The following are your clients as a Consultant: Who among them is qualified to use 8% optional income tax?Choicesa duly registered Barangay Micro Business Enterprise with gross sales of Php 3 Milliona partner in ABC & Co., CPAS whose share in income of GPP amounted to Php 1 Millionan architect who opted for method of deduction and whose gross receipts amounted to Php 23 Milliona doctor operating his own clinic with gross receipts of Php 1 and at the same time an employee of ABCHospital and Medical Center with a gross salary of Php 3M

The 8% optional income tax can be only availed if all the conditions are satisfied: Taxpayers…

Answered: The following are your clients as 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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1. Pepe is a Manager working at Ayala Malls Legazpi for Taxable year 2020. He had the following data: • Basic Pay- 259,000.00 • Holiday & GT- 50,000.00 • Incentives - 50,000.00 TOTAL 359,000.00 Travel Allowance (to be liquidated) 100,000.00 MANDATORY BENEFITS: . SSS 10,000.00 • PHIC 1,200.00 • HDMI 1,000.00 Total 12,200.00 . COMPUTE THE GROSS COMPENSATION
Transactions for you to complete 1) Create A Supplier Account. Supplier: Ink Inspector Address: Oakville, ON Terms: N30 Exp acct: 5250 Licenses Tax Code: HI (HST @ 13%, included) 2) Create A Customer Account. Client: Noya Modeling Agency Terms: 1/15, N30 Address: Hamilton, ON Tax Code: H (HST @13%) Rev acct: 4050 Rev from services Credit Limit: $10,000 Change the Session Date to April 8, 2022 3) Enter the following transactions into Sage. Purchase Invoice #GB-806 Dated April 4 from Germ Busters; $3,750, plus HST for new sterilization equipment (add freight charges of $225 + HST). (Pay attention to the words! This is not sterilized needles; this is for sterilization equipment. You need to change the account number.) Sales Invoice Dated April 4 to Noya Modeling Agency $8,000, plus HST for laser treatments to remove tattoos on new models hired in the agency. Credit Card Sales Invoice Dated April 4 to One-Time walk-in clients. Sales Summary: $1,420, plus HST for laser treatments. Payment…
Assuming that a Nissan Car Manufacturing Company sold 100 cars to the wholesale trader for OMR 7,500 each plus VAT. The wholesale trader sold all the 100 cars to the retailer showroom for OMR 8,000 each plus VAT. The retailer showroom realized OMR 850,000 after selling all the 100 cars to the local customers plus VAT. Assume the rate of Value Added Tax (VAT) throughout in Oman is 5%. There Input tax credit available in Nissan Car Manufacturing Company account was OMR 42,500. ANSWER QUESTION NO 15 TO 18 Question 15 What will be the total tax burden by the consumers? a. OMR 85,000 b. OMR 42,500 c. OMR 40,000 d. OMR 47,500 Question 16 Which of the following statement will be correct for Nissan Car Manufacturer? a. Tax to be refunded from Government is OMR 5000 b. Tax to be payable to Government is OMR 37,500 c. Tax to be refunded from Government is OMR 42,500 d. Tax to be payable to Government is OMR 5000 Question 17 What will be the…
Margaret started her own business in the current year and will report a profit for her first year. Her results of operations are as follows: Gross income Travel Contribution to Presidential Election Campaign Transportation 5,300 miles equally across the year, using standard mileage method Entertainment in total Nine gifts at $50 each Rent and utilities for apartment in total (25 percent is used for a home office) Gross income Expenses: Travel Political contribution Transportation Entertainment Complete the table below to determine the net income Margaret should show on her Schedule C. If an amount is zero, enter "0". If required, round the amounts to the nearest dollar. Gifts Rent and utilities Total expenses Taxable business income 45,000 1,000 0 0 225 $45,000 1,000 100 2,625 X X ? X 4,200 450 10,500
Prove or disprove the statement below: The CNA (Collective Negotiation Agreement) is considered as a benefit for public employees. Given the formula below: CNA + 13th Month Pay + other benefits > Php30,000 are taxable. Suppose a certain government employee earns a CNA = php12,764.12, 13th Month Pay php24,291.78, and he has no other benefits. How much of his additional earning will be taxed?
