If you are a tax adviser, would you advise to claim the deduction in full amount or be capitalized and depreciate?
Q: Among the highlights of train law, which do you think is advantageous for the taxpayer? Explain
A: Tax is the compulsory payment made by one person to its government.
Q: Which of the following would result in the recognition of deferred tax liabilities? Select one: A.…
A: DTT (Deferred tax liability) which is recorded in the balance sheet (BS) of company and it reports…
Q: Describe the difference between a tax credit and a tax deduction Which is more beneficial to the…
A: Tax Deduction/Credit Tax deductions lowers the amount of tax owed where as tax credit reduce the…
Q: What are the ethical responsibilities of the tax practitioner in dealing with tax evasion?
A: Tax evasion is a criminal crime in which a person or corporation intentionally avoids paying a…
Q: report expenses using correct tax categories because
A: The accountants have to report expenses under correct categories always.
Q: All employees are required by law to deduct an amount of tax know as
A: The individuals in United states enjoy medicare and social security schemes for which certain taxes…
Q: Income is taxable, unless specifically included in the IRS. What are some examples of tax…
A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs…
Q: What is an ‘exempt income’ and how does it affect the calculation or recovery of carry‐forward tax…
A: Any earning that is not subject to taxation is referred to as exempt income. Exempt income laws and…
Q: What are some of the effects of the crypto-related activities on an individual's tax payable?
A: Answer:- Cryptocurrency meaning:- A cryptocurrency is a kind of digital or virtual currency that is…
Q: Why is the Donor's tax is the advantageous for the taxpayer? Explain
A: Donar's tax refers to the tax on a donation or gift. It is imposed on the gratuitous transfer of…
Q: What types of income should not be classified as such on a tax return? Why shouldn't they be…
A: Answer Nontaxable income won’t be taxed, whether or not you enter it on your tax return. nontaxable…
Q: What is the difference between recognition and realization of a deferred tax asset?
A: A deferred tax asset is a balance-sheet item that decreases a company's taxable income in the…
Q: Give an idea or opinion on how to catch those practicing tax evasion.
A: In this question . we will explain that how to catch those practicing tax evasion.
Q: Describe some reasons why it is a good idea to file a tax return if you have earned income, even if…
A: If there is no tax liability, even then the Income-tax return (ITR) is mandatory to file if the…
Q: What is the principle behind IRS tax free or tax deferred transaction
A: An individual retirement account is a financial instrument created for people to save for their…
Q: true or false. The relationship between the donor and donee is taken into account in determining the…
A: Solution Donation made between business organization and those made between an individual and…
Q: Determine the types of payment made to non-resident person which is subject to withholding tax and…
A: Hi student Since there are multiple questions, we will answer only first question. If you want…
Q: current and future tax consequences of transactions accounted for
A: (Note: Since you have posted multiple questions, we will solve the first question for you. For the…
Q: Compute the additional tax due or refund they have when filing their tax return.
A: It has been given in the question that the withholding tax has been $11,000 and there is a gross tax…
Q: What Accounting periods and accounting methods available to individuals for tax purposes?
A: Internal Revenue Service (IRS) advises that each taxpayer (individual) must figure taxable income on…
Q: Explain further the steps in determining the income tax. Use the space provided for your answer.…
A: Tax is a charge which is levied on the taxable income of a taxpayer. A taxpayer has to pay the tax…
Q: How do taxpayers determine whether they should deduct their itemized deductions or utilize the…
A: How do taxpayers determine whether they should deduct their itemized deductions or utilize the…
Q: Question: What are the tax consequences to A and to B as a result of these transactions? Be sure to…
A:
Q: What are the ethical responsibilities of the tax practitioner in dealing with tax evasion?
A: Tax evasion is a criminal crime that occurs when a person or business willfully fails to pay a…
Q: How much is the income tax due under CREATE Law if the taxpayer is a domestic corporation?
