(a) Differentiate between income tax and sales tax. Explain both of these types with the help of examples. (examples are must) (b) “Land" is not considered as a depreciable property. WHY?
Q: 13. Depreciation decreases: * Capital O Cash O Bank O Liabilities
A: In economics, capital is defined as assets which include tools, plants, and equipments. These assets…
Q: Define the term Salvage value and gains tax?
A: Depreciation: The term depreciation refers to the fall in monetary value of assets due to its use,…
Q: A corporation has a taxable income of $7,060,373. At this income level, the federal income rate is…
A: Answer - 1 Below information Given, A corporation has a taxable income of $7,060,373. The…
Q: 4. A firm purchased $120,000 worth of light general- purpose trucks. The operations of the trucks…
A:
Q: A capital gain is calculated by the equation: (a) Capital gain = book value – selling price (b)…
A: The difference between the selling price and purchasing price is termed as capital gain or loss.
Q: Income before tax (dollars) 0 20,000 40,000 60,000 80,000 Tax plan A (dollars) 0 2,000 5,000 10,000…
A: In a progressive tax structure is a tax structure in which the tax burden increases as taxable…
Q: Personal income tax rates in South Africa, 2015/16 Taxable income Tax Payable Rand 0-181 900 18% of…
A: Income tax is the tax that the government imposed on the public as a direct tax. Income does not…
Q: What does the Depreciable property include?
A: What is usually depreciable is income-producing property owned by a individual and used for more…
Q: A tax- and duty-free importation of a 30hp sand mill (for paint manufacturing) cost 360,000. CIP…
A: In the question above, it is given that : Manufacturing Cost = 360,000 Bank charges and brokerage…
Q: Tax System A Marginal Tax Rate Tax Sy Income Range 0- $20,000 $20,001-$40,000 $40,001 - $80,000…
A: Average tax rate is the share of income a tax payer pay in taxes. A taxpayer's marginal tax rate is…
Q: Quèstion 3 Depreciation be applied to machinery, equipment, vehicles, telephone, computers,…
A: Answer: True, Explanation: The given statement is true because all of the given items are assets…
Q: Define the term Depreciable Property?
A: Accordance with the IRS (internal revenue service) rule, any asset which is eligible for the…
Q: A lumber company purchased a tract of timber for $70,000. The value of the 25,000 trees on the tract…
A: Depletion: It refers to the cost which occurs when the producers take out the natural resources such…
Q: Give 3 reasons for the depreciation of assets
A: The value of the fixed assets may fall due to the wear and tear. This is reffered as depreciation.…
Q: Question 4 DraftJacks, Inc., took an uncertain tax position in 2019, recording an unrecognized tax…
A: 1. The current market value of an ordinary share of a company is the current price of shares quoted…
Q: Xon, a small oil company, purchased a new petroleum drilling rig for $2,000,000. Xon will depreciate…
A: Answer; Working
Q: Ajinkya Electronic Systems, a company in Indiathat manufactures many different electronicproducts,…
A: The total amount of tax which is paid by the person to supplier A can be calculated as follows:…
Q: Q5 A coal mine has a gross income of $300,000 for the year. Mining expenses equal $300,000. Compute…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Ajinkya Electronic Systems, a company in Indiathat manufactures many different electronicproducts,…
A: A value added tax ( VAT) is a consumption tax placed on a product whenever value is added at each…
Q: How can we Determine the after-tax cash flows?
A:
Q: 4) A contractor imported a bulldozer paying P500k to the manufacturer, freight & insurance charges…
A: Hi! thanks for the question but as per the guidelines we answer only one question at one time.…
Q: 3. An asset that is book-depreciated over a 5-year period by the straight line method has BV3 =…
A: Given: The asset price is: BV3 = $62,000 The depreciation charge is = $26,000 Total life is = 5 year…
Q: 17. The market value of a newly constructed homes MOST likely very similar to its A.highest and best…
A: 17) Market value can be defined as the worth of an asset in the financial market. So the market…
Q: Problem 17.049: Calculate the after-tax AW of two alternatives A European candy manufacturing plant…
A: * SOLUTION :- Given that ,
Q: In 2015, a firm has receipts of $8 million and expenses (excluding depreciation) of $4 million. Its…
A: Given information: Receipt = $8 million Expenses = $4 million Depreciation = $2 million Effective…
Q: Calculate all applicable documentary stamp taxes and intangible taxes associated with financing the…
A: Documentary Stamp Tax: a charge on the transfer of an obligation or right or property shown by a…
Q: A graduated income tax system means: (a) Only taxable incomes above a certain level pay any taxes…
A: A graduated tax system is also called a Progressive income tax system.
Q: An asset with a first cost of $10,000 is depreciated using 5-year MACRS recovery. The cash flow…
A: Initial Cost = 10,000
Q: A stone and gravel quarry in Texas can use a percentage depletion rate of 5% of gross income, or a…
A: (a) Calculated value = depletion rate * gross income * given value =…
Q: 3. You purchased a 5-year property class item for $60,000. After using this item for 3 years you…
A: MACRS depreciation method The modified accelerated cost recovery system (macrs) is a method of…
Q: Which of the following is not a depreciable asset? a. Machinery. b. Vehicles c. Land. d. Building.
