Mr. H retired from his job after 20 years of service. He joined the company at the age of 21 and was promoted from an accounting clerk to VP Finance. He was paid P3,500,000 total retirement pay from the employer's contributory pension plan which was duly registered with the BIR. Out of the total proceeds, Mr. H contributed P900,000. This was Mr. H's first retirement from employment How much is excluded from gross income?

Mr. H retired from his job after 20 years of service. He joined the company at the age of 21 and was promoted from an accounting clerk to VP Finance. He was paid P3,500,000 total retirement pay from the employer's contributory pension plan which was duly registered with the BIR. Out of the total proceeds, Mr. H contributed P900,000. This was Mr. H's first retirement from employment How much is excluded from gross income?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A retired 78-year-old individual is unmarried, has no dependents, and holds a part- time job that pays $3,000 per year. The individual also has corporate bonds that pay interest income each year. What is the minimum amount of interest the corporate bonds must pay for this individual to be required to file income taxes for 2021? $9,551 O $11,251 O $12,551 $21,801
Janice earns $85,000 working as an administrative assistant in a public company based in New York. The company provides a matching contribution in the 401(k) plan of 50% up to a maximum contribution of 4% of compensation. Her 401(k) plan account had $20,000 in it at the beginning of the year. She contributed $5,000 to the plan this year and the employer made the matching contribution before year end. The ending balance of the account is $30,000. What is her return on her investments this year for the 401(k) account? A. 8.8%. B. 9.9%. C. 12.5%. D. 25%.
G11.
Hw.83.
Employee has worked for Employers incorporated business for several years at a salary of 80K per year. Another company is attempting to hire Employee, but Employer persuades Employee to agree to stay for at least 2 more years by giving Employee 2% of the company’s stock, which is worth $100K, and by giving Employees spouse a new car worth $30K. How much income does Employee realize from these transactions?
Edwards Company just hired another employee - Jane. The Edwards Company provides supplemental retirement benefits to its employees realizing the insufficiency of the Social Security benefits for a comfortable retirement life. Edwards has asked you to perform the necessary computations pertaining to the retirement benefits for Jane. Jane's current salary is $40,000. Jane will be entitled to this supplementary retirement benefits after 20 years of work- the start of the 21st year. The retirement plan will last for 25 years. Per company practices. Jane will be granted with a year-end salary increase of 2% per year effective Jan. 1st of each year that she works. The amount of annual retirement benefit is going to be 45% of Jane's salary right before the start of the retirement and will be paid at the start of each year, Any invested funds for pension will earn 4% compounded annually. Click here to use Excel. Compute Jane's annual retirement benefit Example of Answer: 4000.20 Two decimal…
A. X (25 Yrs) is a salaried employee of a public sector company in Mumbai. He has submitted following details for the year ending 2020-21: Basic pay: Rs. 200,000; dearness pay: Rs.1,75,000 (40 percent for retirement benefits); HRA: Rs. 15,000; employer’s contribution to provident fund: Rs. 24,000; besides the employer provides him a car (1800CC) for official and private purpose. Employer has provided him a credit card for which his employer has paid bill of Rs. 200,000(50 percent is used for official purpose). His employer has also sold a music system for Rs.2000 to him (Cost of music system to employer when it was purchased in 2009 was Rs. 20,000). X owns a small house in Mumbai, use for self-occupation details of which are: municipal valuation: Rs.2,30,000; standard rent: Rs.2,50,000; during the previous year he paid interest of Rs. 20,000 on house loan taken in 2015. He also received interest from deposits in saving bank account Rs. 25,000 and dividend from an Indian company Rs.…
Rodrigo works as a self-employed salesperson. His job requires that he spend most of his time outside the office calling on customers. In addition, to supplement his income, he works 1 night a week and on weekends as a waiter at an exclusive seafood restaurant in the city. During the year, he keeps the following record of his travel: Miles Home to office 850 Office to home 425 Office to restaurant 300 Restaurant to home 1,200 Home to restaurant 725 Office to custormers' office 7,100 Customers' office to restaurant 400 Total miles 11,000 If he uses the standard mileage rate, what amount can she deduct as a business automobile expense? Oa. S4255.00 Ob. $431250 Oc. S4,082 50 Od. $5,175.00 Oe, S4,485.00
Benito has $5,486 carry-forward balance from unused RRSP contribution room in the prior year. He had a salary income of $62,867 last year. The maximum contribution for the year is the lesser of $26,500 or 18% of prior year's earned income. He and his employer each contributed 3% of his salary to a defined contribution pension plan. Investment income totaled $6,500 from interest and dividends in the prior year. How much could Benito contribute to his RRSP this year?
7
Ms. Berry is employed as an Accounts Manager in the Jamaican company ADM Limited. In 2022, she earned a monthly salary of $820,000.00. She also sits on the board of directors of FHC Company Limited where she receives director’s fees of $7,500.00 per month. She contributes 10% of her gross emoluments to the Superannuation Pension Plan. Under the Jamaican Labour Laws, every employee is expected to contribute 3% of their gross emoluments/ salaries up to a maximum of $5,000,000.00 p.a. Calculate Ms. Berry’s MONTHLY tax deduction under the PAYE system if the annual income tax threshold $1,500,096 p.a Persons with monthly income below$500,000 pay tax at 25% and those above pays tax at 30%. The monthly PAYE is: Question 34Answer a. $163648 b. $189,748 c. $153,061 d. $162,748
6