A: Under CREATE Law if the taxpayer is a domestic corporation the tax rate will be 25% for large…
Q: how to calculate someones adjusted basis in tax
A: Adjusted basis refers to the amount of gain or loss earned on selling the property. It includes the…
Q: TRUE OR FALSE? If the carrying amount of a liability is higher than the tax base, the difference is…
A: The given statement is True...If the carrying amount of a liability is higher than the tax base, the…
Q: deferred tax asset and a deferred tax liability
A: Deferred tax asset refers to the items that were shown as a result of extra payment of taxes.…
Q: Which of the following accurately describes when a taxpayer may report capital gain/loss…
A: Capital Gain :— Sale or Transfer of Capital Assets on which Consideration is Involved resulting in a…
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: Discuss in detail the taxation of interest income. Which is subject to final tax? Which is subject…
A: Interest income- Interest income is the sum paid to a body for lending its funds or hire another…
Q: Is skepticism necessary for a tax agent? Alternatively, one's expert judgment may suffice
A: An audit is an examination of a company's financial records to determine whether or not they are…
Q: ll be a tax
A: Tax refers to the percentile charges imposed by the authoritative government over the income gained…
Q: What will be the effect after To complete a successful tax-deferred exchange for the investor?
A: Tax Deferred : It refers to the instances when the tax payer delays payment of tax for some future…
Q: The Commissioner
A: TRUE The power to interpret the provisions of this Code and alternative tax laws shall be beneath…
Q: RUE OR FALSE? Tax assessments made by the BIR must be in writing containing the law and facts as…
A: Taxation- Taxation refers to the imposition of a tax on persons and other types of organizations, as…
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: Are they entitled to a refund or do they owe additional taxes?
A: Tax Liability is the different company's taxable income as shown in the income statement and in…
Q: What is the burden of the tax? Explain the key factors that determine the incidence of the tax.
A:
Q: What is the maximum investment income a taxpayer is allowed to have and still be allowed to claim…
A: Investment income cannot be more than $3,500 for the 2018 tax year to claim the earned income…
Q: Explain what the benifit is to having tax classified under statutory income. Aside from capital…
A: Taxable income is the amount of income computed to measure the amount of taxes to be paid to the…
Q: May the taxpayer's liability to pay tax be a subject of set-off? Why?
A: May the taxpayer's liability to pay tax be a subject of set-off? Why?
Q: between refundable tax credits and non-refundable tax credits and which is more valuable
A: The amount of money that is allowed to be reduced from overall tax liability of taxpayer is known as…
If you are a tax adviser, would you advise to claim the deduction in full amount or be capitalized and
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- Superlor Developers sells lots for residential development. When lots are sold, Superior recognizes income for financial reporting purposes in the year of the sale. For some lots, Superior recognizes income for tax purposes when the cash is collected. In 2023, Superior sold lots for $110 million, for which no cash was collected at the time of the sale. This cash will be collected equally over 2024 and 2025. The enacted tax rate was 40% at the time of the sale. In 2024, a new tax law was enacted, revising the tax rate from 40% 10 30% beginning in 2025. Calculate the total amount by which Superior should change its deferred tax liabllity in 2024. Note: Enter your answer in millions rounded to 2 decimal places (i. e., 5,500,000 should be entered as 5, 50).What is the answer and how do you get the answer? Dixon Development began operations in December 2021. When lots for industrial development are sold, Dixon recognizes income for financial reporting purposes in the year of the sale. For some lots, Dixon recognizes income for tax purposes when collected. Income recognized for financial reporting purposes in 2021 for lots sold this way was $15 million, which will be collected over the next three years. Scheduled collections for 2022–2024 are as follows: 2022 $ 5 million 2023 7 million 2024 3 million $ 15 million Pretax accounting income for 2021 was $20 million. The enacted tax rate is 30%. Required:1. Assuming no differences between accounting income and taxable income other than those described above, prepare the journal entry to record income taxes in 2021.2. Suppose a new tax law, revising the tax rate from 30% to 25%, beginning in 2023, is enacted in 2022, when pretax accounting income was $17…Dixon Development began operations in December 2021. When lots for industrial development are sold, Dixon recognizes income for financial reporting purposes in the year of the sale. For some lots, Dixon recognizes income for tax purposes when collected. Income recognized for financial reporting purposes in 2021 for lots sold this way was $20 million, which will be collected over the next three years. Scheduled collections for 2022–2024 are as follows: 2022 $ 8 million 2023 10 million 2024 2 million $ 20 million Pretax accounting income for 2021 was $29 million. The enacted tax rate is 40%. Required:1. Assuming no differences between accounting income and taxable income other than those described above, prepare the journal entry to record income taxes in 2021.2. Suppose a new tax law, revising the tax rate from 40% to 35%, beginning in 2023, is enacted in 2022, when pretax accounting income was $24 million. No 2022 lot sales qualified for the special…
