Jackie forecasts the following for the taxable year 2023.Gross profit from regular operations - 5,600,000Other operating income - 400,000Non-operating income - 50,000Cost of Sales - 3,700,000Deductible Expenses - 1,800,000 Assuming Jackie is an individual taxpayer, how much is the reduction in the deductions against gross revenues assuming the use of optional standard deduction?620,0001,600,0001,620,0003,080,000

In Phillipines there is a system of optional standard deduction for…

Answered: Jackie forecasts the following for the…

Business

Accounting

Jackie forecasts the following for the taxable year 2023.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 20CE

See similar textbooks

Related questions

Q: Susan and Stan Collins live in Iowa, are married and have two children ages 6 and 10. In 2020, Susan...

A: A tax credit is a monetary amount that taxpayers can deduct straight from their tax returns. Unlike ...

Q: In order to draw a basic break-even chart, which of the following information would you not require?...

A: The break even sales are the sales where business earns no profit no loss during the period. The ma...

Q: Don Johnson is the management accountant for Cari-Blocks (CB), which manufactures specialty blocks. ...

A: Fixed overhead spending variance The calculation of fixed overhead spending variance is the actual f...

Q: LOWE'S Balance Sheets (in millions) Fiscal 2013 Fiscal 2012 Amount Percent Amount Percent Assets Cur...

A: Price/Earning Ratio = Share Price/Earnings per share Generally, the Market price per share is taken ...

Q: 5.. Wildhorse Inc. manufactures an X-ray machine with an estimated life of 12 years and leases it t...

A: Lessee is the person to whom the asset has been granted to be used up to a certain lease period on t...

Q: DelPo Ltd is a construction company specialising in the construction bungalow and camping structures...

A: Introduction Concept of Substance over form states that the financial statements and its disclosures...

Q: Wildhorse Inc. manufactures an X-ray machine with an estimated life of 12 years and leases it to Cha...

A: calculation of lease receivable , sales price and cost price are as follows

Q: Booth Company had sales in 2020 of $1,875,000 on 75,000 units. Variable costs totaled $1,125,000 and...

A: Cost volume profit analysis is the technique used by the management for decision-making. The methods...

Q: Question 1 Finished goods inventory, beginning Finished goods inventory, ending Depreciation, factor...

A: Cost of goods sold = Beginning finished goods inventory + Cost of goods goods manufactured - ending ...

Q: Example 2-17 Nancy Seigle earns a monthly salary of $3,100 for a 35-hour week. For overtime she rece...

Q: When using the indirect method to prepare the operating section of a statement of cash flows, which ...

A: Decrease in accounts receivable. Added to the net income Gain on sale of land. Deducted from the n...

Q: The initial direct costs of leasing include lessor advertising costs. are generally borne by the l...

A: Introduction:- Initial direct costs included costs incurred by the lessor. It includes the amounts o...

Q: Assume the perpetual inventory method is used. The company purchased $12,700 of merchandise on acco...

A: The perpetual inventory method is one of the method in which record of inventory is maintained conti...

Q: A manufacturing company applies factory overhead based on direct labor hours. At the beginning of th...

A: Applied overhead = Actual direct labor hours x Overhead rate Where, Overhead rate = estimated that ...

Q: On January 2, 20Y7, Mikedes Company acquired 30% of the outstanding stock of Violet Company for $720...

A: Journal entry shows the recording of the transaction during an accounting year and every transaction...

Q: d Co. manufactures two types of O rings, large and small. Both rings use the same material but requi...

A: In this question, we have to calculate different variances.

Q: . What impact does a bargain purchase option have on the present value of the lease payments comput...

A: Introduction:- A bargain purchase option in a lease permit or gives the lessee to purchase the lease...

Q: On January 2, 2020, P Company acquired 80% investment in S Company. The acquisition cost was equal t...

A: Retained Earnings For the consolidated retained earnings the parent company retained earnings and ad...

Q: ns and updated values at the end of the accounting period, then answer the questions that follow. (N...

A: A bank reconciliation is the process of reconciling the bank account balance in an entity's books of...

