Interest paid or accrued during 2018 on aggregate acquisition indebtedness of $2 million or less ($1 million or less for married persons filing separate returns) is deductible as qualified residence interest
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7. Interest paid or accrued during 2018 on aggregate acquisition indebtedness of $2 million or less ($1 million or less for married persons filing separate returns) is deductible as qualified residence interest.
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- LO.4, 7 In December 2019, Carl Corporation sold land it held as an investment. The corporation received 50,000 in 2019 and a note payable (with adequate interest) for 150,000 to be paid in 2021. Carl Corporations cost of the land was 80,000. The corporation has a 90,000 net capital loss carryover that will expire in 2019. Should Carl Corporation report the sale in 2019 or use the installment method to report the income as payments are received?A calendar-year taxpayer had net Code Sec. 1231 losses of $8,000 in 2018. He had net Code Sec. 1231 gains of $5,250 and $4,600 in 2019 and 2020, respectively. There were no net Code Sec. 1231 losses in 2015, 2016, and 2017. What portion of the net Code Sec. 1231 gain is reported as ordinary income, and what portion is considered long-term capital gain in 2020? $5,250 is reported as ordinary income; no portion is treated as long-term gain. No long-term capital gain is reported and $3,400 is reported as ordinary income. $2,750 is reported as ordinary income and $1,850 is reported as long-term capital gain. $2,150 is reported as long-term capital gain and $2,400 is reported as ordinary income.XY is a domestic corporation. The taxable period is 2020 year gross income deductions 2016 4,000,000 6,000,000 2017 5,000,000 4,500,00 2018 6,000,000 6,300,000 2019 7,000,000 6,800,000 2020 6,000,000 5,800,000 2021 6,000,000 5,000,000 Compute for the NOLCO claimable in 2021. Show computation A. Zero B. 100,000 C. 200,000 D. 300,000
- 6. On December 31, 2021, ABC has earned financial income before tax of P3,240,850. The tax rate applicable for the current and future years is 30%. For purposes of determining the taxable income, the following items are considered for analysis and reconciliation: On January 1, 2021, ABC has acquired a depreciable property amounted to P1,000,000. For financial accounting purposes, it uses straight line method to depreciate it and sum of the year’s digit method for income tax purposes (with depreciation rate from year 1 to year 10 of 10/55, 9/55, 8/55, 7/55, 6/55, 5/55, 4/55, 3/55, 2/55, 1/55, respectively). The useful life of the asset is 10 years with no residual value. 3 years prepaid rent of P600,000 (P200,000 a year) paid December 31, 2021 that is applicable for the next 3 years starting 2022. Dividend income (received in cash) of P250,000 that is subject to 20% tax rate. Interest income on deposit (already credited to ABC’s deposit account) of P150,000 with 20% applicable tax…3. On December 31, 2021, ABC has earned financial income before tax of P3,240,850. The tax rate applicable for the current and future years is 30%. For purposes of determining the taxable income, the following items are considered for analysis and reconciliation: a. On January 1, 2021, ABC has acquired a depreciable property amounted to P1,000,000. For financial accounting purposes, it uses straight line method to depreciate it and sum of the year's digit method for income tax purposes (with depreciation rate from year 1 to year 10 of 10/55, 9/55, 8/55, 7/55, 6/55, 5/55, 4/55, 3/55, 2/55, 1/55, respectively). The useful life of the asset is 10 years with no residual value. b. 3 years prepaid rent of P600,000 (P200,000 a year) paid December 31, 2021 that is applicable for the next 3 years starting 2022. c. Dividend income (received in cash) of P250,000 that is subject to 20% tax rate. d. Interest income on deposit (already credited to ABC's deposit account) of P150,000 with 20%…During 2016, an estate generated income of $20,000: Rental income . . . . . . . . . . . . . $9,000Interest income . . . . . . . . . . . .. 6,000Dividend income . . . . . . . . . . . . 5,000 The interest income is conveyed immediately to the beneficiary stated in the decedent’s will. The dividends are given to the decedent’s church.What is the taxable income of the estate?
- During 2021 Erin received eligible dividends of $1,000, non-eligible dividends of $800 and foreign dividends of $1,000 before 10% foreign income tax was withheld. Her 2021 property income is (note eligible dividend gross up is 38% and non-eligible dividend gross up is 15%): $3,254 $3,300 $2,800 $2,794Gamma had pretax accounting income of $1,400 during 2018. Gamma used accelerated depreciation for tax purposes ($1,800) and straight-line depreciation for financial reporting purposes ($200). During 2018, Gamma accrued warranty expenses of $900 and paid cash to honor warranties of $500. Gamma’s taxable income for 2018 would beHow much claim against the insolvent person is deductible from the gross estate?Amount of claim against the debtor, P500,000Total assets of the debtor, P5,000,000Total liabilities of the debtor, P8,000,000
- A derived its income from its self-operated talpakan business. The details of his business for 2021 are as follows: Gross Receipts - P100,000.00 Operating Expenses - P50,000.00 Income taxes withheld in general - P10,000.00 Question: What is A's taxable income? Group of answer choices P40,000.00 P50,000.00 P90,000.00 P100,000.00How do you get the answer to part 4? Corning-Howell reported taxable income in 2021 of $156 million. At December 31, 2021, the reported amount of some assets and liabilities in the financial statements differed from their tax bases as indicated below: Carrying Amount Tax Basis Assets Current Net accounts receivable $ 44 million $ 48 million Prepaid insurance 56 million 0 Prepaid advertising 40 million 0 Noncurrent Investments in equity securities (fair value)* 40 million 0 Buildings and equipment (net) 396 million 316 million Liabilities Current Deferred subscription revenue 48 million 0 Long-term Liability—compensated future absences 630 million 0 *Gains and losses taxable when investments are sold. The total deferred tax asset and deferred tax liability amounts at January 1, 2021, were $174.25 million and…G transferred property to F, in trust, and under the terms of the transfer, F should accumulate the income for the benefit of B until the latter reaches the age of majority. During 2020, the property earned P1,000,000 and incurred expenses of P350,000. P50,000 of the income was distributed to B. How much is income tax?
