Mr. Lim ran for a government position during the country’s 2019 elections. He received campaign fund donations in cash and in-kind amounting to 100,000,000. He spent a total of 75,000,000 for campaign related expenses. a. What are the type of taxes involved in this scenario? Explain your answer. b. Assume that the excess funds were remitted back to the donor, how much is the total tax due of Mr. Lim for the taxable year 2019? c. Assume that the excess funds were kept by Mr. Lim, how much is the total tax due of Mr. Lim for the taxable year 2019?
Mr. Lim ran for a government position during the country’s 2019 elections. He received campaign fund donations in cash and in-kind amounting to 100,000,000. He spent a total of 75,000,000 for campaign related expenses. a. What are the type of taxes involved in this scenario? Explain your answer. b. Assume that the excess funds were remitted back to the donor, how much is the total tax due of Mr. Lim for the taxable year 2019? c. Assume that the excess funds were kept by Mr. Lim, how much is the total tax due of Mr. Lim for the taxable year 2019?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Mr. Lim ran for a government position during the country’s 2019 elections. He received campaign
fund donations in cash and in-kind amounting to 100,000,000. He spent a total of 75,000,000 for
campaign related expenses.
a. What are the type of taxes involved in this scenario? Explain your answer.
b. Assume that the excess funds were remitted back to the donor, how much is the total tax due
of Mr. Lim for the taxable year 2019?
c. Assume that the excess funds were kept by Mr. Lim, how much is the total tax due of Mr. Lim
for the taxable year 2019?
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