounting
A taxpayer works for a single employer during the year (TY2018) and discovers that they withheld a total of $1,356 in VPDI. What is the amount of the credit that they can claim for this excess on their State return? (Look at the explanation as much as the answer) $0 - They only had a single employer. $0 - That is below the maximum amount and there is no excess. $0 - VPDI has no upper limit, unlike SDI. $206.33 - This is the excess over the $1,149.67 maximum.
Eva received $73,000 in compensation payments from JAZZ Corp. during 2019. Eva incurred $16,000 in business expenses relating to her work for JAZZ Corp. JAZZ did not reimburse Eva for any of these expenses. Eva is single and she deducts a standard deduction of $12,200. Based on these facts answer the following questions: Use Tax Rate Schedule for reference. b. Assume that Eva is considered to be an employee. What is her regular income tax liability for the year? Regular tax liability
a. Assume that Eva is concidered to be an employee. What amount of FICA taxes is she required to pay for the year? b. What is her regular income tax liability for the year? c. Assume that Eva is concidered self-employed contractor. What is her self-employment tax liability and additional medicare tax liability for the year? d. Assume Eva is concidered to be self employed contractor. What is her regular tax liability for the year?
For each of the following individuals, calculate the applicable self-employment tax. Assume that each individual files tax returns under single status. Remember, the IRS instructs employers to collect additional Medicare tax on all employee earnings more than $200,000 in a single year without regard to filing status. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. 1: Allison Wilson earns net self-employment income of $74,200. She does not work a second job. Self-Employment tax = $ 2: Martin Hughes earns net self-employment income of $157,100. He works a second job from which he receives FICA taxable earnings of $110,200. Self-Employment tax = $ 3: Elisa Grant earns net self-employment income of $198,000. She works a second job from which she receives FICA taxable earnings of $83,000. Self-Employment tax = $

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