rented out a house at a monthly rent of Rs. 20,000. During the year incurred following expenses in respect of the house: Repair of house Rs. 15,000 Insurance premium 10,000 Property tax Rs. 6,000 Interest on loan from HBFC Rs. 12,000 Legal expenses Rs. 2,000 Required: Compute the amount that is chargeable to tax under the head "Income from Property

rented out a house at a monthly rent of Rs. 20,000. During the year incurred following expenses in respect of the house: Repair of house Rs. 15,000 Insurance premium 10,000 Property tax Rs. 6,000 Interest on loan from HBFC Rs. 12,000 Legal expenses Rs. 2,000 Required: Compute the amount that is chargeable to tax under the head "Income from Property

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter4: Additional Income And The Qualified Business Income Deduction

Section: Chapter Questions

Problem 9P

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Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for extraordinary repairs If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for the year?
Johnson, Incorporated, had the following transactions during the year: Purchased a building for $5,000,000 using a mortgage for financing Paid $2,000 for ordinary repair on a piece of equipment Sold product on account to customers for $1,500,600 Paid $20,000 cash to add a storage shed in the corner of an existing building Paid $360,000 in monthly salaries Paid $25,000 for routine maintenance on equipment Paid $110,000 for extraordinary repairs Depreciation expense recorded for the year is $15,000. If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Johnsons balance sheet resulting from this years transactions? What amount did Johnson report on the income statement for expenses for the year?
Lori Kinmark works as a jeweler for a local company. She earns 1,000 per week, plus a year-end bonus of 2,000. Kinmark also earns an additional net self-employment income of 28,000 per year. ____1.Compute Kinmarks annual earnings from employment. ____2.Compute Kinmarks total earnings from her job and from self-employment income. ____3.How much self-employment income should Kinmark include in computing taxable self-employment income for OASDI taxes? ____4.What are the total FICA taxes on her self-employment earnings?
Johnson, Incorporated had the following transactions during the year: Purchased a building for $5,000,000 using a mortgage for financing Paid $2,000 for ordinary repair on a piece of equipment Sold product on account to customers for $1,500,600 Purchased a copyright for $5,000 cash Paid $20,000 cash to add a storage shed in the corner of an existing building Paid $360,000 in monthly salaries Paid $25,000 for routine maintenance on equipment Paid $110,000 for major repairs If all transactions were recorded properly, what amount did Johnson capitalize for the year, and what amount did Johnson expense for the year?
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6. In the current year, Clara rented her apartment on AirBnb for 13 days. She received gross rental income of $3,100. Her expenses for the apartment are: - Operating expenses $4,000 - Depreciation $2,000 - Mortgage interest and Property taxes $4,000 - Utilities/repairs $2,000 Calculate the income and expenses reported for the rental activity. What will Clara report on her tax return for this rental activity? $3,100 income, $3,100 expenses $3,100 income, $0 expenses Clara will not report anything. $3,100 income; $12,000 expenses
Yolanda is a cash basis taxpayer with the following transactions during the year: Cash received from sales of products $66,000 Cash paid for expenses (except rent and interest) 40,000 Rent prepaid on a leased building for 18 months 45,000 beginning December 1 Prepaid interest on a bank loan, paid on 5,000 December 31 for the next 3 months Calculate Yolanda’s income from her business for this calendar year. Sales income $_____________ Expenses: Other than rent and interest $______________ Rent $_____________________ Interest $__________________ Net income $_______________
Lance is entering an invoice for a new item of equipment in the accounts. The invoice shows the following costs: Water treatment equipment $39,800 Delivery $1,100 Maintenance charge $3,980 Sales tax $7,854 Invoice total $52,734 Lance is registered for sales tax. What is the total value of capital expenditure on the invoice?
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Mosh, a sole proprietor, uses the cash basis of accounting. At the beginning of the current year, accounts receivable were $25,000. During the year, Mosh collected $100,000 from customers. At the end of the year, accounts receivable were $15,000. What was Mosh's gross taxable income for the current year? A. $75,000 $90,000 B. C. $100,000 D. $110,000