How much is the gross income under cash basis?A taxpayer engaged in service business provides you with the following:DescriptionCollections from services rendered-currentBillings for revenues earned but uncollected20192020P600,000P800,000500,000200,000Collections from uncollected billings in 2019Collections from uncollected billings in 2020Advance collections for services not yet rendered470,00050,000300,000200,000O 2019:P1,400,000; 2020: P1,720,000O 2019: P1,370,000; 2020: P1,050,000O 2019: P1,100,000; 2020: P1,050,000O 2019: P900,000; 2020: P1,520,000

When talking about gross income under cash basis, it is the incomer received in cash whether it is…

Answered: How much is the gross income under cash…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

TPW, a calendar year taxpayer, sold land with a $535,000 tax basis for $750,000 in February. The purchaser paid $75,000 cash at closing and gave PW an interest-bearing note for the $675,000 remaining price. In August, PW received a $55,950 payment from the purchaser consisting of a $33,750 principal payment and a $22,200 interest payment. Required: a. Compute gain realized on the sale. b. Compute gain recognized in the year of sale if TPW elects not to use the installment sale method of accounting. Compute PW's tax basis in the note at the end of the year. c. Compute gain recognized in the year of sale if TPW uses the installment sale method of accounting. Compute PW's tax basis in the note at the end of the year.
How do you calculate the PVIFA for the equation: EAC = NPV / Annutiy factor How would you use the financial calculator to solve for EAC and PVIFA? You are evaluating two different silicon wafer milling machines. The Techron I costs $270,000, has a three-year life, and has pre-tax operating costs of $69,000 per year. The Techron II costs $475,000, has a five-year life, and has pre-tax operating costs of $36,000 per year. Both milling machines are in Class 8 (CCA rate of 20 percent per year). Assume a salvage value of $45,000. If your tax rate is 35 percent and your discount rate is 10 percent, compute the EAC for both machines. Which do you prefer? Why?
Karen , a Malaysian citizen and resident is a top scientist at Super Palm Oil Berhad. She is married to Jimmy and the couple has a year old baby boy. Karen 's employment income and other relevant details for the year of assessment (YA) 2020 are as follows: She was paid a monthly gross salary of RM200,000 Her employer deducted 11% from her salary in respect of her contributions to the employees provident fund (EPF). Karen was provided with a monthly child care allowance of RM1,200. She was entitled to an interest subsidy based on a loan of RM600,000 to buy a house in Ara Damansara. The interest subsidy received by Karen for the year RM82,000. She received a service excellence award of RM8,000. Karen 's employer incurred RM7,000 for her medical benefits under an employee's medical insurance scheme. As her work for the company was excellent, her employer provided a leave passage of RM5,000 to Sri Lanka during Chinese New Year. Her employer liquidated a pension scheme atter the…
Gg.107. John wants to have the financial ability to withdraw $80,000 per year forever beginning 30 years from now. If his retirement account earns 8% per year interest and dividends, what is the required balance in (a) year 29, and (b) year 0? please explain process
The maximum amount an individual can contribute to her Registered Retirement Savings Plan (RRSP) for a year is set from time to time by the Regulations of the Income Tax Act. For the year 2020, the maximum contribution is the lesser of $27,230 or 18% of the individual’s “earned income” during 2019. What is the maximum RRSP amount that can be contributed in 2020 based on an income of $128,500 in 2019?
37. Electronic Games is moving very quickly to introduce a new interrelated set of video games. The initial investment for equipment to produce the necessary electronic components is $9 million. The salvage value after 6 years is $700,000. Anticipated net contribution to income is $6 million the first year, decreasing by $1 million each year for 6 years, with all dollar amounts expressed in real dollars. Depreciation follows MACRS 5-year property, taxes are 40 percent, the real MARR is 18 percent, and inflation is 4 percent. d. Determine the FW of the after-tax cash flows. e. Determine the combined IRR of the after-tax cash flows. f. Determine the combined ERR of the after-tax cash flows.
urgent A firm can purchase a centrifugal separator (5-year MACRS property) for $17,000. The estimated salvage value is $4,000 after a useful life of six years. Operating and maintenance (O&M) costs for the first year are expected to be$1,700. These O&M costs are projected to increase by $500 per year each year thereafter. The income tax rate is 25% and the MARR is 13% after taxes. What must the uniform annual benefits be for the purchase of the centrifugal separator to be economical on an after-tax basis? The uniform annual benefits should be........... (Round to the nearest dollar.)
smallville is suffering annual losses of taxable properties and property values of 1% each. Even so, Smallville must maintain its tax collections at a constant value of $3.2 million to maintain services. What is the required rate of increase in the tax rate? NOTE: While smallville uses a rate of 6% for the time value of money, that rate is irrelevant to this problem. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Consider the following cash flows and calculate NPV. Year Cashflow 0 1,000,000 1 200,000 2 200,000 3 300,000 4 300,000 5 350,000 NB. Observe 2 decimal places
The coupon interest rate issued by Jordan Company on a 10-year bond is 10%, with a par value of BD1,000 and pays interest semi-annually. The required annual return expected by the company is 12%. Determine the bond’s value? a. BD700.00 b. BD650.60 c. BD885.30 d. BD1000.40
Pls do from c) to i)
Slate Corp is a merchandising company that uses the periodic inventory system. Balances Sales 500,000 Purchases 225,000 Inventory (beginning ) 16,000 Inventory (ending) 30,000 Operating expenses 148,000 Income tax expense 10,000 Retained earnings (beginning) 53,000 Dividends 15,000 What is the net income?

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS