Effective Tax
Q: at type of tax. ommon carrier's tax value added tax
A: Taxes are the legal obligation of a individual or a corporation towards the government. They are the…
Q: Explain how a change in tax rates affects the measurement of deferred tax amounts.
A: Deferred Tax Asset Items on a company's balance sheet that may be used to reduce taxable income in…
Q: Define Effective tax rate.
A: Tax: Tax refers to a compulsory payment or a contribution to the state revenue, levied by the…
Q: A. Explain why General Consumption Tax (GCT) is considered a Value Added Tax.
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer one sub-part at a…
Q: Define tax effect theory
A: Tax effect theory explains the impact of taxes on revenue or expense of a company. This theory is…
Q: what is the possible tax implication?
A: Corporate tax rate = 25% Allowable deductions = P150,000 for November Allowable deductions =…
Q: Define Deferred tax asset.
A: Items on a company's balance sheet that may be used to reduce taxable income in the future are…
Q: explain what constitute the variables of tax planning
A: There are mainly four variables upon which tax consequence of all the transactions depended: These…
Q: HOW TO improve tax-planning effort
A: Tax planning is the examination of a financial condition or plan to make sure that all parts work…
Q: what are the characteristics of a good tax system?
A: Tax system is designed by the government of every country which is imposed on the individual’s…
Q: Define intrapreriod tax allocation.
A: Income tax: Income tax refers to the direct tax levied on individual person or business and…
Q: What is the difference between tax reliefs and tax credits?
A: Taxes are mandatory payments placed on individuals or businesses by a government agency, whether…
Q: Explain the Revenue Related to Deferred Tax Liabilities.
A: Deferred tax liability is explicitly made when an expense commitment gathered in one budgetary year…
Q: How are deferred tax assets and deferred tax liabilitiesreported on the balance sheet?
A:
Q: What is deferred tax?
A: Balance sheet is the statement that indicates the final position of an entity.
Q: What are the different type of income tax?
A: The answer for the question on the different types of income tax is discussed hereunder : Taxes are…
Q: What is a deferred tax asset and how is the value created?
A: Deferred tax asset: When Income Tax Expense account is more than the Income Tax Payable account,…
Q: Value added tax i
A: It is pertinent to value-added tax is calculated on the value addition made at each point in a…
Q: What are the Sources of Tax Laws?
A: Tax: It is a mandatory fee levied by the government on the individual and organization.
Q: Explain the difference between tax reliefs and tax credits
A: Taxes are mandatory payments placed on individuals or businesses by a government agency, whether…
Q: Explain the term tax & its objectives in detail
A: What is Tax ? Tax is A mandatory Payment to be made by the people including Corporate Entities to…
Q: How does the disposition effect impact investor tax?
A: Introduction: The disposition effect is coined by economists Hersh Shefrin and Meir Statman in a…
Q: How are deferred tax assets and deferred tax liabilities reported on the statement of financial…
A: Deferred tax accounts has to be reported on the balance sheet of a business. It must be classified…
Q: What are the distinctions between deferred tax assets and deferred tax liabilities?
A:
Q: Discuss the importance or role of taxes in decision
A: The Government of each nation expects financing to help it in doing its important capacities and…
Q: Explain progressive tax
A: Introduction: Tax is nothing but a compulsory fee or financial charge imposed on a person or on…
Q: deferred tax asset and deferred tax liability
A: Deferred tax is the tax arises due to the differences between accounting income and taxable income.…
Q: What is the resort's net income for tax purposes?
A: Safe haven wildlife resort operate a proprietors-ship that generate $20000 in income under GAAP.…
Q: e tax due
A: Definition: Tax Liability : Debt which is owed to tax authorities. that amount is considered as tax…
Q: What is a deferred tax asset?
A: Deferred tax asset: When the Income Tax Expense account is more than the Income Tax Payable account,…
Q: Define Deferred tax liability.
A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…
Q: What Is A Deferred Tax Liability And What Is Its Purpose?
A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…
Q: What is a deferred tax liability?
A: Deferred tax liability arises due to the difference in the amount of accounting income and taxable…
Q: How do you calculate State Tax? How do you calculate FICA Tax
A: State tax: State income tax is a direct tax. State tax is levied by a state in the state the…
Q: Is the local property tax a regressive tax, or a progressive tax?
A: Progressive Taxes: Taxes that require high income groups to pay a larger percentage of income in…
Q: Proportional Tax- Progressive Tax- Regressive Tax- Estate Tax- Gift Tax-
A: Tax is the amount which is paid by every type of person to the government and which is used by the…
Q: Define Deferred Tax Liabilities.
A: Definition: Income tax expense: The expenses which are related to the taxable income of the…
Q: How are deferred tax assets classified as current or non-current on the balance sheet?
A: As per U.S. GAAP the companies that classifies its balance sheet, need to divide deferred taxes into…
Q: Under what conditions can deferred tax assets be offset against deferred tax liabilities?
A: Deferred tax assets (DTA) is stated under the head of non- current assets whereas deferred tax…
Q: current tax and deferred tax.
A: First option is wrong because deferred tax expense does not include current tax. Third option is…
Q: What is the burden of the tax? Explain the key factors that determine the incidence of the tax.