Q: Pargo Company is preparing its master budget for 2022. Relevant data pertaining to its sales, produc...

A: The direct materials budget estimates the materials that will need to be bought over time in order t...

Q: Jackie is curious why the lawmakers provided for the 6% CGT to be in the form of a final withholding...

A: For Transfer of Real estate Asset or any other capital asset transferred to the buyer, when titles a...

Q: Sunland Leasing Company agrees to lease equipment to Coronado Corporation on January 1, 2020. The fo...

A: The question is based on the concept of Lease Accounting.

Q: Reiner Company uses a FIFO process costing system. The company had 5,000 units that were 60 percent ...

A: Since the material is added at the beginning of the process; therefore no. of units started during t...

Q: An increase in inventory balance would be reported in a statement of cash flows using the indirect m...

A: Changes in the operating assets of the business is the operating activity. Inventory is the operatin...

Q: On December 31, 2019, the liability section of Antonio Company's statement of financial position inc...

A: Solution Working note - Calculation of interest Accrued = P4000000*12%*3/12. =P120000.

Q: In her 1988 article called ‘Financial Accounting: In Communicating Reality, We Construct Reality’, R...

A: Introduction:- The field of accounting that deals with the summary, analysis, and reporting of a com...

Q: A company acquired a building, paying a portion of the purchase price in cash and issuing a mortgage...

A: Cash flow statement only includes the cash inflows and outflows.

Q: Indirect exporting occurs when a business sells its products in foreign markets. A Through other bus...

A: Indirect Export: Indirect export refers to the sale of products or services to a middleman who then ...

Q: Compute Current Ratio and Quick Ratio. If Cash is ? 1.50 Lakhs, ST Investments are 2.50 Lakhs, Bank ...

A: Given, Cash = 1.50 lakhs Short Term Investments = 2.50 lakhs Bank = 8.50 lakhs Debtors = 5.50 lakhs ...

Q: The December 31, 2019 statement of financial position of Help Company included the following informa...

A: Notes Receivable is a form of current asset in which customers to whom goods and services are provid...

Q: HO has three all-night operating grocery stores located in Manila. Each store has a branch manager w...

Q: umping with joy, you were the first one which Jackie shared her good news. She was just promoted as ...

A: Fringe benefit tax is a form of tax that is levied by the employer on the non-cash benefits of the e...

Q: Babak Industries is a division of a major corporation. Last year the division had total sales of $20...

A: Formula: Division's turnover = Sales revenue / Average Operating Assets

Q: Martin Company purchases a machine at the beginning of the year at a cost of $155,000. The machine i...

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by u...

Q: Use the following information (in random order) from a merchandising company and from a service comp...

A: The question is related to Cost Management. The cost of goods sold will be calculated with the help ...

Q: National Co. formulates and sells three major chemicals: AB, CD and EF. It sells to industrial users...

A: Solution Working note - Sales mix ratio : AB =3 CD =6 EF= 1 Total =10 The average UCM is : AB =P30 ...

Q: A statement of cash flows typically would not disclose the effects of capital stock issued at an a...

A: A cash flow statement indicates cash inflow and cash outflow information of a particular time period...

Q: What is the weighted average cost of capital of Bulldogs Inc.?

A: Solution Concept The weighted average cost of capital is calculated when there are various sources o...

Q: 6... Cheyenne Company manufactures a check-in kiosk with an estimated economic life of 12 years and...

A: Lesser is the person who permits the lessee to use the asset up to certain time period and receive r...

Q: Question Six: If the cost of an item of inventory is $50, the current replacement cost is $45, and t...

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...

Q: ckie derives its sole income from Zhakie. Said income is normally subject to withholding taxes. Jack...

A: There certain exemption to the tax expenses but they may be allowed for deduction to taxes but some ...

Q: How much is capital credited to D at the time of formation of the partnership? To input answers, kin...

A: The non cash assets invested by partners are recorded at fair value in the market instead of book va...

Q: 1 The company's bank statement shows a cash balance of $12,000. Comparing the company's cash records...

