How much of the following is gross income subject to income tax? * Description Amount Cancellation of indebtedness for services rendered Actual damages for cost of inventories lost Inheritance Gain on illegal business Gain on gambling activities P30,000 500,000 200,000 700,000 560,000
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Q: How much of the following is gross income subject to income tax? *
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Q: 1. How much is the tax due on a taxable income of P150,000 a. 0 b. 1,250 c. 50,000 d. 30,000
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Q: 9. One of the following is not subject to income tax - a. Winnings in jueteng. b. Bribe given to a…
A: Income tax is the amount of tax which is paid by the persons on their income to the government.
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- 1.Whatare the conditions under Income Tax Act, ACT 896 forexpenditure to be allowed as a deduction when computingbusiness, employment or investment income?2.List5 allowable deductions from the assessable income3.Assumethat the written down value of assets in the pool 2 isGH 100 000 and the repairs and improvements is GH 20 000What will be the tax allowable expenses?4.Giventhat the assessable income for the company isGH 140 000 the finance cost is GH 90 000 and there is nocorresponding finance gain, what is the allowable expense?1. Indicate whether the following expenditures are trade or business deductions (T), production of income deductions (PI), personal deductions (P), or are not deductible (X). Also indicate if the deductible expenditures are deductible “for” or “from” AGI. a. Interest expense on business loan b. Expenses incurred in an activity lacking a true profit motive (i.e., a hobby activity) c. Commuting expenses of individual taxpayer d. Rent payments paid by an illegal gambling business e. Payment by a business to bribe a government official1. Which of the following is not deductible from gross income? a. Transportation expense from the main office to the branch b. Transportation expense from home to the office and from the office back to home c. Travel expenses on business trips d. Travel expenses while away from home in the pursuit of trade, business or profession. 2. Examples of taxes that are deductible except: a. Occupation tax b. Privilege tax c. Documentary stamp tax d. Philippine income tax
- FGH Corporation had the following in 2021: Sales P 3.4M; Cost of sales P 1.2M; Admin expense P 0.3M; Selling expenses P .5M; other taxable income from operations P .1M. 1. What is deductible expense if the company uses OSD? 2. Using the problem above, what is the income tax payable?A business registered as a barangay micro business enterprise received P400,000 in gross income from sales, domestic dividend income of P9,000 and interest income on deposits of P6,800. Compute the total exclusion in gross income for purposes of computing regular income tax. P400,000 P415,800 P15,800 P 0Th e following information pertains to Entiguan Sports, a hypothetical developer ofproducts used to treat sports-related injuries. (Th e treatment of items for accountingand tax purposes is based on fi ctitious accounting and tax standards and is not specifi cto a particular jurisdiction.) Calculate the tax base and carrying amount for each item.1 . Dividends receivable : On its balance sheet, Entiguan Sports reports dividends of €1million receivable from a subsidiary. Assume that dividends are not taxable.2 . Development costs : Entiguan Sports capitalized development costs of €3 millionduring the year. Entiguan amortized €500,000 of this amount during the year. Fortax purposes amortization of 25 percent per year is allowed.3 . Research costs : Entiguan incurred €500,000 in research costs, which were all expensedin the current fi scal year for fi nancial reporting purposes. Assume that applicable taxlegislation requires research costs to be expensed over a four-year period rather…
- FGH Corporation had the following in 2021: Sales P 3.4M; Cost of sales P 1.2M; Admin expense P 0.3M; Selling expenses P .5M; other taxable income from operations P .1M. What is deductible expense if the company uses OSD?* a. 920,000 b. 1,360,000 c. 880,000 d. 800,000 Using the problem above, what is the income tax payable?* a. 330,000 b. 375,000 c. 575,000 d. 525,000Which of these is reported on Schedule M-1, Reconciliation of Income (Loss) per Books With Income (Loss) per Return? $347 of royalties reported on the books this year and included on Schedule K. $673 of foreign taxes paid reported on the books this year and included on Schedule K. $1,234 of ordinary dividend income included on Schedule K and recorded on the books this year. $1,679 of capital gain from the sale of collectibles included on Schedule K and not recorded on the books this year.identify deferred tax assets/liabilioties in the following figure Total Current Assets - - - - Total Assets 1057734 1014060 979868 976502 Cash & Due from Banks 96610 81786 73246 65619 Other Earning Assets, Total 144765 123145 118007 118805 Net Loans 759118 742473 737033 727002 Property/Plant/Equipment, Total - Net 5468 5602 5205 2383 Property/Plant/Equipment, Total - Gross - - - - Accumulated Depreciation, Total - - - - Goodwill, Net 5269 5284 5997 5974 Intangibles, Net 1674 1660 1732 1991 Long Term Investments 2865 3034 3054 3001 Other Long Term Assets, Total 4139 3830 3098 18226 Other Assets, Total 37826 47246 32496 33501 Total Current Liabilities - - - - Total Liabilities 982736 942052 908766 906908 Accounts Payable 9826 13188 9998 10285 Payable/Accrued - - - - Accrued Expenses - - - - Total Deposits 750843 701551 666300 640311 Other Bearing Liabilities, Total - - - 32 Total Short Term Borrowings 26633 16877 20346 19099…
- Assume that The Bell Company operates in an industry for which NOL carryback is allowed. The Bell Company had the following operating results: Year Income (loss) Tax rate Income tax 2018 40,000 25 % 10,000 2019 40,000 25 % 10,000 2020 50,000 30 % 15,000 2021 (130,000 ) 30 % 0 What is the income tax refund receivable? A) $27,000. B) $24,000. C) $25,000 D) $21,000.RIGHT OR WRONG For taxation purposes, the house and lot as family home of taxpayer is his ordinary asset. When inventory of goods are sold at price lower than cost, the seller has capital loss. When production machine of the business is sold at a mark up on cost, the seller has ordinary business income. When personal valuable necklace of the taxpayer is stolen, the taxpayer has capital loss. Capital gain tax is an income tax. The mark up on the sale of an equipment used in business activities is reportable in 1701 tax return of the sole owner of such business. 7. The sole proprietor sold for P500,000 its inventory with carrying cost of P400,000. The sale will result to BUSINESS INCOME OF 100k CAPITAL GAIN OF 100k BUSINESS INCOME OF 500k CAPITAL GAIN OF 500k 8. The investment in bond was sold by the resident citizen at mark up of P200,000 on carrying cost. If the bond has maturity of 5 years, the mark up on cost is EXEMPT FROM INCOME TAX TAXABLE INCOME BUSINESS INCOME…18. The following are examples of corporate expenses deductible from gross income, except one a. Expenses paid to an advertising firm in order to create a favorable image for the corporation b. Contribution to drum up business like contribution of softdrinks to barrio fiesta c. Premiums on life insurance covering the life of an employee if the beneficiary is his heir d. Representation expenses designed to promote business