Mr. Fara, a representative of a domestic firm, disclosed the following information for 2019: The total revenue from the business is P 800,000. The maximum amount of business costs that can be deducted is P 600,000. (excluding contributions) Contributions to charity: P50,000 to the government for key activities P 60,000 to the government for public use (non-priority). 15,000 pesos to the church What is the net income that is

Mr. Fara, a representative of a domestic firm, disclosed the following information for 2019: The total revenue from the business is P 800,000. The maximum amount of business costs that can be deducted is P 600,000. (excluding contributions) Contributions to charity: P50,000 to the government for key activities P 60,000 to the government for public use (non-priority). 15,000 pesos to the church What is the net income that is

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 44P

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The information for 2019 was disclosed by Mr. Asta, a resident citizen:800,000 pesos is the business's gross revenue. A maximum of P 600,000 in business costs may be deducted (excluding contributions) Contributions to charities: To the government for P 50,000 in urgent activities P60,000 to the government for non-priority public reasons 15,000 P. to the church What is the net income taxable?
K Ltd. paid an employee a tax-free travel allowance of $7, 700 based on 7,000 kilometres of out-of - town driving in 2023. What amount can K deduct for tax purposes? Please can you solve this based on the CRA thank you!
Maryanne had gross income of $100,000 in 2022. In 2022, the Maryanne paid the following expenses: Federal income taxes: $11,884 State & local income taxes: $9,756 Sales tax: $1,732 HSA contributions: $2,600 Property taxes on principal residence: $10,046 Mortgage interest on principal residence acquisition indebtedness (mortgage principal is $500,000): $9,793 What is the amount of Maryanne’s total itemized deductions for 2022?
Export-Import Corporation paid the amount of P13,000.00 to Hernando’s Hideaway Resort Corporation for the vacation expenses of Mr. Leandro Lopez, its warehouse manager, in April 2020. The journal entry to record the fringe benefit expense and fringe benefit tax expense is: a. Debits: Fringe benefit expense, P13,000.00; Fringe benefit tax expense, P7,000.00. Credits: Cash, P13,000.00; Fringe benefit tax payable, P7,000.00. b. Debits: Fringe benefit expense, P20,000.00; Fringe benefit tax expense, P7,000.00. Credits: Cash, P20,000.00; Fringe benefit tax payable, P7,000.00. c. Debits: Fringe benefit expense, P13,000.00; Fringe benefit tax expense, P7,000.00. Credits: Fringe benefit expense payable, P13,000.00; Fringe benefit tax payable, P7,000.00. d. Debits: Fringe benefit expense, P13,000.00; Fringe benefit tax expense, P7,000.00. Credit: Cash, P20,000.00.
In 2021, Archibald Corporation incurred the following expenses in connection with the product of its business: P100,000 worth of plane tickets and hotel bills of its employees who were sent to business seminars; P200,000 transportation allowances of its officers from home to office and vice versa as part of their employment contract; P80,000 transportation expenses of messengers from office to several clients; P20,000 special assessment. Determine the allowable expenses that could be deducted by Archibald Corporation from its gross income.
For 2020, Garden Corporation has 800.000 of gross profit from its sales and $410,000 of operating expenses. Garden makes $90,000 of cash charitable contributions during 2020 Inot inchuded in the other amounts). How much of these contributions can it deduct for 2020? (Note that this is for 2020, ie, 25%) O $75.000 O $97.500 $22.500 O $90.000
On January 1, 2021, Robin Cormpany received a grant of P1,500,000 frorm the government to subsidize tuition fees for a period of 5 years. On January 1, 2023, the entity violated certain conditions attached to the grant, and therefore had to repay such grant to the government. What amount should be recognized as loss resulting from the repayment of the grant in 2023?
A non-profit organization received S80,000 as the entrance fee of a new member. If 10% of the fee has to be capitalized, what is the amount of fee needs to be shown in the income and expenditure account? O a. S72,000 O b. $82,000 O . S80,000 O d. $62,000
For 2022, Jackie reported the following in relation to the primary income of the business operations: [Refer to the figure]. Jackie also provided the following information: Excess MCIT for 2021 was P20,000. Net capital loss for 2021 was P20,000. Gross sales is net of the discounts given to senior citizens. Quarterly gross sales to them is P250,000. During the fourth quarter, there was a sale of a movable capital asset held for two years resulting to a gain of P100,000. Assuming Jackie is a domestic corporation, what amount should be reflected on Schedule 2 Item 12 on the first quarterly return? A. 22,000 B. 23,000 C. 11,500 D. 11,000
The government charges OMR 400,000 general property taxes for the year 2019. The amount collected till the year end accounted to OMR 360,000. It expects to collect the balance shortly after year-end. These taxes are accounted as unrestricted resources to be used for financing of operating activities that would contribute towards public welfare. During the year, the government incurred OMR 330,000 in general operating expenditures of which it actually paid OMR 310,000. To cover up the capital project fund deficit of 2018, the government had borrowed funds by issuing long term notes amounting to RO 50,000. A debt service fund was created and an amount of OMR 40,000 is transferred from the general fund to service the debt. Based on the above case, which among the following statements are true? a. The unrestricted resources are accounted in the General fund and the cash balance in the fund statement amounts to RO OMR 10,000 b. The unrestricted resources are accounted in the Debt service…
2. Mr Asta, domestic corporation, revealed the following data for 2019: Gross income from business is P 800,000 Business expenses allowed for deduction is P 600,000 (excluding contributions) Charitable contributions: To Govt for priority activities of P 50,000 To Govt for public purposes (not priority) of P 60,000 To church of P 15,000 What is the taxable net income?
K Ltd. paid an employee a tax-free travel allowance of $5,300 based on 9,000 kilometres of out-of-town driving in 2022. What amount can K deduct for tax purposes?