Ahmed withdrew 10,000 dinars for the purpose of paying personal expenses to him. This will lead to Capital increase decrease in liabilities Liabilities increase Capital decrease
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- Virginia has business property that is stolen and partially destroyed by the time it was recovered. She receives an insurance reimbursement of $6,000 on property that had a $14,000 basis and a decrease in market value of $10,000 due to damage caused by the theft. What is the amount of Virginia's casualty loss? $14,000 $8,000 $10,000 $4,000 None of the aboveLO.2 In 2019, the taxpayer became ineligible to use the cash method of accounting. At the beginning of the year, accounts receivable totaled 240,000, accounts payable for merchandise totaled 80,000, and the inventory on hand totaled 320,000. What is the amount of the adjustment due to the change in accounting method?Hoang Nguyen, a resident taxpayer, had the following receipts and balances during the2018/19 tax year. Ignore GST.Receipts related to business as a plumber:Receipts from debtors $ 172,000Cash Sales 15,000Volume rebates from suppliers 3,000Insurance recovery for loss of income(Hoang spent 2 weeks in hospital following a work accident) 7,000Hoang also had the following balances relating to his business:Debtors as at 30 June 2018 19,000Debtors as at 30 June 2019 27,500Receipts related to rental property in Brisbane:Rent received from tenants during the year 12,000Water rates recovered from tenants 600Balances relating to rental property in Brisbane:Rent received in advance as at 30 June 2018 1,300Rent outstanding from tenants as at 30 June 2019 2,000Tenant’s bond held by Rental Bond Board 1,200Total deductions from business and rental property 132,000PAYG tax instalments paid by Hoang during the year 21,000Calculate Hoang’s taxable income for the 2018/19 tax year.
- Patrick was injured in a vehicular accident in 2018. He incurred and paidmedical expenses of P10,000 and legal fees of P5,000 during that year. In 2016,he recovered P35,000 as settlement from the insurance company which insuredthe car owned by the other party involved in the accident. The taxable income in2019 is a. 20,000b. 30,000c. 0d. 25,000Pat invites Tin to join him in his business. Tin agreed that the following adjustments are taken up in the books of Pat Prepaid expenses of P 10,000 and accrued expenses of P6,000 are to be recognized. Allowance for doubtful accounts on Pat's accounts receivable shall be increased by P10,000. Pat's capital before adjustment for the above items was P405,000. Tin will invest enough cash to make her equal to 60%. How much is Pat's adjusted capital balance?Lou incurred the following business expenses during the year: Penalty for breach of business contract $3,200 State sales tax penalty for late remittance $2,500 Rent expense $6,000 Office supplies $450 Early withdrawal penalty on investment account at a savings and loan $185 What are Lou’s allowable current-year deductions? A. $6,635 B. $9,835 C. $12,150 D. $12,335
- Pat invites Tin to join him in his business. Tin agreed that the following adjustments are taken up in the books of Pat: Prepaid expenses of P 10,000 and accrued expenses of P6,000 are to be recognized. Allowance for doubtful accounts on Pat's accounts receivable shall be increased by P10,000. Pat's capital before adjustment for the above items was P405,000. Tin will invest enough cash to make her equal to 60%. How much should Tin invest to give her a 60% equity or capital of the firm?Joshua was sideswiped by Vernon in a vehicular accident on June 1, 2022. Consequently, he incurred and paid medical expenses of PHP 400,000 and legal fees of PHP 200,000 during the year. During the following month, he accepted the settlement offered by Vernon amounting to PHP 800,000. How much is the amount of income taxable to Joshua in 2022 0 800,000 100,000 200,000Last year, lana purchased a $100,000 account receivable for $90,000. During the current year, Lucy collected $97,000 on the account. What are the tax consequences to Lucy associated with the collection of the account receivable? No subsequent collections are expected. a.$7,000 gain b.$3,000 loss c.$13,000 loss d.$2,000 gain
- Palmon is indebted to Pai Chan. Due to his inability to pay the debt, Palmon was asked to clean the piggery of Pai Chan for three months. Thereafter, Pai Chan gave Palmon P5,000 and condoned the debt amounting to P10,000. How much income should be declared by Palmon?Nicanor left the following bank deposits upon his death: Uno Bank- Php 1,000,000 Dos Bank Php 2,000,000 Tri Bank - Php 3.000.000 a. How much is the amount to be reported as part of gross estate assuming the heirs of Nicanor opted for final tax? b. How much is the final tax required to be withheld by the bank assuming the heirs will opt for final tax? c. How much is the estate tax?As of May 31, 2020, Mr. Michael Kors has a capital balance of P 235,000. During the month of June, he withdrew P15,000 to be used for his annual medical checkup. His company’s Statement of Comprehensive Income reveals various expenses totaling P 89,000 thereby a Net Loss of P 7,150. During the same period, he was unable to pay a note amounting to P 50,000. How much would be the capital balance of Mr. Michael Kors at the end of June, 2020?
