The taxpayer’s marginal federal and state tax rate is 25%. Which would the taxpayer prefer?- A. $1.40 taxable income rather than $1.00 tax-exempt income.- B. $1.00 taxable income rather than $1.25 tax-exempt income.- C. $1.00 taxable income rather than $0.75 tax-exempt income.- D. $1.25 taxable income rather than $1.00 tax-exempt income. Under the cash receipts method, which of the following is true (mark all that apply):- A. The cash receipts method could distort taxable income since income and expenses from the same activity may be recognized in different tax years. A taxpayer using the cash receipts method has some degree of control over when income is recognized, such as by delaying the sending of invoices to customers.- B. Income is recognized in the year of actual or constructive receipt by the taxpayer, regardless of whether the income was earned in that year.- C. The taxpayer need not receive cash to be required to recognize income under the cash receipts method.- D. None of these is true.- E. Generally, a check received is considered a cash equivalent and, upon receipt, must be recognized as income by a cash basis taxpayer.- F. The receipt of anything with a fair market value, or a cash equivalent, is taxable under the cash receipts method.

Answered: taxpayer's marginal federal and A.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following is a deductible expense for an individual taxpayer? A) Rent payments for personal use B) Mortgage interest on a vacation home C) Childcare expenses while working D) Personal clothing purchases
Question 11: Which statement about calculating taxable earnings for Social Security tax is accurate? Answer: A. 401(k) contributions are taxable for Social Security tax and are subtracted from gross pay when calculating taxable earnings for that tax. В. O 401(k) contributions are taxable for Social Security tax and are not subtracted from gross pay when calculating taxable earnings for that tax. С. O 401(k) contributions are not taxable for Social Security tax and are subtracted from gross pay when calculating taxable earnings for that tax. D. O 401(k) contributions are not taxable for Social Security tax and are not subtracted from gross pay when calculating taxable earnings for that tax.
Which of the following statements are NOT correct? i. A registered taxpayer can claim input tax credit for items used for its exempt activities. ii. A registered taxpayer can claim input tax credit for items used for zero-rated activities. iii. The VAT rate Exempt supplies is 0%. iv. Zero-rated goods or services are taxable for VAT at 0%. Question 21Answer a. None of the above b. i, ii and iv c. i only d. i, and iii
1. The original Social Security tax rate was _____ of taxable earnings. Answer: A. 10% B. 1% C. 5% D. 7% 2. The 2021 Social Security wage base is _____. Answer: A. $100,000 B. $113,700 C. $125,000 D. $142,800 3. What is the earnings threshold over which an employee whose filing status is Married Filing Separately will be subject to the additional Medicare tax? Answer: A. $117,000 B. $125,000 C. $200,000 D. $250,000
am. 35.
Franklin Stewart arrived at the following tax information: Gross salary Interest earnings Eligible dividend income Basic personal amount Union dues Moving expense (50 km for employment) $49,100 870 110 39744.5 3,650 7,880 1,860 What amount will Franklin report as taxable income? (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.) Taxable income
Which of the following statements are NOT correct? i. A registered taxpayer can claim input tax credit for items used for its exempt activities. ii. A registered taxpayer can claim input tax credit for items used for zero-rated activities. iii. The VAT rate Exempt supplies is 0%. iv. Zero-rated goods or services are taxable for VAT at 0%. Question 6Answer a. i, ii and iv b. i, and iii c. i only d. None of the above
1. How much is the net taxable income using itemized deductions? 2. How much is the OSD (assuming taxpayer opted to use OSD)? 3. How much is the net taxable income using OSD?

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taxpayer's marginal federal and A. $1.40 taxable income rather th