ABC Hospital, a private non-profit hospital, has gross receipts of P19,000,000,00 with a cost of P6,000,000,00 and allowable deductions of P3,250,000.00 from related activities, while for its unrelated activities, it incurred P5,000,000.00 and P2,000,000.00 as cost of sales and allowable deductions, respectively, with a gross receipts of P18,000,000,00, for Calendar Year 2021. Tax due is:
Q: LA Corporation donated P1,000,000 to a government agency which was created to generate profit for…
A: Solution under the law on donor's tax , when a donation is made to a government agency conducted for…
Q: A private not-for-profit entity is working to create a cure for a deadly disease. The charity starts…
A: a. Prepare a statement of activities for a private not-for-profit entity.
Q: A voluntary health and welfare entity has the following expenditures: How should the charity report…
A: Following service are program service expenses: Following service is supporting service expenses:
Q: te De University, a proprietary educational institution, has the following selected information for…
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Q: Compute the charitable contribution deduction (ignoring the percentage limitation) for each of the…
A: Fair value is the agreed value between the buyer and the seller and this value is also considered as…
Q: Upward and Onward, Inc., a § 501(c)(3) organization that provides training programs for welfare…
A:
Q: Theresa Johnson does volunteer work for a local not-for-profit entity as a community service. She…
A: Answer: Option b.
Q: Determine the deductible charitable contribution in each of the following instances. Required: a.…
A: DEDUCTIBLE CHARITABLE CONTRIBUTION IS LOWER OF : 1. 10% OF TAXABLE INCOME BEFORE CHARITABLE…
Q: A private not-for-profit health care entity provides its patients with services that would normally…
A: Option a. After the acquisition, $-0- should be reported as goodwill on the combined balance sheet.
Q: Remsco has taxable income of $67,000 and a charitable contribution limit modified taxable income of…
A: The correct answer is Option D.
Q: In its first year (2021), Camco Incorporated generated a $92,000 net operating loss, and it made a…
A: The donation to local charity of $5000 in year 2021 will not be allowed as deduction in year 2021…
Q: Under Lennon Hospital’s rate structure, it earned patient service revenue of $9 million for the year…
A: The not-for-profit organizations are the organizations who provides services for the public…
Q: The following selected events relate to the 2019 activities of Fall Nursing Home, Inc., a…
A: Required journal is as follows: Result:
Q: A Charity institution capital fund of the non profit organization has OMR 900,000. The income…
A: Income statement is one of the financial statement that are prepared by the business entity at the…
Q: A private not-for-profit entity is working to create a cure for a deadly disease. The charity starts…
A: The statement of activities is as follows: The resultant table is as follows:
Q: Zahid donated P500,000 to a religious institution. During the year, the total receipts from…
A: The gift was not exempted because the administrative expenses of the donee-institution exceeded 30%…
Q: Under Lennon Hospital's rate structure, it earned patient service revenue of $9 million for the year…
A: Service revenue refers to the company's revenues from the services it delivers to its customers.…
Q: For the summer session of 20X1, Armando University (AU), a non-profit organization, assessed its…
A: Non-profit organizations do not earn any profits for its owners. A nonprofit organization is a…
Q: private not-for-profit entity is working to create a cure for a deadly disease. The charity starts…
A: 1. Prepare a statement of activities for this not-for-profit entity for this year.
