Statement 1: Exclusions pertain to the computation of gross income, while deductions pertain to the computation of net income. Statement 2: Exclusions are something received or earned by the taxpayer which do not form part of taxable gross income, while deductions are something spent or paid in earning gross income.  a. Both statements are true b. Both statements are false c. Only statement 1 is true d. Only statement 2 is true

Q: Which of the following tax concept(s) allow for the deferral of gains on nonrecognition…

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Q: Identify a false statement:  a. If taxpayer derives income from employment only, any other income…

A: Taxable income refers to the income on which the taxpayer is liable to pay tax to the collecting…

Q: 2. The following are requisites of a valid tax, EXCEPT A. tax must not encroach upon inherent and…

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Q: What is the income that will not be taken into account in the determination of the Financial Profit…

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Q: rent income received by a lessor is not reportable as taxable

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Q: If the applicable statute of limitations on assessment of a tax deficiency has expired and a…

A: The question is related to true or False.

Q: PLEASE ANSWER ALL QUESTIONS IN BOTH 1 AND 2 PLEASE. 1. Some accountants believe that deferred taxes…

A: Temporary differences are defined as differences between the carrying amount of assets and…

Q: Which of the following "is not" a criteria that must be met to deduct business and/or investment…

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Q: a. Define the term constructive receipt. Explain its importance. b. Explain three restrictions on…

A: Receipts - The act of transferring anything of value from one party to another is acknowledged in…

Q: 1st statement – Tax exemptions are strictly construed against the government. 2nd Statement - When…

A: only statement second is correct, because whenever there is doubt regarding the taxability of an…

Q: taxable income

A: Income tax is payable by every person that crosses the tax-exempted threshold. However, various…

Q: 29. These pertain to items of income that are excluded in the computation of regular income tax * a.…

A: Solution Note dear student as per the Q&A guideline we are required to answer the first question…

Q: In lieu of itemizing  deductions, a taxpayer can elect to use or claim:     a. deduction for AGI…

A: Taxpayer can choose itemized deduction in lieu of standard deduction. Itemized deduction means those…

Q: at income be recognized when it is made available to the cash basis taxpayer even though there are…

A: The correct answer is  True    Explanation:  ruling is applicable only to the taxpayer who would…

Q: An item that is considered a nondeductible item in taxable income is recognizing estimated bad debts…

A: Non deductible item in taxable income is an item which will not be considered for deduction while…

Q: Section 6-5 of ITAA 199

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Q: Provide two examples of expenditures that are typically not allowable for tax deductions but are…

A: Introduction: A tax-deductible cost is one that is "ordinary, essential, and reasonable" and…

Q: No deductions shall be allowed where the transaction is between “related taxpayers” under Sec. 36(B)…

A: Solution Concept As per the provision of the Tax Code The interest expense in not allowed for…

Q: Exclusion from gross income refers to income received or earned but is not taxable as income because…

A: Gross income is the total income of an individual without deducting any deductions or exemptions. It…

Q: Statement 1: Deductions for business expenses for the taxable periods are those that benefit all…

A: Deductions for a taxable period are those expenditures either Revenue in nature or capital that are…

Q: TRUE OR FALSE? Under IFRS, deferred tax liability and deferred tax asset should be reported as…

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Q: Which of the following statements is NOT correct?

A: The answer for the multiple choice question and relevant explanation are presented hereunder :

Q: Which statement is false? a) Deferred taxes are the product of temporary difference in the…

A: Taxes refers to the amount that is charged by the government to individuals and organizations on the…

Q: Differentiate EXCLUSIONS, DEDUCTIONS and CREDITABLE WITHHOLDING TAX based on their similar…

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Q: 5) How should companies appropriately account for the tax benefit due to a loss carryforward? ( O…

A: When a company suffers net operating loss in the current year, it can set off this loss against the…

Q: All items of gross income, legitimate or not, are taxable unless exempted by law or treaty.…

A: c. Only statement 1 is true

Q: Which of the following is correct?    a. A person with vatable sales or receipts not exceeding the…

A: Value-added tax: The value-added tax refers to an indirect tax or sales tax that lived on the…

Q: True (t) or False (f) ______ The IRS does not require the taxpayer to use the same depreciation…

A: Due to various reasons such as normal wear & tear, obsolescence, change in technology, etc., the…

Q: statements is true? A.Deductions are not allowed unless there is a specific law authorizing the…

A:

Q: of an ad valorem tax on person al use property than for busine

A: Ad valorem taxes are proportional to the value of the asset on which it is charged.

Q: Section 32 (A) does not provide for the exclusive inclusions as to gross income. Group of answer…

A: Gross Income The Calculation of gross income which are stated in Section 32 of Bureau of Internal…

Q: There are three general views regarding interperiod income tax allocation: no allocation, partial…

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Q: doctrine is applied to deny favorable tax consequences to a transaction that never actually occurred…

A: Substance over form doctrine: The substance over form doctrine is alike sham transaction analysis.…

Q: A) Interest paid or accrued to purchase or carry tax-exempt investments is not deductible. B)…

A: Investment Income Under normal circumstances investment income can't be used for the tax deduction…

Q: 8.  S1: Fringe benefit that is exempt from fringe benefit tax is likewise exempt from any other…

A: S1: Fringe benefits tax (FBT) was a form of tax that companies paid in lieu of benefits they offered…

Q: hich of the following statements NOT correct? a.

A: Tax is a financial charge or levy imposed by a government on individuals, businesses, or other…

Q: 43. True or False. If the debt is canceled due to services rendered by the debtor, the basis of tax…

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Q: The Cohan rule has to do with: 1) Tax accounting methods 2) Debts of another taxpayer 3)…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Label the following as "True" or "False" regarding the definition of business income as it is used…

A: a. False: The taxable income computation for purposes of the § 179 limit generally includes the…