Taxpayer enjoyed its last year of its income tax holiday in 2020. For that year, it reported however a net loss of P500,000. For the taxable year 2021, it reported a net income of P300,000. How much NOLCO must have been used by the taxpayer in 2021? * a. Zero b. 100,000 c. 300,000 d. 500,000

Taxpayer enjoyed its last year of its income tax holiday in 2020. For that year, it reported however a net loss of P500,000. For the taxable year 2021, it reported a net income of P300,000. How much NOLCO must have been used by the taxpayer in 2021? * a. Zero b. 100,000 c. 300,000 d. 500,000

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 29CE

See similar textbooks

Related questions

Q: appear in the table of contents of the complete report.

A: Management Report - To track your business's performance successfully, you need to have clear goals…

Q: ACME Incorporated, a publicly traded company with a December 31 year end, had the following equity…

A: The dividend is declared to the shareholders from the retained earnings of the business. The…

Q: Pretty Pillows, Mfg., manufactures silk throw pillows. Last month the company produced 3,890…

A: Cost of goods manufactured: It means total manufacturing costs, including all direct materials,…

Q: 70,500 Salary Expense Accounts Receivable 90,000 Accumulated Depreciation-Equipment 14,800 3,600…

A: Income Statement is a part of Financial Statements. It shows the Net Income earned or net loss…

Q: e) None of these answers. 9. Ahmed's employer provides him with S150,000 of group term ife insurance…

A: Group Term Life Insurance is a type of insurance offered to a group of people under the same policy.…

Q: Chapter 10: Stockholders' Equity and Appendix D Use the Stockholders' Equity section of FSB's…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Whispering Winds Corp. sold $5,900,000, 11%, 15-year bonds on January 1, 2022. The bonds were dated…

A: The bonds are the financial instruments used by the business to raise money from the market or other…

Q: Unit Cost and Cost Assignment, Nonuniform Inputs Loran Inc. had the following equivalent units…

A: 1. Determination of the unit cost for materials, for conversion, and in total for the fabrication…

Q: A family friend has asked your help in analyzing the operations of three anonymous companies…

A: Formulas: Net operating income = Average operating assets x ROI Dollar amount = Average operating…

Q: Sophie Gowna, 47 years old, works for an Ontario company with a Bi-weekly pay cycle. She earns $18.5…

A: Pensionable earnings refer to those earnings which are useful to evaluate the pension contributions…

Q: r preparation of the balance sheet. b. Ensure that the ledger is in balance for the start of the…

A: Post closing trial balances includes only permanent accounts . Permanent accounts are balance sheet…

Q: The $5-bill in your pocket (Canadian) is: (check all that apply Select all that apply:

A: The balance sheet shows the financial statement of the company that includes the assets,…

Q: Is it right to avoid taxes as much as you can?

A: Taxation- The laws and regulations that govern the financial services industry are referred to as…

Q: If selling price $40 per unit Variable cost $25 per unit…

A: Break even point = fixed cost / contribution per unit Sales = fixed + desired profit / contribution…

Q: b. What i

A: Given as,

Q: You plan on starting a lawn mowing business by investing $700 of your own money and purchase $500 of…

A: Depreciation refers to the reduction in asset value resulting from factors such as wear and tear and…

Q: What is companies net income? The following information is given to you relating to the operations…

A: Solution:- Preparation of the net income of the company as follows under:-

Q: a restructuring of an 8% P6,000,000 note payable to Second management, Tagaytay Highlands Company…

A: Debt Restructuring The term debt restructuring which are utilized by the organization to meet the…

Q: Management of Animo Inc has asked for your help as an intern in preparing some key reports for…

A: Conversion costs is the cost to convert the raw material into finished goods. Prime cost is the…

Q: Q/3 The Municipality Directorate has purchased vehicles in the amount of (120) million Iraqi dinars…

A: Accounting for Depreciation Constant Ration Method of Depreciation

Q: On June 1, 2019, Leni Company acquired a 5-year, 10%, P1,000,000 face value bonds for P920,000. The…

A: Investment is the amount which is spent by the producer for the purchase of those goods which…

Q: Goodard Inc. planned to use $154 of material per unit but actually used $148 of material per unit,…

A: Variance is considered as the difference between budgeted value and actual results. The management…

Q: Question 5 The following data were reported by a corporation Authorized shares 20,000 Issued shares…

A: Treasury shares are share reacquired by issuing company. They will not form part of Outstanding…

Q: that if a truck is driven 105,000 kild erating cost is 11.4 cents per kilome ers during a year, the…

A: 1) Total Kms Operating Cost per Km Total cost 1,05,000 11.4 11,97,000…

Q: a) Php21.82 b) Php19.84 c) Php14.22 d) Php12.24 10. Heinz Inc expects to generate earnings over the…

A: The question is related to Capitalization of earnings method. Estimated Value = Average Annual…

Q: on December 31, 2022 to be ab d of each month for the next 2 mount on deposit will earn ann d…

A: Given as, PMT=4000 RATE =2%/12 N=25 x 12=300

Q: Paradise Company plans the following beginning and ending inventory levels (in units) for June: June…