Q: Alpha Hospital, a nongovernmental not-for-profit organization, has adopted an accounting policy that…
A: Not-for-profit organization: Not-for-profit organization provides services to society/community with…
Q: What amount of the $400,000 donation is OCC allowed to deduct for tax purposes in 2021, what is the…
A: In accordance with the taxation, the net operating loss is deductible from the ordinary income…
Q: On January 1, 20x1, Entity A receives a financial aid from the government amounting to ₱1M as…
A: SOLUTION- EXPLANATION- GRANT RECEIVED OR RECEIVABLE AS A COMPENSATION FOR LOSSES ALREADY INCURRED…
Q: ABC Hospital, a private non-profit hospital, has gross receipts of P19,000,000,00 with a cost of…
A: ABC Hospital which is a private non profit hospital states that, 1. Related activities : Gross…
Q: Taxpayer: Domestic Corporation engaged in manufacturing business Taxable period data: Item IN…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Norte De University, a proprietary educational institution, has the following selected information…
A: Tax:-A tax is the compulsory payment which is imposed by the government on income or capital gain of…
Q: Jimmy Corporation had the following income and expenses during the current year: Gross receipts…
A: As per IRS, any corporation’s charitable contribution limit modified taxable income is its taxable…
Q: Fish, Inc., an exempt organization, reports unrelated business income of $500,000 (before any…
A: UBTI stands for Unrelated business taxable income which is defined as the income generated regularly…
Q: A voluntary health and welfare entity receives $32,000 in cash from solicitations made in the local…
A: Not for profit organizations: The business entities whose motive of the business is not to reap…
Q: Tabuk Provincial Hospital, a state hospital, set up a milk storage facility at a total costs of P…
A: Allowable deductions refers to the deductions that are related to business directly and these are…
Q: dlePH accepted several office equipment from a stockholder which originally costed the donor…
A: Solution Concept When the asset is donated to the company ,in such case it shall be recorded as…
Q: In 2021, LAA Incorporated made a charitable donation of $151,500 to the American Red Cross. For the…
A: The charitable contribution deduction for the year is restricted to a maximum of = 10 percent of…
Q: A local private not-for-profit health care entity incurred the following transactions during the…
A: Journal Entry: A journal entry is made for a financial transaction of an entity and it is recorded…
Q: The following items of gross income are exempted from taxation, except: A.Revenues of a non-stock…
A: Analysis of Option Option A: Incorrect Reason: Non profit organisation: These are the…
Q: Accardo Corpration reports $2,058,000 gross profit and $1,352,000 in operating expenses. The…
A: “Since you have posted multiple questions, we will be answering only the first question. In order to…
Q: Kiss Co. donated inventory with an adjusted basis of $50,000 and a $78,000 fair market value to a…
A: Solution:- Given, Kiss Co. donated inventory adjusted basis of $50,000 and a $78,000 fair market…
Q: . Tax due
A: Definition: Non Profit Hospitals: These hospitals are mainly charitable organizations . They…
Q: A private not-for-profit entity is working to create a cure for a deadly disease. The charity starts…
A: Not-for Profit Organization: A not for profit organization is a business type operated by…
Q: were restricted for research activities. During the year ended June 30, 20X9, $90,000 of the…
A: Given Unrestricted 500,000 Temporarily restricted 100,000 Permanently…
Q: For the summer session of 20X1, Armando University (AU), a non-profit organization, assessed its…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Palestine College, a not-for-profit institution, engaged in the following transactions during its…
A: Palestine College, a non profit institution Fiscal year ending 30.06.2018 1. College collected…
Q: A non-profit university assessed its students P2,000,000 in tuitions and fees for the semester.…
A: It is assumed that the non-profit university follows the method of…
Q: For each of the following organizations, determine its UBTI and any related UBIT. a. AIDS, Inc., an…
A: (a) UBTI for A inc., is equal to net income-Deduction UBTI =$305,000-$1,000 =$304,000…
Q: 1. For the summer session of 20X1, Armando University (AU), a non-profit organization, assessed its…
A: Hi student Since there are multiple questions, we will answer only first question.,
Q: Theresa Johnson does volunteer work for a local not-for-profit entity as a community service. She…
A: Unrestricted Net Assets: It refers to donations to any non-profit organisation that can be…
2. ABC Hospital, a private non-profit hospital, has gross receipts of
P19,000,000,00 with a cost of P6,000,000,00 and allowable deductions of
P3,250,000.00 from related activities, while for its unrelated activities, it incurred
P5,000,000.00 and P2,000,000.00 as cost of sales and allowable deductions,
respectively, with a gross receipts of P18,000,000,00, for Calendar Year 2021.
Tax due is:
Step by step
Solved in 2 steps
- ABC Hospital, a private non-profit hospital, has gross receipts ofP19,000,000,00 with a cost of P6,000,000,00 and allowable deductions ofP3,250,000.00 from related activities, while for its unrelated activities, it incurred P5,000,000.00 and P2,000,000.00 as cost of sales and allowable deductions, respectively, with a gross receipts of P18,000,000,00, for Calendar Year 2021. Compute for the Tax dueIntegrity Reconstructive is a private, not-for-profit hospital. The following information is available about the operations. Gross patient services charges totaled P4,500,000. Included in the above revenues are: charity services, P165,000; contractual adjustments, P400,000; and courtesy allowances, P14,000. Received marketable securities valued at P115,000 for the purchase of new diagnostic equipment. The marketable securities were sold for P124,000 and diagnostic equipment was purchased at a cost of P138,000. Revenue from the hospital gift shop was P31,000 and from the cafeteria revenues were P160,000. Incurred and paid nursing service costs of P1,000,000 and general service costs of P500,000. How much is the net patient service revenue?Integrity Reconstructive is a private, not-for-profit hospital. The following information is available about the operations. Gross patient services charges totaled P4,500,000. Included in the above revenues are: charity services, P165,000; contractual adjustments, P400,000; and courtesy allowances, P14,000. Received marketable securities valued at P115,000 for the purchase of new diagnostic equipment. The marketable securities were sold for P124,000 and diagnostic equipment was purchased at a cost of P138,000. Revenue from the hospital gift shop was P31,000 and from the cafeteria revenues were P160,000. Incurred and paid nursing service costs of P1,000,000 and general service costs of P500,000. How much will be reported as excess of revenues over expenses in the hospital’s statement of operations?
