After working for 30 years and due to old age (55 years), Rufino retired from his employment on December 31, 2018 as a rank and file employee. As a consequence, he received the following: a. Salary, 300,000 b. Christmas gift, 10,000 c. Anniversary gift, 2,000 d. Loyalty award (tangible personal property), 15,000 e. Retirement pay, 750,000.
After working for 30 years and due to old age (55 years), Rufino retired from his employment on December 31, 2018 as a rank and file employee. As a consequence, he received the following: a. Salary, 300,000 b. Christmas gift, 10,000 c. Anniversary gift, 2,000 d. Loyalty award (tangible personal property), 15,000 e. Retirement pay, 750,000.
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 52P
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Question
After working for 30 years and due to old age (55 years), Rufino retired from his employment on December 31, 2018 as a rank and file employee. As a consequence, he received the following:
a. Salary, 300,000
b. Christmas gift, 10,000
c. Anniversary gift, 2,000
d. Loyalty award (tangible personal property), 15,000
e. Retirement pay, 750,000.
1. Based on the above data, the amount subject to tax is?
a. 327,000
b. 1,077,000
c. 312,000
d. 317,000
2. In the above problem, how much is Rufino's income tax due?
a. 15,400
b. None
c. 12,400
d. 13,400
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT