A taxpayer engaged in service business provides you with the following. Determine the gross income under CASH basis for EACH YEAR (2019 , 2020), * 2019 2020 Description Collections from services rendered-current P600,000 P800,000 Billings for revenues earned but uncollected Collections from uncollected billings in 2019 Collections from uncollected billings in 2020 Advance collections for services not yet rendered 500,000 200,000 470,000 50.000 200,000 300,000 How much is the gross income under cash basis? P1,400,000 P1,720,000 P1,370,000 P1,050,000 P1,100,000 P1,050,000 RO00 000 R1 530.000

A taxpayer engaged in service business provides you with the following. Determine the gross income under CASH basis for EACH YEAR (2019 , 2020), * 2019 2020 Description Collections from services rendered-current P600,000 P800,000 Billings for revenues earned but uncollected Collections from uncollected billings in 2019 Collections from uncollected billings in 2020 Advance collections for services not yet rendered 500,000 200,000 470,000 50.000 200,000 300,000 How much is the gross income under cash basis? P1,400,000 P1,720,000 P1,370,000 P1,050,000 P1,100,000 P1,050,000 RO00 000 R1 530.000

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 9DQ

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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.
During 2019, Carl (a single taxpayer) has a salary of $91,500 and interest income of $11,000. Calculate the maximum contribution Carl is allowed for an educational savings account. $0 $400 $1,000 $2,000 Some other amount
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?