Hank started a new business, Hank's Donut World (HW for short), in June of last year. He has requested your advice on the following specific tax matters associated with HW's first year of operations. Hank has estimated HW's income for the first year as follows: Revenue: Donut sales Catering revenues Expenditures: Donut supplies Catering expense Salaries to shop employees Rent expense Accident insurance premiums Other business expenditures Net Income $ 290,000 96,390 $394,398 $153,220 39,640 64,000 49,940 8,952 9,610 -325,362 $ 69,028 HW operates as a sole proprietorship, and Hank reports on a calendar year. Hank uses the cash method of accounting and plans to do the same with HW (HW has no inventory of donuts because unsold donuts are not salable). HW does not purchase donut supplies on credit, nor does it generally make sales on credit. Hank has provided the following details for specific first-year transactions. 1. A small minority of HW clients complained about the catering service.…
Choose the CORRECT statement about company income tax. A.Companies need to keep records and books of account for a year for review by the Inland Revenue Board (LHDN) B.Company tax is levied every two years. C.Tax is levied on companies earning income in Malaysia and outside Malaysia for insurance companies, sea and air transport and banking. D.Company income tax is imposed on resident companies with limited status only, excluding private limited companies.
Taxation Naga Tiddug applied and was hired as a cashier in Bagsakan Corporation. After saving enough money, he enrolled in the University of Saint Louis as an accountancy student. For 2021, he earned and incurred the following Salaries, net of: 162,000 SSS premium contribution -3600 Philhealth premium contribution -2400 Pag-ibig premium contribution- 3k Health and hospitalization premium contribution -2k Union dues- 3k Creditable withholding taxes-6k SSS loan- 10k Productivity bonus-12k Achievement award-cash -12k 13th month pay- 16k Christmas bonus- 16k Expense incurred: Tuition fee, board and lodging and other living expenses- 40k Medical expenses 10k Required A. How much is the non-taxable income of Naga? B. How much should be Naga's deductible expenses? C. How much is the taxable income of Naga? D. How much is the tax still payable (or refundable) of Naga?
Deductible Commission Salesperson Expenses - Example 4 Barton Ho is a commission salesperson. During the current year, in addition to his salary of $92,500, he earns and receives $34,700 in commissions. His costs for advertising were $12,200 and, in addition, he spent $6,400 on client entertainment. Because of the extensive travel required by his work, his travel accommodation costs totaled $16,100. Mr. Ho paid $5,000 for a sports club membership where he regularly entertains clients. He is required to pay his own expenses and does not receive any allowance from his employer. What is Mr. Ho's maximum expense deduction for the current year? Show your calculations.
As franchisee, Virgie delos Reyes had the following data on revenue and receivables: Revenues Receivables, beg Receivables, end 2,000,000 From Operations covered by the franchise 300,000 400,000 From Operations not covered by the franchise 600,000 90,000 80,000 45 25 The percentage tax, if operating a water system, is *
calculate martha's agi: salary, $90,000 unemployment, 3,000 contribution to IRA, 3,000 hobby income, 4,500 gambling winnings, 1,500 hobby supplies, 5,000 cash (cafeteria plan) 4,000 gambling losses 500 state income tax paid, 6,000 related to business: advertising, 2,500 charity contribution, 1,200 parking ticket paid by business, 200 revenue, 30,000 1/2 tax (self employment) 5,600 supplies for business, 8,000 sub contractors, 10,000 use 2020 tax information
Jackie Company is an FIRB-registered enterprise. Following is its financial performance for a five-year period. Assume all are earned/incurred evenly for each year. Assuming it is a Tier 1 domestic enterprise which started its commercial operation at Quezon City in September 1, 2026, how much is its income tax payable for 2035 assuming the use of SCIT and that it relocated to Cagayan in 2031?

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