Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Chapter 6, Problem 2P
To determine
Introduction:A taxpayer is required to report taxable income using the method of accounting regularly used by the taxpayer for maintaining records and the method that clearly reflects the taxpayer’s income. The recognized methods are accrual method, cash receipt method and hybrid method of accounting.
The income from business in the calendar year.
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Yolanda is a cash basis taxpayer with the following transactions during the year:
Cash received from sale of products
$70,000
Cash paid for expenses (except rent and interest)
40,000
Rent prepaid on a leased building for 18 months beginning December 1
48,600
Prepaid interest on a bank loan, paid on December 31 for the next 3 months
5,000
Calculate Yolanda's income from her business for this calendar year.
If an amount is zero, enter "0". If required, in your computations round any division to five decimal places and round final answers to the nearest dollar.
Sales income
Expenses:
Other than rent and interest
Rent
Interest
Net income
please answer do not image format
Anna has the following income for the quarter:
a. Professional income P80,000
b. Income from her business P30,000
c. Compensation income P40,000
d. Interest income from bank deposit P10,000.
1. What amount of income will Anna report in her quarterly income tax return?
a. P80,000
b. P110,000
c. P120,000
d. P150,000
2. If Anna, opted to use 8% rate, how much is her income tax due in her quarterly ITR?
a. P6,400
b. P8,800
c. P9,600
d. P12,000
!
Required information
[The following information applies to the questions displayed below.]
Christopher is a self-employed cash-method, calendar-year taxpayer, and he made the following cash payments related to
his business this year.
Calculate the after-tax cost of each payment assuming Christopher has a 37 percent marginal tax rate.
b. $800 of interest on a short-term loan incurred in September and repaid in November. Half of the loan proceeds was used
immediately to pay salaries and the other half was invested in municipal bonds until November.
After-tax cost
Chapter 6 Solutions
Income Tax Fundamentals 2020
Ch. 6 - E Corporation is a subchapter S corporation owned...Ch. 6 - Income and loss from which of the following...Ch. 6 - Which of the following entities is likely to have...Ch. 6 - Which of the following is an acceptable method of...Ch. 6 - Which of the following entities is required to...Ch. 6 - Prob. 6MCQCh. 6 - B Corporation, a calendar year-end, accrual basis...Ch. 6 - Prob. 8MCQCh. 6 - Prob. 9MCQCh. 6 - Prob. 10MCQ
Ch. 6 - Prob. 11MCQCh. 6 - Prob. 12MCQCh. 6 - For 2019, Roberta is a self-employed truck driver...Ch. 6 - Prob. 14MCQCh. 6 - Prob. 15MCQCh. 6 - Which of the following employees would not be...Ch. 6 - Prob. 17MCQCh. 6 - Prob. 18MCQCh. 6 - Prob. 19MCQCh. 6 - Christine and Doug are married. In 2019, Christine...Ch. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Geraldine is an accrual basis taxpayer who has the...Ch. 6 - Prob. 4PCh. 6 - Prob. 5PCh. 6 - Prob. 7PCh. 6 - Prob. 8PCh. 6 - Refer to the previous problem 8. If Stan's parents...Ch. 6 - Prob. 10PCh. 6 - Prob. 11PCh. 6 - Otto and Monica are married taxpayers who file a...Ch. 6 - Prob. 13PCh. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Sally hires a maid to work in her home for $280...Ch. 6 - Prob. 18PCh. 6 - Rachel is single and has wages of $150,000 and...Ch. 6 - Married taxpayers Otto and Ruth are both...
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