Sid works in the corporate office at Loblaw's and receives the following during the year. • Salary: $46,000 • Frequent flyer miles earned on business flights purchased with a personal credit card: 28,000 miles, with no cash value • A long-service (non-cash) award for five years of service: $600 • Christmas (cash) bonus: $750 • Value of a wedding gift, as Sid got married in the current year. $200 How much of the items are taxable? Choose the correct answer

Sid works in the corporate office at Loblaw's and receives the following during the year. • Salary: $46,000 • Frequent flyer miles earned on business flights purchased with a personal credit card: 28,000 miles, with no cash value • A long-service (non-cash) award for five years of service: $600 • Christmas (cash) bonus: $750 • Value of a wedding gift, as Sid got married in the current year. $200 How much of the items are taxable? Choose the correct answer

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

C-D. Use the following information for the next two questions:Mr A, employed in the private sector, received the following benefits during the year: Rice subsidy of one 50 kg sack of rice per month worth P2,500 Uniform and clothing allowance, P8,000 for the year Medical benefits for hospitalization during the year, P38,000 Laundry allowance, PI,000 per month Omega wristwatch worth P230,000 received as a loyalty award for having worked for the company in the last 25 years. 13 month pay, P40,000 Christmas bonus, P6,000Question: C. How much is Mr. X's taxable "13" month pay and Other Benefits?Answer: Question: D. If Mr X's total "take-home pay (excluding the benefits above) for the year was 480,000, how much is Mr X's tax due for the year?Answer:
Question 6 6. Mr Bo, a manager at Mamu Papi earns RM10,000 salary per month. He hasbeen working in the same company for the past 20 years. As an appreciation tohis long service, he is provided with the following benefits: An unfurnished condo at 1 Persiaran Gurney. The rental of RM4,000 a permonth is paid by the employer. The employer’s portion of the Employee’s Provident Fund, 12% of his monthlysalary A new Sports Utility Vehicle (SUV) costing RM150,000 was given to him since2018. Since this car is a hybrid, the company does not provide him with anypetrol allowances. A gardener who is paid RM400 per month. A half day maid who is paid RM500 per month.1 The company paid for RM10,000 worth of airfare for Mr Bo and his family togo for a holiday in Singapore in January 2021. RM2,000 medical and dental benefitsMr Bo apart from his work receives the following additional income RM3,500 single tier dividend from Tenaga Nasional Berhad Net dividend income of RM12,750. Interest income…
Q3 James Collier left his job at a large corporation where he had worked as a senior accountant. He was getting $82000 as yearly salary. He established his own J.C. Accounting firm. J.C. Accounting earned total revenue $680000 in first year. The material cost was $49000; costs for rented equipment were $30000, salary given to the security man was $18800 and wages given to workers were $158229 in a year. The interest forgone for the invested funds was $22000 per year. James Collier estimated his entrepreneurial talent was worth $19850 per year. He was also offered $26985 per year to train employees in another firm. Two students assist him managing his account books for which they are paid $6550 each per year. Find accounting profits and economic profits for J.C. Accounting firm. Should James Collier stay in his business? Why? Explicit costs = Implicit costs = Economic costs = Accounting…
Solve a and b quickly please. a) John, age 60, purchases an annuity from an insurance company for $90,000. He is to receive $500 per month for life. How much income must he recognize in the current year? b) Emma, age 33 is single and has no dependents. She earned $ 40,000 this year before she was fired for poor job performance. Emma subsequently received $3,000 this year in damages from a personal injury action. Prior to her firing, she injured her back upon lifting a file cabinet and received $5,000 in worker’s compensation. How much should Emma include in her gross income?
For you performance task#2 identify what do the underline words refered to Miriam deposite an amount of php89632.37 from abc bank on the 7th birthday of her daughter that pays 1% interest compounded anually she received an amount of php100000 on the 18th birthday of her daughter
