James Jones is the owner of a small retail business operated as a sole proprietorship. During 2017, his business recorded the following items of income and expense: Revenue from inventory sales Cost of goods sold Business lieense tax Rent on retail space Supplies Mages paid to employees Payroll taxes Utilities $147,000 33, 500 2,400 42,000 15,000 22,000 1,700 3,600 a. Compute taxable income attributable to the sole proprietorship by completing Schedule C to be included in James's 2017 Form 1040. b. Compute self-employment tax payable on the earnings of James's sole proprietorship by completing a 2017 Schedule SE, Form 1040.

James Jones is the owner of a small retail business operated as a sole proprietorship. During 2017, his business recorded the following items of income and expense: Revenue from inventory sales Cost of goods sold Business lieense tax Rent on retail space Supplies Mages paid to employees Payroll taxes Utilities $147,000 33, 500 2,400 42,000 15,000 22,000 1,700 3,600 a. Compute taxable income attributable to the sole proprietorship by completing Schedule C to be included in James's 2017 Form 1040. b. Compute self-employment tax payable on the earnings of James's sole proprietorship by completing a 2017 Schedule SE, Form 1040.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 33P

See similar textbooks

Similar questions

The taxpayer started operating a grocery store during 2015. He submits the following data: Merchandise Inventory P 469,000 Gross sales 2,814,000 Purchases from VAT registered entities (net) 1,563,000 Purchases from non-VAT registered entities 312,000 Determine the following: What is the applicable business tax for the taxpayer? How much is the correct business tax due? Assume the taxpayer is non-VAT registered, how much is the VAT payable for the year? Assume the taxpayer is VAT registered, how much is the VAT payable for the year?
X, Senior citizen, is engaged in business of selling product X. For 2017, Lolo X has a total sales of 300,000 and cost of sales / expenses of 100,000. He has also paid family expenses such as foods and utilities of 40,000. What is the taxable net income of X?
Ferran operates a boutique yarn store from their own. The store had accountingincome after tax of $40,000. Already deducted from that number are tax expenses of$8,000, meals of $1,300, and yarn supplies expense of $5,000.Calculate Ferran's taxable income based on what you know about them?
May Yaman is engaged in a VAT-business and a non-VAT business. Her records show the following data, no tax included, for the taxable year: Sales From VAT business P6,000,000 From non-VAT business 4,000,000 Purchases For VAT business from VAT suppliers 3,000,000 For non-VAT business 2,000,000 Purchases from VAT suppliers of supplies used for VAT and non-VAT business 30,000 Expenses incurred for both VAT and non-VAT business (70% of these expenses were paid to VAT-registered enterprises) 100,000 The VAT payable is: Group of answer choices
John Wick operates books stores and renders services as a professional broker. In 2018, his gross sales amounted to P800,000. In addition to that, he received P300,000 from his services as a broker. Assume that he failed to signify his intention to be taxed at 8% income tax rate on gross sales in his initial Quarterly Income Tax Return, and he incurred the cost of sales and operating expenses amounting to P600,000 and P200,000, respectively. What is the income tax due to John Wick in his quarterly income tax return?
Ralph is the sole proprietor of a VAT-registered t-shirt printing business.During the taxable month of September 2018, he made the following transactions:Transactionimportation of clothing for personal use P189,000Importation of clothing to be resold in business 1,240,000Importation of printers 975,000Domestic purchase of t-shirt ink 880,000Payment for maintenance services rendered for business 358,000Total Value P3,642,000 1. How much is the input VAT? 2. If Ralph is a non-VAT registered taxpayer, how much can be claimed as Input VAT? 3. If Ralph availed of the 8% income tax option, how much can be claimed as input VAT?
Mr. John Wick operates books stores and renders services as a professional broker. In2018, his gross sales amounted to P800,000. In addition to that, he received P300,000from his services as a broker. Assume that he failed to signify his intention to be taxed at8% income tax rate on gross sales in his initial Quarterly Income Tax Return, and heincurred the cost of sales and operating expenses amounting to P600,000 and P200,000,respectively. What is the income tax due to John Wick in his quarterly income tax?
A VAT registered person engages in both VAT and VAT exempt business. During the year total sales amounted to P500,000, exclusive of the VAT. Sale of the VAT exempt business amounts toP200,000. During the quarter, the business incurred the following: Input VAT arising from repairs amounting P6,000. On the other hand, input on supplies, for common use amounted P1,200. The creditable input tax is
Ferran operates a boutique yarn store from their own. The store had accountingincome after tax of $50,000. Already deducted from that number are depreciation of$5,000, financing fees of $2,500, and salaries to arm's length employees of $10,000.CCA would be $4,000.Calculate Ferran's taxable income based on what you know about them?
Ross Company has been in business for several years, during which time it has been profitable. For each of those years, Ross reported (and paid taxes on) taxable income in the same amount as pretax financial income based on the following revenues and expenses:Revenues 2017 $253,0002018 $241,000Expenses2017 $180,0002018 $196,000 Ross was subject to the following income tax rates during this period: 2017, 30%; and 2018, 25%. During 2019, Ross experienced a severe decrease in the demand for its products. The company tried to offset this decrease with an expensive marketing campaign, but was unsuccessful. Consequently, at the end of 2019, Ross determined that its revenues were $60,000 and its expenses were $193,000 for both income taxes and financial reporting.At the end of 2019 due to increasing competition, Ross deemed that it was more likely than not that 50% of the future deductible amount will not be realized. The income tax rate was 21% for the entire period, and no change in the tax…
Juan Dela Cruz is the owner-manager of JDC Trading Company. Total Sales generated during the year amounted to P 1,230,000. Cost of goods sold is P 492,000 and total operating expenses is 184,500. The company opted for itemized deduction. Compute the gross taxable compensation income and tax due on each given situations: Juan Dela Cruz is single with no qualified dependent Juan Dela Cruz is single with 1 qualified dependent; JDC received creditable income tax withheld from its customers at P 27,655.
Bluedragon is engaged in the following business activities for the year 2021: buying and selling of computer of computer parts with gross sales of P1,500,000 and as a freelance graphic artist with gross receipts of P1,000,000. Determine the business tax and the business tax due. a. Percentage tax 1%; P 25,000 b. Percentage tax 3%; P 75,000 c. VAT 12%; P 300,000 d. VAT Exempt; P 0