- Qalvin, a large non-profit non-stock school has a gross income of P4,000,000, only 40% of which was contributed by related activities and total expenses of P 3,000,000, 50% of which was incurred in connection with non-related activities. Compute the income tax due assuming Qalvin is a non-profit hospital.St. Matthew Hospital, a private 40-bed hospital in Bataan province, presented the following data for the taxable year, 2018: Gross receipts from patients and laboratory 5,000,000.00 ;Income earned from unrelated activities 1,500,000.00 ; Total hospital expenses 2,300,000.00. What is the rate of unrelated activity income to St. Matthew Hospital's gross income? Determine the income tax liability of St. Matthew Hospital.A not-for-profit medical center performs services in the current year at a charge of $1 million. Of this amount, $200,000 is viewed as charity services because no collection was expected at the time of the work. The direct costs of that work were $80,000 and the indirect costs were $50,000. What amount of these costs has to be disclosed? Choose the correct.a. $50,000b. $80,000c. $130,000d. $280,000
- 1. A not-for-profit hospital performs services in the current year at a charge of $1 million. Of this amount, $200,000 is viewed as charity care services because no collection was expected at the time of the work. Additionally, officials expect another $94,000 to be bad debts. What should the hospital report as net patient service revenues? Select one: a.$906,000 b.$1,000,000 c.$706,000 d.$800,000 2. In the accounting for health care providers, what are third-party payors? Select one: a.Friends and relatives who pay the medical costs of a patient. b.Doctors who reduce fees for indigent patients. c.Insurance companies and other groups that pay a significant portion of the medical fees in the United States. d.Charities that supply medicines to hospitals and other health care providers. 3.What is a contractual adjustment? Select one: a.A year-end journal entry to recognize all of a health care entity's remaining receivables. b.An increase in a patient's…A not-for-profit medical center performs services in the current year at a charge of $1 million. Of this amount, $200,000 is viewed as charity services because no collection was expected at the time of the work. The direct costs of that work were $80,000 and the indirect costs were $50,000. What amount of these costs has to be disclosed? $50,000 $80,000 $130,000 $280,000A non-profit domestic hospital has the following data during the year 2x18: Gross income from hospital operation P2,000,000 Operating Expenses (excluding depreciation for the new hospital building) 500,000 Rent income of commercial space, hospital ground floor, net of 5% withholding taxes 190,000 Interest on bank deposit, net of 20% withholding tax 40,000 Dividend income from a domestic corporation 100,000 An additional hospital building was built and finished on June 30, 2X18 at the cost of P4,000,000 with a depreciable life of 25 years. a. Compute the income tax still due and payable in 2X18. b. Assume the hospital was organized for profit, compute the income tax still due and payable in 2X18.
- Qalvin, a large non-profit non-stock school has a gross income of P4,000,000, only 40% of which was contributed by related activities and total expenses of P 3,000,000, 50% of which was incurred in connection with non-related activities. Compute the income tax due assuming Qalvin is a non-profit charitable institution.Pamela One donated a total amount of P500,000, 1/2 to the Makati City Hall and 1/2 to a charitable institution Home for the Aged. Upon inquiry, it was verified that the charitable institution's total receipts from donations amounted to P10 million. Its total administrative expenses reached P5 million. How much can Pamela One claim as total allowed deductions from the above donations?During the year ended December 31, 2017, Anderson Hospital (operated as a private not-for-profit entity) received and incurred the following:Fair value of donated medicines . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . $ 54,000Fair value of donated services (replaced salaried workers) .. . .38,000Fair value of additional donated services (did not replace salaried workers) . . . 11,000Interest income . . . . . . . . . . . . . 23,000Regular charges to patients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176,000Charity care . . . . . . . . . . . . . . . 210,000Provision for bad debts . . . . . . 66,000How should this hospital report each of these items?