Poly received a TV set from her employer Alfa Mart Company, a business entity engaged in the distribution of home appliances, in exchange for payment of her two-month salary amounting to Php. 50,000.00. The merchandise, with a prevailing market price of Php. 55,000, cost the company Php. 25,000.00. Determine Poly's taxable compensation income.

Poly received a TV set from her employer Alfa Mart Company, a business entity engaged in the distribution of home appliances, in exchange for payment of her two-month salary amounting to Php. 50,000.00. The merchandise, with a prevailing market price of Php. 55,000, cost the company Php. 25,000.00. Determine Poly's taxable compensation 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

Eva received $60,000 in compensation payments from JAZZ Corp. during 2020. Eva incurred $5,000 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 $12,400. Based on these facts, answer the following questions: Use Tax Rate Schedule for reference. (Leave no answer blank. Enter zero if applicable.) c. Assume that Eva is considered to be a self-employed contractor. What is her self-employment tax liability and additional Medicare tax liability for the year
Jasmin is a mechanic. She runs her own business specialising in repairing electric cars. During the year, Jasmin incurred the following expenses: a) salary costs to her two regular employees of $150,000 (paid electronically through the business’s payroll system, which automatically applies the relevant tax withholding and pays the amount to the ATO); b) $5,000 on special overalls and eye goggles for Jasmin and her employees to use when they are repairing cars; c) childcare costs of $22,000 so that Jasmin can go to work every day; d) $1,000 on a one-day course on a new accounting software program that Jasmin wants to use in the business to better comply with new tax reporting requirements. Required: Advise Jasmin whether the above expenses would be deductible for income tax purposes.
Ramsey Smith receives wages amounting to $93,500. His net earnings from self-employment amount to $68,600. Smith must count ________ of his earnings in determining taxable self-employment income for OASDI taxes.
Tim and Martha paid $19,600 in qualified employment-related expenses for their three young children who live with them in their household. Martha received $1,400 of dependent care assistance from her employer, which was properly excluded from gross income. The couple had $156,850 of AGI earned equally. Use Child and Dependent Care Credit AGI schedule. Required: What amount of child and dependent care credit can they claim on their Form 1040? How would your answer differ (if at all) if the couple had AGI of $139,900 that was earned entirely by Martha?
Julie's gross salary is 950,000; mandatory contributions is 50,000. Compute for the following: a. gross compensation? b. exclusions from gross income c.taxable compensation
A woman earned wages of $ 54500. She recieved $ 2900 in interest from a savings account. Contributed $ 3600 to a tax deferred retirement plan. she was entitled to a pesonal exemption of $ 3300 and had deductions totaling $ 5130. Find her gross income Adjusted Gross Income Taxable Income
Chad and Jason Roberts paid $8,500 during the year for childcare for their three children, aged 2, 6 and 11. Chad's annual salary was $12,000 and Jason's annual salary was $42,000. Chad can deduct the $8,500 paid from his income. a) True b) False The entire amount of retiring allowance received must be included in income, even if some part of the allowance was transferred to an RRSP. a) True. b) False The amount earned in a Tax Free Savings Account (TFSA) is not subject to taxation; however, the withdrawals from a TFSA are taxed in the hands of the recipient. a) True b) False int) MacBook Pro
Ilene rents her second home. During the year, Ilene reported a net loss of $10,600 from the rental. If Ilene is an active participant in the rental and her AGI is $133,000, how much of the loss can she deduct against ordinary income in the year?
Sandra, a non-VAT taxpayer sold to Kyle, a VAT taxpayer, his goods for P50,000. The next day, Kyle sells the same goods to Bimbie, a VAT taxpayer for P89,600. Bimbie on the same day, sold the same goods to PCSI Co., Inc, a VAT taxpayer, and an accredited exporter in the Philippines for P 123,200. The next day, PCSI Co., exports the same goods for $ 7000 to USA ($1 = Php 45). All amounts given are total invoice prices. Question: The Value-added tax payable of Bimbie is:
Nikki works for the Shine Company, a retailer of upscale jewelry. How much taxable income does Nikki recognize under the following scenarios? (Round your answers to 2 decimal places. Leave no answer blank. Enter zero if applicable.) a) Nikki receives a 32 percent discount on jewelry restoration services offered by Shine Company. This year, Nikki had Shine Company repair a set of antique earrings (normal repair cost $905; discounted price $615.40).
B, a resident citizen, received a statutory minimum wage of P250,000. He also earns P100,000 from his fishball cart. Compute his income tax due.