A: The units required to be manufactured can be calculated units sold plus the change in inventory of…

Q: ment are estima

A: Statement of Liquidation of partnership is a statement that shows the status of the liquidation…

Q: Amber Wison owner ot Canyon Canoe Company decides to start a new company that wil be operated as a…

A: When cash dividend is declared to the shareholders then it becomes current liability of the company…

Q: July 1 Investment of the owner 3 cash sales 13 loan 15 Collection of accounts 20 Purchase returns 29…

A: The cash flow from investing activities includes the cash flow due to sale or purchase of non cash…

Q: Purpose: To ascertain whether service revenue recognized during December, year 7, is complete and…

A: Service revenue- Service revenue is the sales reported by a industry that relate to services…

Q: A cash budget a. is an optional feature of a master budget. b. requires input from all parts of the…

A: A cash budget is an estimation of the cash flows of a business over a specific period of time.

Q: Kimberly-Clark expects sales to : r. Labor and materials costs, and 5%, but Kimberly-Clark is…

A: Due to the increase in variable cost and decrease in sale price, the contribution margin will fall .…

Q: D6) Describe and explain the matters which the remuneration committee should consider when preparing…

A: Remuneration- Remuneration is the whole amount paid to an employee. It may contain a salary or…

Q: On December 31, 2020 Mega Nhon Company changed its method of accounting for inventory from weighted…

A: Basic Closing inventory increase the gross profit which in turn increase the net profit. Tax is…

Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: The unearned rent account has a balance of P36,000. If P4,000 of the P36,000 is unearned at the end…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Exercise 12.14 Cost Report, Value-Added and Non-Value-Added Costs Sanford, Ic., has developed…

A: Cost reporting is the process of informing a client (or another party) about the scale of a building…

Q: 31.When a net loss has occurred, Income Summary is:

A: 31.When a net loss has occurred, Income Summary is: Ans - b. credited and owner’s capital is…

Q: Southwest Components recently switched to activity-based costing from the department allocation…

A: T-accounts also known as Ledger account are the posting of transaction from journal entries.…

Q: Sales variance is the difference between sales price and ---------- Labour rate variance Sales…

A: Sales variance =Actual sales - budgeted sales = Actual quantity * actual price - budgeted quantity *…

Q: On January 1, 2017, Jace and Naya Corporation acquired equipment at a cost of ₱1,800,000. Jace and…

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

Q: c Inc. produces soft drinks. Mixing is the first department, and its output is measured in gallons.…

A: Solution: Equivalent units are the units which represents the % of work completed during the period.…

Q: Lost of gööds sold to be shown along with för answer Purchases $ 30,526 Selling expense $ 769…

A: The cost of goods sold includes the cost of goods that are sold during the period.

Q: 1. Cash balance according to the company's records at August 31, $25,520. 2. Cash balance according…

A: Introduction: Bank reconciliation statement: To reconcile the difference between pass book and cash…

Q: PCC Inc has a debt-to-equity ratio or 3:1. After tax cost of debt is 5% while cost of equity is 10%.…

A: As per the guidelines, only one question is allowed to be solved. Please resubmit the question…

Q: to its customer is 2,000. If raw material inventory decreased by 5,000 and the prime cost is 150,000…

A: Direct material used = Purchase of material + Decrease in material - Indirect material used =…

Q: The list of vouchers Shoppe at December 31 is as follows: Vendor Invoice Date Amount Hagrid…

A: Reconciliation in the books of accounting is a very essential part because each transaction passes…

Q: portion of the equipment purchase. It w al end-of-year payments (see loan deta Payment FoY

A: For calculation of before tax cash flows, depreciation shall not be deducted because it is a non…

Q: Closing journal entries No. Account Titles Debit Credit 101 Cash $10,100 112 Accounts Receivable…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

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

Taxpayer enjoyed its last year of its
income tax holiday in 2020. For that
year, it reported however a net loss
of P500,000. For the taxable year
2021, it reported a net income of
P300,000. How much NOLCO must
have been used by the taxpayer in
2021? *
a. Zero
b. 100,000
c. 300,000
d. 500,000

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

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?
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.
In 2019, Tim, a single taxpayer, has ordinary income of $29,000. In addition, he has $2,000 in short-term capital gains, long-term capital losses of $10,000, and long-term capital gains of $4,000. What is Tim's AGI for 2019? $26,000 $27,000 $29,000 $32,000
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
During 2019, Carl (a single taxpayer) has a salary of $91,500 and interest income of $11,000. Calculate the maximum contribution Carl is allowed for an educational savings account. $0 $400 $1,000 $2,000 Some other amount
Emily, who is single, sustains an NOL of 7,800 in 2019. The loss is carried forward to 2020. For 2020, Emilys income tax information before taking into account the 2019 NOL is as follows: The 2019 single standard deduction is 12,200; Emilys itemized deductions will exceed the 2020 single standard deduction (after adjustment for Inflation). The medical expense AGI floor is 10% In 2019. How much of the NOL carryforward can Emily use in 2020, and what is her adjusted gross income and her taxable income?