William, a resident, has taxable income for 2020/21 of $60,000. The PAYG amounts withheld by his employer totalled $11,500 for the year. What is William's net tax liability after considering all offsets, levies and credits?

William, a resident, has taxable income for 2020/21 of $60,000. The PAYG amounts withheld by his employer totalled $11,500 for the year. What is William's net tax liability after considering all offsets, levies and credits?

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter12: Tax Administration And Tax Planning

Section: Chapter Questions

Problem 21MCQ

See similar textbooks

Related questions

Q: Purchases Inventory, September 15,755 Administrative expense 732 $30,526 Selling expense $ 769…

A: Formula: Cost of goods sold = Beginning inventory + Net purchases - Ending inventory

Q: Capital projects funds account for construction expenditures, not for the assets that are being…

A: Statement of Revenue Expenditure & Changes in Fund Balance is a statement which shows the flow…

Q: A machine with a cost of $55,000 has an estimated residual value of $3,852 and an estimated life of…

A: A double-declining balance method is an accelerated depreciation method Using this method, the value…

Q: Within corporate governance, discuss the agency theory, stewardship theory, and stakeholder theory.…

A: Corporate governance refers to the system which formulates the desired set of rules and regulations…

Q: Part 1: Prepare a bank reconciliation for may. Part 2: 1. Record the interest of $110 receipt from…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: Prepare the entries on Big and Bigger's books under each of the following scenarios: a. The exchange…

A: As per PFRS 38, intangible assets will be classified at their fair value if it is acquired through…

Q: Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a…

A: a. Direct labor rate variance = -$68,200 F b. Direct labor time variance = $306,600 U c. Direct…

Q: Inventories 4/1 4/30 Direct Materials $ 19,000 $ 15,800 Work in Process 9,400…

A: Prime cost represents the cost that involves the material cost and labor cost incurred in the…

Q: When preparing a Balance Sheet for a partnership, Total Assets must equal what? Group of answer…

A: Partnership Account - A partnership is a mutual agreement enter into two or more entities for the…

Q: What really is accountants, and how does it apply to the business world?

A: Introduction:- Accounting plays important role in every business because it helps you track income…

Q: Explain the significant inherent risks associated with inventory. Explain the process of physical…

A: Internal controls mean to control the internal activities of the company. the internal control is…

Q: 2. On June 4, Marie Company had cash sales rung up by cashiers totaling $119,000Cash in the drawer…

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

Q: Do you want to make a double entry? On November 7, 2021, a fire broke out at the store, destroying…

A: When there is a loss of goods by fire, an expense account is debited named loss by fire account and…

Q: What is a summary of the changes in each partner's capital in a partnership that have occurred…

A: The assets and liabilities of partnership are presented in Balance sheet. The income and expenses…

Q: Entries Related to Uncollectible Accounts The following transactions were completed by The Wild…

A: 2.a. Transactions under the allowance method Date Account title Debit Credit Jan 19 Accounts…

Q: Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock,…

A: The shares issued at the higher amount as compared to par value are the shares issued at premium.…

Q: a Income statement for the year ended April 30. b. Statement of changes in equity for the year ended…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: etermine the missing amount for each of the following: Assets = Liabilities $264,300 $9,090 $132,150…

A: Introduction:- A balance sheet is a statement of assets, liability, and equity. It is prepared after…

Q: Salaries and wages payable Salaries and wages expense Utilities expense Equipment $1,700 51,800…

A: Introduction: Income statement: All revenues and expenses are to be shown in Income statement. It…

Q: Seth Feye established Reliance Financial Services on July 1, 20Y2. Reliance Financial Services…

A: Balance sheet is the financial statement which is prepared for the purpose of knowing the financial…

Q: A company issued 60 shares of $100 par value common stock for $7,000 cash. The total amount of…

A: Par value of shares = 100 shares x $60 = $6000 Paid in capital in excess of par = 100 shares x $10 =…

Q: A, B, and C are partners who each donated P6,000.00, P4,000, and P4,000, respectively, and…

A: The Accounting Information System (AIS) provides data that is needed for decision-making. It…

Q: Fast Deliveries, Incorporated (FDI), was organized in December last year and had limited activity…

A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

Q: 00; stock worth $50,000; fixtures worth $10,000 and is also brought in $1,000 cash into the…

A: Solution:- Long term loan =Total assets - Total Capital = $186,000 - $80,000 = $106,000 Note:-…

Q: A 60-day, 6% note for $26,400, dated May 1, is received from a customer on account. The maturity…