A: Depreciable assets: Those assets that can get used up or become obsolete, wear out, decay or lose…
Q: Calculate gross value added of factor cost : (1) Units of output gold (units) 1000 (ii) Price per…
A: Answer: Gross value added at factor cost = Gross value added at market price - Net indirect taxes…
Q: a Smith, a smart pretty lady, stole £500,000 from
A: answer A this load of elements, non-sharable monetary need, seeing an opportunity, and defense…
Q: A. NNP minus income taxes. 3. GNP plus depreciation. C. GDP minus sales taxes.
A: National income is the complete worth a country's last result of every new products and services…
Q: 1) Depreciation, a type of expense, is included in the A) research and development B) interest C)…
A:
Q: Pennington Oil is in the 50% effective tax bracket. It had gross income of $470 million in each of…
A: Taxable income for year 1 can be calculated as follows: Thus, the taxable income for year 1 is $155…
Q: Laila’s Surveying Inc. had revenues of $1.5 million in 2016. Expenses totaled $900,000. What was her…
A: Total cost is the total amount incurred on production of goods and services. Total revenue is the…
Q: A furniture company buys a forest to obtain wood for manufacturing furniture. The related costs to…
A: Depletion: It is a decrease in the number or quantity.
Q: Explain how the cost basis of depreciable property is determined.
A: Depreciable property is defined as the assets which includes all the vehicles, machinery and…
Q: A mining corporation purchased $120,000 of production machinery and depreciated it using 40% bonus…
A: The time value of money refers to the concept that the money you have now is worth more than the…
Q: A robotic company recorded the following the past year: revenues = $300,000; expenses = $50,000;…
A: Answer in step 2
Q: RZ Company, a calendar year taxpayer, paid $6,400,000 for a commercial office building and allocated…
A: When calculating depreciation for tax purposes in the United States, taxpayers use the modified…
Q: How does tax depreciation affect income taxes?
A: The tax is a unilateral payment made by the public towards the government for various purposes such…
Q: What is Depreciable Property?
A: Depreciation: - depreciation is a process of a systematic allocation of the cost of an asset over…
Q: 8. All the following are holding cost EXCEPT: A. obsolescence cost B. overheads C. handling D.…
A: The expenses that are in turn being incurred for carrying out transactions of a business in the…
Q: TRUE OR FALSE? Any internal revenue tax, which has been assessed within the prescribed limitation…
A: The internal revenue tax refers to the total amount of tax generated by the government through…
Step by step
Solved in 2 steps
- Which tax is paid on individual income from sales of assets? a-sales tax b-excise tax c-estate tax d-capital gains taxWhat is the primary difference between a sales tax and a value-added tax?Pennington Oil is in the 50% effective tax bracket. It had gross income of $470 million in each of the last 2 years. In the first year, deductions were $160 million. In the second year, deductions were lower at $120 million. The difference in income taxes paid by the company in the 2 years was closest to: (a) $10 million (b) $20 million (c) $50 million (d ) $40 million
- Question 4Calculate the gross value added : Sale - 400 Changein stock -(-20) Depreciation - 30Net indirect taxes - 40 Purchasea of mchinery - 200 Purchaseof an intermediate production - 250Calculate the value of net indirect tax GNP at MP = $7000 Domestic income = $6200 Depreciation = $600 Net factor income from abroad = -400 All values are in millionDifference Between Sales Tax and Income Tax?Note: Answer should be made in points
- What would not result from replacing the income tax with consumption tax Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.a. What is taxable income for the first year? I have the formula taxable income = gross income - expenditures - depreciation. however I can't find depreciation value (can't tell if deductibles can be depreciated). From using the formula I got 845,330. b. how much should the company expect to pay in taxes in the first year? There are no state income taxes required. for this I got 245,699 dollars. Please help me verify my answers. thanksAkshay is single and lives in Thunder Bay. Akshay earned $60,000 in 2013. The following table shows the federal tax rate for individuals in 2013. NOTE: Marginal Tax Rate options are (15, 22, 26, 29) Taxes Owed options are (8983, 10151, 11383, 12579, 13174) Average Tax Rate options are (15, 17, 19, 21, 22)
- Table 12-10 On Taxable Income ... The Tax Rate is ... Up to $8,375 10% From $8,375 to $34,000 15 From $34,000 to $82,400 25 From $82,400 to $171,850 28 From $171,850 to $373,650 33 Over $373,650 35 Refer to Table 12-10. If Willie has $170,000 in taxable income, his tax liability will be a. $16,781. b. $41,309. c. $41,827. d. $47,600.Joe and Mary are filing a joint tax return. Their combined taxable income is $130,000. How much do they owe in Federal income tax for year 2018?Required Compute the deferred tax expense and the balance of the deferred tax account for each year. Prepare all journal entries required to record Oliver’s income tax provision for all 3 years.