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Sandra Parchment is 66 years old and operates Parchment's Sports Wear. Her gross receipts and
expenses for 2020 are as follows:
Income from trade $52,000,000
Pension Income $3,600,000
Interest income $2,300,000
Dividend income $ 750,000
Total Allowable Expenses $6,285, 000.00 and total purchases $32,500,000, capital allowance for the year
amounted to $650,000.00
Required:
Calculate her tax liability for year of assessment 2020 and her statutory deductions.
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- Cameron D., a sole proprietor has the following data in 2021 for the first year of merchandising:Gross sales – P300,000; Cost of Sales – P150,000; Other Income – P50,000; Selling expenses – P20,000; Depreciation expense – P4,000. How much is Cameron’s gross income?Western Foods purchased a 4,000,000 life insurance policy on the company president. The annual premium that was paid on January 1, 2020, the beginning of the third policy year, amounted to P96,000. In 2020, cash surrender value increased by P7,000 and dividends from the insurance company credited against the premiums due for the year amounted to P1,500.What was the amount of the life insurance expense for 2020? A.87,500 B. 89,000 C. 90,500 D. 101,500Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): 2021 2022 Revenues $ 888 $ 980 Expenses 760 800 Pretax accounting income (income statement) $ 128 $ 180 Taxable income (tax return) $ 116 $ 200 Tax rate: 25% Expenses each year include $30 million from a two-year casualty insurance policy purchased in 2021 for $60 million. The cost is tax deductible in 2021. Expenses include $2 million insurance premiums each year for life insurance on key executives. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2021 and 2022 were $33 million and $35 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $25 million ($10 million collected in 2020 but not recognized as revenue until 2021) and $33 million, respectively. Hint: View this as two temporary differences—one reversing in 2021; one originating in 2021. 2021…
- Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): 2021 2022 Revenues $ 888 $ 980 Expenses 760 800 Pretax accounting income (income statement) $ 128 $ 180 Taxable income (tax return) $ 116 $ 200 Tax rate: 25% Expenses each year include $30 million from a two-year casualty insurance policy purchased in 2021 for $60 million. The cost is tax deductible in 2021. Expenses include $2 million insurance premiums each year for life insurance on key executives. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2021 and 2022 were $33 million and $35 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $25 million ($10 million collected in 2020 but not recognized as revenue until 2021) and $33 million, respectively. Hint: View this as two temporary differences—one reversing in 2021; one originating in 2021. 2021…Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): 2021 2022 Revenues $ 888 $ 980 Expenses 760 800 Pretax accounting income (income statement) $ 128 $ 180 Taxable income (tax return) $ 116 $ 200 Tax rate: 25% Expenses each year include $30 million from a two-year casualty insurance policy purchased in 2021 for $60 million. The cost is tax deductible in 2021. Expenses include $2 million insurance premiums each year for life insurance on key executives. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2021 and 2022 were $33 million and $35 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $25 million ($10 million collected in 2020 but not recognized as revenue until 2021) and $33 million, respectively. Hint: View this as two temporary differences—one reversing in 2021; one originating in 2021. 2021…Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): 2021 2022 Revenues $ 888 $ 980 Expenses 760 800 Pretax accounting income (income statement) $ 128 $ 180 Taxable income (tax return) $ 116 $ 200 Tax rate: 25% Expenses each year include $30 million from a two-year casualty insurance policy purchased in 2021 for $60 million. The cost is tax deductible in 2021. Expenses include $2 million insurance premiums each year for life insurance on key executives. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2021 and 2022 were $33 million and $35 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $25 million ($10 million collected in 2020 but not recognized as revenue until 2021) and $33 million, respectively. Hint: View this as two temporary differences—one reversing in 2021; one originating in 2021. 2021…
- Lancelot is a dealer of household appliances. He reported the following in 2019 and 2020: 2019 2020 Installment sales P500,000 P800,000 Cost of installment sales 250,000 440,000 Collections 300,000 600,000 Lance’s 2020 collection is inclusive of P100,000 accounts from 2019. Using the accrual basis of accounting compute Lancelot’s gross income subject to income tax in 2020. P360,000 P275,000 P320,000 P250,000Stone Pine Corporation, a calendar year taxpayer, has ending inventory of $150,000 on December 31, 2023. During the year 2023, the corporation purchased additional inventory of $375,000. If cost of goods sold for 2023 is $470,000, what was the beginning inventory on January 1, 2023?ABC Co. has the following balances at the end of year 2020: Cost of the goods sold-SR300,000 Advertisement expense=50,000 Net sales= 1,000,000 Utility expense=10,000 Salaries expense=50,000 Prepare the income statement for the company.
- In March 1, 2019, Tina Corporation reported the following business income and expenses: Sales P1,000,000, Cost of sales P600,000, Operating expenses P200,000; Gain from sale of old furniture P20,000. If 20% of operating expenses of Tina is prepaid expenses, how much is the taxable income?BCD Company had sales Revenue of $500,000 for the year 2019. Its cost of goods sold was $240,000, and its operating expenses were $50,000, and administrative expenses $ 25,000. Interest revenue for the year is $5,000 of which $2000 is unearned and interest expense was $12,000. BCD’s income tax rate is 25%. Required: Prepare a classified multiple-step income statement for the year for BCD Company.Based on the following information what was Simmond’s profit for the year? During the year Simmond’s drawings were £6,000 and she introduced a further £2,000 capital 1 January 2021 31 December 2021 Assets £87,500 £106,200 Liabilities £65,300 £76,200 a) £7,800 b) £20,000c) £18,700 d) £11,800