Gains and losses derived from sale or exchange of all capital assets are subject to capital gains tax of 6% based on selling price or fair market value, whichever is higher. TRUE OR FALSE?

Q: Compute the ordinary gain and the net capital gain subject to regular income tax. a. P480,000; PO b.…

A: Capital gains or ordinary gains can be defined as the gain that arises from the sale of an asset or…

Q: Eight independent situations are described below. Each involves future deductible amounts and/or…

A: Temporary difference refers to the difference between the carrying amount and tax base of an asset…

Q: If a corporation has $85,000 in taxable income, what is its taxliability? ($17,150)

A: A taxable income of $85,000 falls under the tax slab of $75,000 to $100,000 with a tax of $13,750…

Q: During the year 20x4, the Altomonte company presented a financial income before contributions of $…

A: Income tax payable  = Taxable income  × tax rate

Q: ass corporation as defined) with a 31 March 2022 year of assessment. Calculate the tax inv(loss) for…

A: Capital Gains/ Losses: When a company or individual sold or disposed off the capital assets more or…

Q: ounting profit before tax of Lindfield Ltd for the year as $150,000, including the following items…

A: Journal entries are those entries that include daily transactions or events and are stated in the…

Q: On November 1, 2018, Berry Corporation declared equipment as property dividend payable on February…

A: Before distribution of dividend in non cash form , asset should be brought to fair value through…

Q: Compute for the tax due (A,B,C) for the below taxable income based on the Income  Tax Tables:…

A: calculation of income tax due are as follows

Q: The tax due on the property is extracted from during Total annual revenue minus maintenance expenses…

A: Total annual revenue minus maintenance expenses  Net taxable revenue minus expenses  annual revenue…

Q: In its first year, Firm KZ recognized $427,300 ordinary business income and a $13,590 loss on the…

A: Deferred tax assets are represented on the asset side of the balance sheet. It reduces the tax…

Q: A, resident citizen, had the following data for 2018: Ordinary Taxable Income Gain from sale of…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: Lefty completes the following capital asset transactions. By how much does Lefty’s AGI increase as a…

A: Capital assets can be defined as any type of property held by an individual or an organization, that…

Q: A VAT-registered business makes a sale of P10,000, inclusive of  VAT. The VAT on the sale can be…

A: VAT:   VAT stands for Value Added Tax. It is a tax a customer is liable to pay on the goods or…

Q: USCo incurred $100,000 in interest expense for the current year. The tax book value of USCo’s assets…

A: Interest to be apportioned to foreign-source income = Interest Expense x % of Foreign source income

Q: Which of the following is not true about capital assets?

A: Capital Assets:- Capital assets are both movable and immovable properties, purchased by the company…

Q: Income tax is levied on all of the following taxable items except: O Wages O Interest and dividends…

A: Income tax is levied on Wages, Interest and dividends from moeny invested and Capital gains from…

Q: Parker Company identifies depreciation as the only difference for future taxable amounts. In Year 1,…

A: The deferred tax asset or liability is created out of timing difference. There may be some items…

Q: Cost-basis information for all sales transactions. Cost-basis information for all covered security…

A: Form 1099-B Proceeds from broker and barter Exchange. The information that is included in Forms…

Q: base. The tax rate is 30 per cent. What is the goodwill arising on the purchase of Lamina Co? *

A: Goodwill is the amount which occurs when the purchasing company pays more than the company from whom…

Q: Jin Company’s income tax return showed taxable income of P4,000,000 on which a tax liability of…

A: Taxable Income: P4,000,000 Accelerated Depreciation: P500,000 Financial Depreciation: P400,000…

Q: After tax cost of interest deals with the fact that interest is deductible for tax purposes.…

A: Interest expenses are the expenses which are related to borrowings raised by the company. The…

Q: Value-added tax shown in the deed of sale? Output value-added tax on May 5, 2018 col- lection?