A: Formula: Maturity Value of Note = Face Value of Note + Interest on Note Maturity Value of Note =…

Q: Cost of goods manufactured $198,240 Selling expenses 66,220 Administrative expenses 35,010 Sales…

A: Formula to be used is :- Cost of finished goods available for sale = Beginning finished goods…

Q: On August 1, Kim Company accepted a 90-day note receivable as payment for services provided to Hsu…

A: Lets understand the basics. When transaction happen between parties and in consideration of that…

Q: Year 1 total cash dividends Year 2 total cash dividends Year 3 total cash dividends Year 4 total…

Q: The Post Division of the M.T. Woodhead Company produces basic posts which can be sold to outside…

A: Introduction: A transfer price is an amount paid by one split of a commercial body to another…

Q: Maturity Dates of Notes Receivable Determine the maturity date and compute the interest for each of…

A: A note receivable is a written promise to pay a certain sum of money at a future date or on the…

Q: What is the noncontrolling interest's share of Rockne's 2021 income? Prepare Doone's 2021…

A: The term acquisition means when a company purchased the majority share of the other company then…

Q: What is the capital called that is contributed to the corporation by the stockholders and others?…

A: Retained earnings is the accumulated profit of the business. Owner's capital is the total paid in…

Q: Energetic and Faithful decided to form a partnership on June 1, 2021 by investing P100,000 and…

A: Partnership is one of the agreement or arrangement between two or more than two persons, in which…

Q: Exercise 2. Adjusting entries for prepaid insurance The balance in the prepaid insurance account,…

A: Adjusting entries are journal entries usually made at the end of an accounting period to allocate…

Q: The Boxwood Company sells blankets for $36 each. The following was taken from the inventory records…

A: In case of FIFO method the first purchased goods/Beginning inventory will be sold first.

Q: Assess the truth of this statement: The normal balance of a partner's capital account is a credit…

A: Capital of any kind has a normal credit balance because it is treated as an internal liability of…

Q: Light Co.’s accounts receivable balances at the beginning and end of the period were 80,000 and…

A: Accounts Receivable is one of the current asset of the business, which means credit sales made by…

Q: Calculate the amount of the bad-debt expense for Martin Services for the year ended December 31,…

A: In percent of accounts receivable method of estimating bad debts. The business entity uses a fixed…

Q: A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a…

A: A Journal entry is a primary entry that records the financial transaction initially. The…

Q: purchased for $20,000. The firm expects the loader to salvage value of $5,000 after 7 years. The…

A: Explanation of Concept Annual Worth method is been used for decision making where two assets is…

Q: What type of opinion is issued by the auditorr if he or she is unable to determine the overall…

A: Introduction: Auditing is the process of checking, validating, and investigating all financial…

Q: The interest on a 6%, 60-day note for $5,000 is $300. O True O False

A: Interest = Note value × Interest rate ×60/360

Q: Companies that use OSD can deduct the cost of sales or the cost of services. Is it true or false

A: Business activities in every country are governed by certain Business laws that have direct…

Q: Pasternik Company produces and sells two products, Alpha and Zeta. The following information is…

A: Activity based costing (ABC): It is a costing method in which overhead and indirect costs are…

Q: A firm uses simple exponential smoothing with "a = 0.5" to forecast demand. The forecast for the 1st…

A: Given that, Actual demand = 452 units Forecast for 1st week of January = 505 units alphaα = 0.5

Q: An installment note is a liability requiring a series of payments to the lender. True or False True…

A: Introduction: An instalment note is a legal obligation or liability that requires the lender to…

Q: In the Malthusian model, population grows exponentially while food production grows linearly. For…

A: Lets understand the basics. For calculating population after 63 years, we need to use below formula.…

Q: Assuming a 360-day year, proceeds of $52,258 were received from discounting a $52,919, 90-day note…

A: Introduction:- A note is a written promise to pay a specific amount of money at a specified period…

Q: Explain Prudence concept and provide example.