QUESTION ONE A person managing a dry- cleaning store for $ 30,000 per year decides to open a new one. The revenues of the store during the first year of operation are $ 100,000 and the expenses are $ 10,000 for supplies, $ 35,000 for salaries, $ 8,000 for rent, and $ 2,000 for utilities. The person also used $5,000 for interest on a bank loan. Assume that income and business taxes are zero and the repayment of the principal of the loan does not start before three years (suppose r=10%). Calculate (a) the explicit cost (b) the implicit costs (c) the business profit, (d) the Economic profit (e) should he open the dry-cleaning store or not? Explain your answer.
Question 40 Grace is a self employeed sales consultant who spends significant time entertainment potential customers. She keeps all the appropriate records to substantiate her entertainment. She has the following expenses in the current year: meals where business was conducted $5000 Greens fees (all fees) 500 tickets to baseball games (all business) 500 country cup dues (all business use) 6000 what are the tax-deductible meals and entertainment expenses Grace May claim in the current year? $ on which tax form should she claim the deduction?
Evaluate Pete Donaldson’s ethical behavior. b. Suppose that you have been hired as the chief finance officer for Donaldson Mining Supplies. You have been told that the $30,000 has been donated to the company. During the second week of your employment, the father-in-law drops in unexpectedly and introduces himself. He then asks you how the company is doing and wants to know if his $30,000 loan is still likely to be repaid in 3 years. Suppose also that same day you overhear an employee mention that the safety equipment is no longer usable because regulations now require a newer and different model. b.1 Assume that you have yet to prepare the financial statements for the loan application. What should you do? b.2 Suppose that the financial statements have been prepared and submitted to the bank. In fact, that morning, you had received a call from the bank, indicating that a decision was imminent and that the line of credit would likely be approved. What should you do under these…
E 4 One and Joel are partners in an accounting firm. Joel traveled abroad for medical reasons for a year, leaving One in charge of their business. While Joel was away, One hired Nonsikelelo to be office administrator at a salary of P48,000 per annum. Upon returning, Joel discovered that Nonsikelelo’ssalary had not been paid regularly and she was owed P20,000. Joel told Nonsikelelo that One had no authority to hire her and that her contract was rendered void. He mentioned that he was not liable under the contract. a. Explain whether One had authority to hire Nonsikelelo in Joel’s absence. b. Discuss the term liability and state whether Joel is liable to Nonsikelelo in terms of the outstanding salary.
4. Two partners Mr. Abdullah and Mr. Yahya running their business. The business avails an overdraft limit of RO 50,000 with the Bank. Mr. Abdullah signed two cheques for payment dated 17-03-2020. The business communicated the bank that Mr. Abdullah passed away in a road accident on 15-03-2020. The customers present these two cheques for payment on 17-03-2020. What is the solution for this situation? ( my country Oman)
Question 2 – During 2020, you receive from your employer: • a $400 gift certificate. • a $600 chair for outstanding customer service. • 4 coffee mugs that cost the employer $20. • an Easter basket of gourmet treats valued at $245. • a cash award of $300 in recognition of 10 years of service with the employer. What is the amount that will be included in your 2020 Net Income (Division B)? A) $800. B) $1,000. C) $1,300. D) $700.
Cassi (SSN 412-34-5670) has a cash-basis home cleaning business she runs as a sole proprietorship. The following are the results from business operations for the tax year 2019: Gross receipts $ 203,000 Business mileage: 27,000 (miles incurred ratably throughout the year) 35,000 miles total during the year 2019 Van (over 6,000 lbs) placed in service 1/01/19, cost 27,000 Postage (500 ) Wages (26,000 ) Payroll taxes (1,950 ) Supplies (12,500 ) Phone (1,250 ) Internet service (600 ) Rent (2,400 ) Insurance (2,800 ) Van expenses (4,500 ) Business assets Date Purchased Cost Computer 1 5/18/19 $ 2,200 Computer 2 6/01/19 2,700 Printer 3/01/18 900 Copier 3/02/18 2,100 Furniture 3/01/18 6,000 Required: Determine Cassi’s self-employment income and QBI deduction. Prepare Schedule C and Schedule SE. § 179 expense is elected on all eligible assets (§ 179 was not taken on assets…