A:
Q: Explain the federal estate tax.
A: Federal Estate Tax: A tax on the transfer of property after death is called Estate tax. Federal…
Q: what is the special consumption tax?
A: Consumption can be briefly defined as the spending by individuals and households on final goods and…
Q: How are deferred tax assets and deferred tax liabilities classified and reported in the financial…
A: Deferred tax asset is the balance sheet item, which results from the advance or overpayment payment…
Q: Federal income tax withholding = $
A: Answer: Federal income tax withholding: An employer should withhold an estimate amount from employer…
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- In each of the following problems, identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you identify. Ariel has worked for Sander Corporation for 30 years. Sander has a pension plan in which it matches employee contributions by up to 5 percent of the employees salary. Ariel, who is single, retires during the current year when she is 66 years old. Her pension plan contains payments and earnings of 300,000, half of which are attributable to payments made by Ariel and half attributable to payments made by Sander. Under the plan, Ariel is to receive 2,000 per month until she dies.Brad and Angie are married and file a joint return. For year 14, they had income from wages in the amount of 100,000 and had the following capital transactions to report on their income tax return: What is the amount of capital loss carryover to year 15? a. (155,000) b. (152,000) c. (132,000) d. (125,000)Leroy and Amanda are married and have three dependent children. During the current year, they have the following income and expenses: Salaries 120,000 Interest income 45,000 Royalty income 27,000 Deductions for AGI 3,000 Deductions from AGI 9,000 a. What is Leroy and Amandas current year taxable income and income tax liability? b. Leroy and Amanda would like to lower their income tax. How much income tax will they save if they validly transfer 5,000 of the interest income to each of their children? Assume that the children have no other income and that they are entitled to a 1,050 standard deduction.
- Sheila, a single taxpayer, is a retired computer executive with a taxable income of 100,000 in the current year. She receives 30,000 per year in tax-exempt municipal bond interest. Adam and Tanya are married and have no children. Adam and Tanyas 100,000 taxable income is comprised solely of wages they earn from their jobs. Calculate and compare the amount of tax Sheila pays with Adam and Tanyas tax. How well does the ability-to-pay concept work in this situation?Shelly has 200,000 of QBI from her local jewelry store (a sole proprietorship). Shellys proprietorship paid 30,000 in W-2 wages and has 20,000 of qualified property. Shellys spouse earned 74,400 of wages as an employee, they earned 20,000 of interest income during the year, and they will be filing jointly and using the standard deduction. What is their QBI deduction for 2019?Calculate the 2019 tax liability and the tax or refund due for each situation: a. Mark is single with no dependents and has a taxable income of 60,000. He has 9,200 withheld from his salary for the year. b. Harry and Linda are married and have taxable income of 60,000. Harry has 4,250 withheld from his salary. Linda makes estimated tax payments totaling 3,000. c. Aspra is single. His 20-year-old son, Calvin, lives with him throughout the year. Calvin pays for less than one-half of his support and his earned income for the year is 3,000. Aspra pays all costs of maintaining the household. His taxable income is 60,000. Aspras withholdings total 7,800. d. Randy and Raina are married. Because of marital discord, they are not living together at the end of the year, although they are not legally separated or divorced. Randys taxable income is 25,000, and Rainas is 60,000. Randy makes estimated tax payments of 3,500, and Raina has 7,500 in tax withheld from her salary.
- Bonnie is married and has one child. She owns Bonnies Rib Joint, which produces a taxable income of approximately 120,000 per year. a. Assume that Bonnies taxable income is 40,000 without considering the income from the rib joint. How much tax will she pay on the 120,000 of income from the rib joint? b. You work for the firm that prepares Bonnies tax return. Bonnie has asked the partner for whom you work to advise her on how she might lower her taxes. The partner has assigned you this task. Draft a memorandum to the partner that contains at least two options Bonnie could use to lower her taxes. For each option, explain the calculations that support the tax savings from your recommendation.Troy, a cash basis taxpayer, is employed by Eagle Corporation, also a cash basis taxpayer. Tray is a full-time employee of the corporation and receives a salary of 60,000 per year. He also receives a bonus equal to 10% of all collections from diems he serviced during the year. Determine the tax consequences of the following events to the corporation and to Troy: a. On December 31, 2019, Troy was visiting a customer. The customer gave Troy a 10,000 check payable to the corporation for appraisal services Troy performed during 2019. Troy did not deliver the check to the corporation until January 2020. b. The facts are the same as in part (a), except that the corporation is an accrual basis taxpayer and Troy deposited the check on December 31, but the bank did not add the deposit to the corporations account until January 2020. c. The facts are the same as in part (a), except that the customer told Troy to hold the check until January 2020 when the customer could make a bank deposit that would cover the check.Otto and Monica are married taxpayers who file a joint tax return. For the current tax year, they have AGI of $80,300. They have excess depreciation on real estate of $67,500, which must be added back to AGI to arrive at AMTI. The amount of their mortgage interest expense for the year was $25,000, and they made charitable contributions of $7,500. If Otto and Monica's taxable income for the current year is $47,800 determine the amount of their AMTI. _______________________________________________________________________