Answer number 1 and 2. 2. Assume that Mr. TD, a resident citizen employee, has the followingcompensation income for year 2022:Compensation income -Annual basic salaryAllowances13th month payChristmas bonusCash giftProductivity incentiveGross compensation incomeSSS and other contributions -SSS premium contributionPHIC contributionPag-ibig contributionRequired:Compute income tax payable by Mr. TD for year 2022.P 720,00075,00060,00060,0005,0005,000925,00010,80014,4001,200 3. Assume that Mr. DD, a resident citizen employee, has the followingcompensation income for year 2022:Annual basic salaryCost of living allowanceRepresentation and transportation allowance13th month payChristmas bonusProductivity incentiveDe minimis benefits -Uniform/Clothing allowanceMedical cash allowanceRice subsidyLaundry allowanceSSS and other contributions -SSS contributionPhilHealth contributionPag-Ibig contributionReceived10,0004,20030,0006,000Limit6,0003,00024,0003,600Excess4,0001,2006,0002,400Required:Compute income tax payable by Mr. DD for year 2022.P 420,00060,00060,00035,00035,0005,00010,8008,4001,200

The questions asked to compute the income tax payable by Mr. TD, and, Mr, DD. According to the…

Answered: 2. Assume that Mr. TD, a resident…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter12: Alternative Minimum Tax

Section: Chapter Questions

Problem 24CE

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Indicate whether each of the items listed below would be included (I) in or excluded (E) from gross income for the 2019 tax year. ______ a. Welfare payments ______ b. Commissions ______ c. Hobby income ______d. Scholarships for room and board ______ e. $ 300 set of golf clubs, an employee award for length of service ______ f. Severance pay ______ g. Ordinary dividend of $ 50 ______ h. Accident insurance proceeds received for personal bodily injury ______ i. Inheritances ______ j. Gifts ______ k. Tips and gratuities
LO.2 Osprey Corporation, an accrual basis taxpayer, had taxable income for 2019 and paid 40,000 on its estimated state income tax for the year. During 2019, the company received a 4,000 refund upon filing its 2018 state income tax return. The company filed its 2019 state income tax return in August 2020 and paid the 7,000 state income tax due for 2019. In December 2019, the company received a notice from the state tax commission that an additional 6,000 of income tax was due for 2017 because of an error on the return. The company acknowledged the error in December 2019 and paid the additional 6,000 in tax in February 2020. What is Ospreys 2019 Federal income tax deduction for state income taxes?
Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and the amount of federal income tax withholding are as follows. Lemurs payroll deductions include FICA Social Security at 6.2%, FICA Medicare at 1.45%, FUTA at 0.6%, SUTA at 5.4%, federal income tax as previously shown, state income tax at 5% of gross pay, and 401(k) employee contributions at 2% of gross pay. Record the entry for the employee payroll on December 31.
How do the all events and economic performance requirements apply to the following transactions by an accrual basis taxpayer? a. The company guarantees its products for six months. At the end of 2019, customers had made valid claims for 600,000 that were not paid until 2020. Also, the company estimates that another 400,000 in claims from 2019 sales will be filed and paid in 2020. b. The accrual basis taxpayer reported 200,000 in corporate taxable income for 2019. The state income tax rate was 6%. The corporation paid 7,000 in estimated state income taxes in 2019 and paid 2,000 on 2018 state income taxes when it filed its 2018 state income tax return in March 2019. The company filed its 2019 state income tax return in March 2020 and paid the remaining 5,000 of its 2019 state income tax liability. c. An employee was involved in an accident while making a sales call. The company paid the injured victim 15,000 in 2019 and agreed to pay the victim 15,000 a year for the next nine years.

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