Calculate the vehicle deduction for 2021 Income Tax purposes when the UCC on a class 10 vehicle was $22,000 at the end of 2019. The total vehicle expenses are $13,000.00 in 2021. In 2021 18,000km were driven for business, 12,000km were driven for personal use
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- Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000In 2019, Magenta Corporation paid compensation of 45,300 to the participants in a profit sharing plan. During 2019, Magenta Corporation contributed 13,200 to the plan. a. Calculate Magentas deductible amount for 2019. b. Calculate the amount of any contribution carryover from 2019.
- If 15,000 miles were used in 2022 for business travel and the expenses in 2022 for business-related travel were $8,456, which deduction should a person take? (Use the standard deduction mileage reimbursement rate of 62.5 cents for the 2022 calculation). The standard deduction of $8,625. The actual expense (itemized) deduction of $8,456. The actual expense deduction of $8,625. The standard deduction of $9,375.Dixon Development began operations in December 2021. When lots for industrial development are sold, Dixon recognizes income for financial reporting purposes in the year of the sale. For some lots, Dixon recognizes income for tax purposes when collected. Income recognized for financial reporting purposes in 2021 for lots sold this way was $20 million, which will be collected over the next three years. Scheduled collections for 2022–2024 are as follows: 2022 $ 8 million 2023 10 million 2024 2 million $ 20 million Pretax accounting income for 2021 was $29 million. The enacted tax rate is 40%. Required:1. Assuming no differences between accounting income and taxable income other than those described above, prepare the journal entry to record income taxes in 2021.2. Suppose a new tax law, revising the tax rate from 40% to 35%, beginning in 2023, is enacted in 2022, when pretax accounting income was $24 million. No 2022 lot sales qualified for the special…Brookins Enterprises, a trucking company, purchased the following during 2019: New long-haul trucks costing $2,080,000, purchased September 23, 2020. How much is the maximum cost recovery deduction for 2019? Assuming they claimed the maximum in 2020, how much is deductible in 2023? Assuming the trucks were sold for $975,000 on September 23, 2023, how much is the 2023 cost recovery deduction? Answer the above questions if Brookins elects out of bonus depreciation and does not elect under §179. President’s used vehicle (2018 Subaru Ascent, an SUV weighing 6,001 pounds) costing $26,500. How much is the maximum cost recovery deduction for 2020, assuming the owners have adequate net income? Assuming they claimed the maximum in 2020, how much is deductible in 2022? Nonresidential real estate purchased for $875,000 ($165,000 assigned to land); placed in service May 18, 2020. How much is deductible in 2020? How much for 2029? How much for 2030 if the real estate is sold on January…
- Brookins Enterprises, a trucking company, purchased the following during 2019: New long-haul trucks costing $2,080,000, purchased September 23, 2020. How much is the maximum cost recovery deduction for 2019? Assuming they claimed the maximum in 2020, how much is deductible in 2023? Assuming the trucks were sold for $975,000 on September 23, 2023, how much is the 2023 cost recovery deduction? Answer the above questions if Brookins elects out of bonus depreciation and does not elect under §179. President’s used vehicle (2018 Subaru Ascent, an SUV weighing 6,001 pounds) costing $26,500. How much is the maximum cost recovery deduction for 2020, assuming the owners have adequate net income? Assuming they claimed the maximum in 2020, how much is deductible in 2022? Nonresidential real estate purchased for $875,000 ($165,000 assigned to land); placed in service May 18, 2020. How much is deductible in 2020? How much for 2029? How much for 2030 if the real estate is sold on January…ISKOLAR started constructing a building to be used for producing its goods in March 31, 2021. On January 1, 2021, ISKOLAR borrowed a loan to specifically finance the construction. The interest for the year amounted to P150,000, the Company also earned interest income of P30,000 for the year from its temporary placement of the proceeds from the specific borrowing. According to PAS23, how much borrowing cost should be capitalized by ISKOLAR in 2021?Dixon Development began operations in December 2021. When lots for industrial development are sold, Dixon recognizes income for financial reporting purposes in the year of the sale. For some lots, Dixon recognizes income for tax purposes when collected. Income recognized for financial reporting purposes in 2021 for lots sold this way was $12 million, which will be collected over the next three years. Scheduled collections for 2022–2024 are as follows: 2022 $ 4 million 2023 5 million 2024 3 million $ 12 million Pretax accounting income for 2021 was $16 million. The enacted tax rate is 25%. Required: Assuming no differences between accounting income and taxable income other than those described above, prepare the journal entry to record income taxes in 2021. Suppose a new tax law, revising the tax rate from 25% to 20%, beginning in 2023, is enacted in 2022, when pretax accounting income was $20 million. No 2022 lot sales qualified for the special…
- Madison’s nail salon had a revenue totaling $151,500 in 2019. That amount includes materials plus sales tax rate is 4.5% , what amount of money must Madison’s firm submit to the state for 2019’s sales.Subject:accounting Green Bank Corporation claimed $300,000 in Sec.179 epxense and $200000 in bonus depreciation in 2020 and the following is the remaining basis for each asset purchased in 2020 after applying Sec 179 and bonus depreciation: Desks and chairs purchasd on March remaining basis 150,000 and Computers purchased in April remaining basis 250000What is the TOTAL depreciation expense for the taxpayer in 2020?Bebe Co. purchased equipment costing P560,000 on March 5, 2021. How much would be the claimable input VAT on the second quarter of 2021?