- Ibri municipality begun a park renovation and completed it during the year 2019, sources from the proceeds of a bond issue for the renovation of park RO 200,000, Transfer from general fund RO 100,000. In its 2019 capital projects fund, how much should report as revenue? a. RO 700,000 b. None of the options c. RO 500,000 d. RO 400,000Dixon Development began operations in December 2021. When lots for industrial development are sold, Dixon recognizes income for financial reporting purposes in the year of the sale. For some lots, Dixon recognizes income for tax purposes when collected. Income recognized for financial reporting purposes in 2021 for lots sold this way was $12 million, which will be collected over the next three years. Scheduled collections for 2022–2024 are as follows: 2022 $ 4 million 2023 5 million 2024 3 million $ 12 million Pretax accounting income for 2021 was $16 million. The enacted tax rate is 25%. Required: Assuming no differences between accounting income and taxable income other than those described above, prepare the journal entry to record income taxes in 2021. Suppose a new tax law, revising the tax rate from 25% to 20%, beginning in 2023, is enacted in 2022, when pretax accounting income was $20 million. No 2022 lot sales qualified for the special…On March 1, 2021, Jackie Company purchased a parcel of commercial land located in the LGU of Santo Cristo. The deed of absolute sale indicated a sales price at its fair market value of P1,800,000 plus the payment of the delinquent real property taxes for 2020 and 2021. The local government only imposes taxes indicated in the Local Government Code Assuming the LGU of Santo Cristo is instead a city in NCR, how much would the land be recorded on the books of Jackie Company?
- On January 1, 2020, CDO Corporation created a special building fund by depositing a single sum of P100.000 with an independent trustee. The purpose of the fund is to provide resources to build an addition to the older office building during the latter part of 2024. The company anticipates a total construction cost of P500.000 and completion by January 1, 2025. The company plans to make equal annual deposit from December 31, 2020 through 2024, to accumulate the P500.00O. The independent trustee will increase the fund each December 31 at an interest rate of 10%. The accounting periods of the company and the fund end on December 31. How much is the fund balance as of December 31, 2020? (Round off future value factors to five decimal places)The recent implementation of TCJA Act of 2017 limits the deductions for state and local taxes, which includes property taxes and sales taxes, to a maximum amount of $10,000 each year. Is the IRS taking drastic steps towards curbing home ownership? Does this place a disproportionate burden on taxpayers residing in states with higher market values on residential property?In 2021, Ryan Management collected rent revenue for 2022 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is taxed when collected in 2021. The deferred portion of the rent collected in 2021 was $130.0 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Suppose the deferred portion of the rent collected was $60 million at the end of 2022. Taxable income is $520 million. Prepare the appropriate journal entry to record income taxes in 2022.
- Tru Developers, Inc., sells plots of land for industrial development. Tru recognizes income for financial reporting purposes in the year it sells the plots. For some of the plots sold this year, Tru took the position that it could recognize the income for tax purposes when the installments are collected. Income that Tru recognized for financial reporting purposes in 2021 for plots in this category was $80 million. The company expected to collect 60% of each sale in 2022 and 40% in 2023. This amount over the next two years is as follows: 2022 $ 48 million 2023 32 million total $ 80 million Tru’s pretax accounting income for 2021 was $120 million. In its income statement, Tru reported interest income of $25 million, unrelated to the land sales, for which the company’s position is that the interest is not taxable. Accordingly, the interest was not reported on the tax return. There are no differences between accounting income and taxable income other than those described…Assume you purchased a car from a dealership in Arlington Heights in 2023 for $30,000. Including sales tax, the cost of the car was $33,000. Compute the amount of sales tax from this sale that would be reported by Arlington Heights as home rule sales tax revenue and intergovernmental revenue from sales taxes for 2023. determine the sales tax rate and how it is allocated to the State, Village, Cook County, and a Special District.In 2021, Ryan Management collected rent revenue for 2022 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is taxed when collected in 2021. The deferred portion of the rent collected in 2021 was $306.0 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Suppose the deferred portion of the rent collected was $104 million at the end of 2022. Taxable income is $1,180 million. Prepare the appropriate journal entry to record income taxes in 2022. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)