A: VAT is the value added tax. It is the tax which is charged on the products or the services, it is a…

Q: Choose the correct. How does the amortization of tax-deductible goodwill affect the computation of a…

A: Statement a is not correct, amortization of goodwill is deductible even if the 80 percent share is…

Q: uring the 20x4 year, the Altomonte company presented a financial income before contributions of $…

A: Taxable Income refers to the amount of income or revenue earned by an entity or an individual in a…

Q: a.How much interest expense can CL deduct? b.How is the interest expense reported on CL’s Schedule…

A: Hi student Since there are multiple subparts, we will answer only first three sub parts. Given…

Q: The following information has been obtained for Tamarisk Corporation. 1.   Prior to 2020, taxable…

A: The bottom income statement starts with income before tax and it is adjusted by some additional…

Q: Sunshine Company has book income of $250,000. It also has tax depreciation in excess of book…

A: Depreciation are different in books of accounts and in income tax act. While calculating book profit…

Q: Beckett Corporation has nexus with States A and B. Apportionable income for the year totals…

A: Taxable income is defined as income on which the government imposes the tax and it involves all the…

Q: c. His $454,000 of taxable income includes $47,000 of long-term capital gain that is taxed at…

A: Solution:- Given, Henrich is a single tax payer Taxable Income = $454,000 His taxable income…

Q: If the property before tax cashflow (PBTCF) in a given year is $125,000, total debt service is…

A: The Equity after tax cash flow of the investor is that income after deducting all expenses and tax.

Q: 1. Prior to 2020, taxable income and pretax financial income were identical. 2. Pretax financial…

A: Pretax financial income = $1,359,000 Equipment Purchased = $1,260,000 Life = 5 years Depreciation on…

Q: The following facts relate to Concord Corporation. 1. Deferred tax liability, January 1, 2020,…

A: Solution a: Computation of Required balance and recognition of Deferred tax liability and…

Q: property at P 20,000,000. If Nicanor utilized P 8,000,000 of the proceeds of the sale in acquiring a…

A: Nicanor sold his rest house in Pangasinan for P 80,00,000. Now sale of property will attract a…

Q: Champ received a $27,600 distribution from NeatCo, a U.S. C corporation. NeatCo’s earnings and…

A: Taxable income is the amount of income that is used to calculate an individual's or a company's…

Q: Umasa Corporation reported the following information for the current year: Pretax financial income…

A: Taxable income = Pretax financial income - exempt income + rent received in advance - depreciation =…

Q: Corporation’s Retained Earnings at December 31, 2021 amounted to P2,000,000.  On that date, the…

A: The retained earnings are decreased with declaration of dividend to shareholders. The dividend can…

Q: The amount of net deferred tax asset/(liability) on January 1, 20x8 is  The amount of net deferred…

A: Step 1 Deferred taxes are the tax which is arises due to differences in between the accounting…

Q: On the basis of the data provided at Question 6, how much (in $) is the capital gain tax? O a. $…

A: A. Investment definition is an asset acquired or invested in to build wealth. A part of income is…

Q: CL LLC is a manufacturing business and reported taxable income of $40,000,000 before interest…

A: The question is based on the concept of buisness accounting.

Q: of which of the following items? Choose all that apply. A. real estate B. income C. stocks

A: A capital gain is an increase in the value of a capital asset realised when it is sold. Capital…

Q: What amount of the capital loss may Hector deduct in the current year in the following situations?…

A: A tax liability that is of the current period but yet had not been paid by the organization or…

Q: Paris Corporation holds a $100,000 unrealized net capital gain and a capital loss carryforward that…

A: A net capital loss is carried forward until the whole amount is exhausted.

Q: Amount in excess of P490,000.00 taxable income is to be multiplied to_______to compute for the…

A: Graduated tax refers to the income tax which adjusts in respect to the amount subject to taxation…

Q: At 30 June 20X3, the carrying amount of an asset is $100 000 and its tax base is $80 000. The tax…

A: Deferred tax asset  = (Carrying amount of an asset - tax base ) x tax rate

Q: P8.000,000 for the current year. The taxable income was P7,000,000 for the current year. The…

A: Tax expenses for a particular year is reported as :   CURRENT TAX DEFERRED TAX

Q: How is goodwill amortized? Multiple Choice It is not amortized for reporting purposes or for tax…

A: Goodwill: Goodwill is an intangible asset linked with the acquisition of one business by another.…