A: Following accounting concepts & principles are used in accounting: Business entity principle…

Q: Compute the thed Be

A: * As per Bartleby policy, when multiple different questions are asked then answer first only.…

Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

William, a resident, has taxable income for
2020/21 of $60,000. The PAYG amounts
withheld by his employer totalled $11,500 for
the year.
What is William's net tax liability after
considering all offsets, levies and credits?
$1,533 refund
$1,513 refund
An amount not shown here
$9,987 payable
$8,787 payable
$1,413 refund
$11,167 payable
$433 refund
$333 refund

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Arthur Wesson, an unmarried individual who is age 68, reports taxable income of 510,000 in 2019. He records positive AMT adjustments of 80,000 and preferences of 35,000. Arthur itemizes his deductions, and his regular tax liability in 2019 is 153,694. a. What is Arthurs AMT? b. What is the total amount of Arthurs tax liability? c. Draft a letter to Arthur explaining why he must pay more than the regular income tax liability. Arthurs address is 100 Colonels Way, Conway, SC 29526.
Lisa records nonrefundable Federal income tax credits of 65,000 for the year. Her regular income tax liability before credits is 190,000, and her TMT is 150,000. a. What is Lisas AMT? b. What is Lisas regular income tax liability after credits?
B Corporation, a calendar year-end, accrual basis taxpayer, is owned 75 percent by Bonnie, a cash basis taxpayer. On December 31,2019, the corporation accrues interest of $4,000 on a loan from Bonnie and also accrues a $15,000 bonus to Bonnie. The bonus is paid to Bonnie on February 1,2020; the interest is not paid until 2021 . How much can B Corporation deduct on its 2019 tax return for these two expenses? $0 $4,000 $15,000 $19,000 $12,000
During the 2019 tax year, Brian, a single taxpayer, received $ 7,400 in Social Security benefits. His adjusted gross income for the year was $14,500 (not including the Social Security benefits) and he received $ 30,000 in tax-exempt interest income and has no for-AGI deductions, Calculate the amount of the Social Security benefits that Brian must include in his gross income for 2019. SIMPIFIED TAXABLE SOCIAL SECURITY WORKSHEET (FOR MOST PEOPLE) 1. Enter the total amount of Social Security income. 2. Enter one-half of line 1 3. Enter the total of taxable income items on Form 1040 except Social Security income. 4. Enter the amount of tax-exempt interest income. 5. Add lines 2,3, and 4 6. Enter all adjustments for AGl except for student loan interest, the domestic production activities deduction, and the tuition and fees deduction. 7. Subtract line 6 from line 5 . If zero or less, stop here, none of the Social Security benefits are taxable. 8. Enter $ 25,0001 $ 32,000 if married filing jointly; 0 if married filing separately and living with spouse at any time during the year) 9. Subtract line 8 from line 7 . If zero or less, enter -0 - Note: If line 9 is zero or less, stop here; none of your benefits are faxable. Otherwise, go on to line 10 10. Enter $ 9,0001 $12,000 if married filing jointly; 0 if married filing separately and living with spouse at any time during the year) 11. Subtract line 10 from line 9. If zero or less, enter -0 -. 12. Enter the smaller of line 9 or line 10 . 13. Enter one-half of line 12 14. Enter the smaller of line 2 or line 13 . 15. Multiply line 11 by 85 (. 85 ). If line 11 is zero, enter -0 -. 16. Add lines 14 and 15 17. Multiply line 1 by 85(.85) 18. Taxable benefits. Enter the smaller of line 16 or line 17 . 1.____________ 2.____________ 3.____________ 4.____________ 5.____________ 6.____________ 7.____________ 8.____________ 9.____________ 10.____________ 11.____________ 12.____________ 13.____________ 14.____________ 15.____________ 16.____________ 17.____________ 18.____________
Troy, a cash basis taxpayer, is employed by Eagle Corporation, also a cash basis taxpayer. Tray is a full-time employee of the corporation and receives a salary of 60,000 per year. He also receives a bonus equal to 10% of all collections from diems he serviced during the year. Determine the tax consequences of the following events to the corporation and to Troy: a. On December 31, 2019, Troy was visiting a customer. The customer gave Troy a 10,000 check payable to the corporation for appraisal services Troy performed during 2019. Troy did not deliver the check to the corporation until January 2020. b. The facts are the same as in part (a), except that the corporation is an accrual basis taxpayer and Troy deposited the check on December 31, but the bank did not add the deposit to the corporations account until January 2020. c. The facts are the same as in part (a), except that the customer told Troy to hold the check until January 2020 when the customer could make a bank deposit that would cover the check.
Kurstie received a 800 state income tax refund this year. Kurstie deducted 3,000 of state income taxes paid in the prior year as part of her itemized deductions. Which of the following statements regarding the taxability of Kursties refund is true? a. If Kursties itemized deductions exceeded the standard deduction by 200, then the 800 refund is included in gross income. b. If Kursties itemized deductions exceeded the standard deduction by 200, then 200 of the refund is included in gross income. c. If Kurstie claimed the standard deduction instead, then the 800 refund is taxable. d. Kurstie must include 3,000 in gross income in the current year.