Problem 1 A company was not able to file and pay its 2015 annual income tax. As a result of this, it was liable for a surcharge penalty of P96,500. There was willful neglect on the non-compliance. Assume all the liabilities are paid today. How much is the total amount due, exclusive of the compromise penalty? * Select your answer 392,800 419,238 461,667 741,977

Problem 1 A company was not able to file and pay its 2015 annual income tax. As a result of this, it was liable for a surcharge penalty of P96,500. There was willful neglect on the non-compliance. Assume all the liabilities are paid today. How much is the total amount due, exclusive of the compromise penalty? * Select your answer 392,800 419,238 461,667 741,977

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter26: Tax Practice And Ethics

Section: Chapter Questions

Problem 22P

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Marmol Corporation uses the allowance method for bad debts. During 2019, Marmol charged 50,000 to bad debt expense and wrote off 45,200 of uncollectible accounts receivable. These transactions resulted in a decrease in working capital of: a. 0 b. 4,800 c. 45,200 d. 50,000
Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and taxable income for 2020. The prior period adjustment was the result of an error in calculating bad debt expense for 2019. The current tax rate is 30%, and no change in the tax rate has been enacted for future years. When the company applies intraperiod income tax allocation, the prior period adjustment will be shown on the: a. income statement at 12,000 b. income statement at 8,400 (net of 3,600 income taxes) c. retained earnings statement at 12,000 d. retained earnings statement at 8,400 (net of 3,600 income taxes)
A company was not able to file and pay its 2015 annual income tax. As a result of this, it was liable for a surcharge penalty of 96,500. There was willful neglect on the non-compliance. Assume all the liabilities are paid today. Question: 1. How much is the total amount due, exclusive of the compromise penalty?
A company was not able to file and pay its 2015 annual income tax. As a result of this, it was liable for a surcharge penalty of P96,500. There was willful neglect on the non-compliance. Assume all the liabilities are paid today. How much is the total amount due, exclusive of the compromise penalty?
1. Company ABC reports a loss of $80,000 in 2007. In the past when the firm incurred a loss they first carried the loss back as far as they could to receive a refund from the IRS, and then carry forward the remainder to be used to offset future income. Assume the past seven-years of taxable income are as follows (and further that they are not using the current (new) tax law enacted in November 2017 to account for NOLs): Year Income 2000 $50,000 2001 $30,000 2002 ($40,000) 2003 ($80,000) 2004 $30,000 2005 $50,000 2006 $30,000 Further assume that the current tax rate is 40% and is expected to decrease to 35% in the next period and remain at that rate for the foreseeable future. Finally, ABC is only able provide evidence that they will be able to earn $40,000 in the foreseeable future. What is the amount of the Net Operating Loss (NOL) that ABC will carry forward into the future? What is the DTA that ABC will record related to this NOL? What (if any) journal entry…
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Rich Goma Corporation failed to file its income tax return for the fiscal year ending August 31, 2021. On June 6, 2022, it filed an income tax return with a basic tax still due and payable for the fiscal year amounting to P500,000. Compute the interest penalty to be imposed by the BIR. P28,603 P45,873 P28,438 P46,207