A: Pretax income is the excess of sales over cost of goods sold and all operating and non-operating exp...

Q: Tyler Company uses a weighted average process costing system and started 30,000 units this month. Ty...

A: Total units = Beginning units + Units started = 30,000 + 12,000 = 42,000

Q: New Scotland Co. reported a total comprehensive income of $2,275,000. Cash from operations:

A: Comprehensive Income means income from continued as well as discontinued operations . It also includ...

Q: During 2020, William purchases the following capital assets for use in his catering business: New pa...

A: Depreciation: The word "depreciation" refers to an accounting procedure that is used to spread the c...

Q: “But I intended to pay it all back, I really did,” Mr. J said as he talked to his manager. How did I...

Q: The capital, withdrawal and income summary accounts for Anna Delvey Travel Agency are shown in T-acc...

A: The statement of changes in equity is prepared to record the changes to capital incurred during peri...

Q: s the answer to this question correct If you received a check from Mr. Jones for $500 for work you ...

A: Cash Receipts Journal is one of the special journal under which all cash received by the business is...

Q: Gale, McLean, and Lux are partners of Burgers and Brew Company with capital balances as follows: Gal...

A: The first step in accounting is a journal entry, which is used to record a business transaction in a...

Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

Jackie forecasts the following for the taxable year 2023.

Gross profit from regular operations - 5,600,000
Other operating income - 400,000
Non-operating income - 50,000
Cost of Sales - 3,700,000
Deductible Expenses - 1,800,000

Assuming Jackie is an individual taxpayer, how much is the reduction in the deductions against gross revenues assuming the use of optional standard deduction?

620,000

1,600,000

1,620,000

3,080,000

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

How do the all events and economic performance requirements apply to the following transactions by an accrual basis taxpayer? a. The company guarantees its products for six months. At the end of 2019, customers had made valid claims for 600,000 that were not paid until 2020. Also, the company estimates that another 400,000 in claims from 2019 sales will be filed and paid in 2020. b. The accrual basis taxpayer reported 200,000 in corporate taxable income for 2019. The state income tax rate was 6%. The corporation paid 7,000 in estimated state income taxes in 2019 and paid 2,000 on 2018 state income taxes when it filed its 2018 state income tax return in March 2019. The company filed its 2019 state income tax return in March 2020 and paid the remaining 5,000 of its 2019 state income tax liability. c. An employee was involved in an accident while making a sales call. The company paid the injured victim 15,000 in 2019 and agreed to pay the victim 15,000 a year for the next nine years.
Arthur Wesson, an unmarried individual who is age 68, reports taxable income of 510,000 in 2019. He records positive AMT adjustments of 80,000 and preferences of 35,000. Arthur itemizes his deductions, and his regular tax liability in 2019 is 153,694. a. What is Arthurs AMT? b. What is the total amount of Arthurs tax liability? c. Draft a letter to Arthur explaining why he must pay more than the regular income tax liability. Arthurs address is 100 Colonels Way, Conway, SC 29526.
B Corporation, a calendar year-end, accrual basis taxpayer, is owned 75 percent by Bonnie, a cash basis taxpayer. On December 31,2019, the corporation accrues interest of $4,000 on a loan from Bonnie and also accrues a $15,000 bonus to Bonnie. The bonus is paid to Bonnie on February 1,2020; the interest is not paid until 2021 . How much can B Corporation deduct on its 2019 tax return for these two expenses? $0 $4,000 $15,000 $19,000 $12,000
LO.2 Osprey Corporation, an accrual basis taxpayer, had taxable income for 2019 and paid 40,000 on its estimated state income tax for the year. During 2019, the company received a 4,000 refund upon filing its 2018 state income tax return. The company filed its 2019 state income tax return in August 2020 and paid the 7,000 state income tax due for 2019. In December 2019, the company received a notice from the state tax commission that an additional 6,000 of income tax was due for 2017 because of an error on the return. The company acknowledged the error in December 2019 and paid the additional 6,000 in tax in February 2020. What is Ospreys 2019 Federal income tax deduction for state income taxes?