The following income received by officials and employees in the public sector are not subject to income Eax and withholding tax on compensation, except The excess of the 13th month pay and other benefits paid or accrued during the year over P90,000 Representation and transportation allowance (RATA) granted under the General Appropriations Act Personnel Economic Relief Allowance (PERA) granted to government personnel Monetized value of leave credits paid to government officials and employees
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- LO.2 Oak Corporation has the following general business credit carryovers. If the general business credit generated by activities during 2019 equals 36,000 and the total credit allowed during the current year is 60,000 (based on tax liability), what amounts of the current general business credit and carryovers are utilized against the 2019 income tax liability? What is the amount of unused credit carried forward to 2020?Statement 4: Income of a government owned and controlled corporation is not taxable Statement 5: For a rank and file employee, excess de minimis benefits shall form part of his taxable regular compensation. Statement 6: For a managerial employee, excess de minimis benefits shall form part of his 13th month pay and other benefits. Identify if the statements are true or false1-13 Organizational Expenditures. G Corporation, an accrual basis taxpayer, incurred and paid $41,000 of qualifying organizational expenditures in 2021. Assuming G Corporation wishes to maximize its deductions, compute the maximum amount of organization costs that may be deducted for each of the following years if G Corporation adopts a calendar tax year. For 2021, if G Corporation began business on September 1. Calendar year 2022? Calendar year 2026? How would your answer to (a) change if the $41,000 had been paid in February 2022? How would your answer to (a) change if G Corporation were a cash basis taxpayer and the $41,000 had been paid in February 2022? How would your answer to (a) change if G Corporation had incurred $12,000 of the $41,000 qualified expenditures in January 2022.
- Question The following are the balances extracted from the public Accounts on the consolidated fund from the year ended 31 December 2016. GHS000 Direct Tax 1044460 compensation of employee 808672 Goods and Services 404336 Non-financial Assets 134779 Indirect tax 939556 Grants 28110 Interest Expenses 398138 Social benefits 238882 Other Expenses 159255 Other revenue…1. Match each form name with its associated description. Form 1099-NEC Form 1096 Form W-9 Request for Taxpayer Identification Number and Certification Nonemployee Compensation Annual Summary and Transmittal of U.S. Information Returns 2. The SUTA taxes for an employee whose year-to-date earnings prior to the current period are $12,400, who earns $1,500 during the current period, who works in a state with a credit reduction of 1.5%, and whose state imposes a SUTA tax rate of 2.5% with an associated wage base of $12,600 would be$______ 3. Which of these states does NOT levy SUTA tax on employees as well as employers? Answer: A. New Jersey B. Alaska C. Pennsylvania D. Rhode IslandMa1. Torquay Incorporated's (a calendar-year taxpayer) 2021 taxable income was $15,837,850, and its tax liability was $3,325,948. Torquay's director of tax estimates that the corporation's 2022 taxable income will be $13,350,000. Compute Torquay's 2022 estimated tax payment due on April 15, 2022.
- The amount of compensation subject to OASDI tax is correctly defined as Select one: a. all amounts either earned by, or paid to, an employee during a calendar year. b. all amounts paid to an employee during a calendar year up to the limit defined by Congress. c. all amounts paid to an employee during a calendar year. d. all amounts paid to an employee during a calendar year up to the limit defined by the IRS. e. all amounts earned by an employee during a calendar year.Statement 1: Additional compensation allowance (ACA) of a government employee is a taxable supplemental compensation. Statement 2: The amount of non-taxable 13th month pay and other benefits is P82,000 under the TRAIN. Only statement 1 is true Only statement 2 is true Both statements are true Both statements are falseCHOOSE THE LETTER OF THE CORRECT ANSWER What is the employee benefit expense for the current year? a. 1,180,000b. 2,100,000c. 1,850,000d. 1,050,000 What is the remeasurement gain or loss on plan assets on Dec. 31? a. 670,000 gainb. 670,000 lossc. 650,000 gaind. 650,000 loss
- CASE IV JKL Company provided the following information to its accountant to determine the tax due for the current year 2021 as well as any tax consequences of items that cause difference between financial and taxable income: Accounting income before tax, P15,600,000 Accounting Depreciation, P500,000 Litigation loss accrued during the year, P80,000, taxable only when paid. Tax depreciation, P1,500,000 Accrued liability on employees’ health care P250,000 Development cost of computer software, P3,000,000. The computer software is expected to be useful for 3 years starting this year. Nondeductible expenses, P1,250,000 Nontaxable revenue, P2,100,000 Revenue subject to 20% tax rate, P750,000 Bad debts expense for the period, P75,000 Bad debts written off during the year, P45,000 Gross income of installment sales of P450,000 (taxable when collected expected on 2022) The tax rate applicable for this year onwards is 30%. QUESTION: 7. Net income for the year is?CASE IV JKL Company provided the following information to its accountant to determine the tax due for the current year 2021 as well as any tax consequences of items that cause difference between financial and taxable income: Accounting income before tax, P15,600,000 Accounting Depreciation, P500,000 Litigation loss accrued during the year, P80,000, taxable only when paid. Tax depreciation, P1,500,000 Accrued liability on employees’ health care P250,000 Development cost of computer software, P3,000,000. The computer software is expected to be useful for 3 years starting this year. Nondeductible expenses, P1,250,000 Nontaxable revenue, P2,100,000 Revenue subject to 20% tax rate, P750,000 Bad debts expense for the period, P75,000 Bad debts written off during the year, P45,000 Gross income of installment sales of P450,000 (taxable when collected expected on 2022) The tax rate applicable for this year onwards is 30%. QUESTION: 1. Compute the taxable income11. The following differences enter into the reconciliation of financial income and taxable income of Abbott Company for the year ended December 31, 2021, its first year of operations. The enacted income tax rate is 30% for all years. Pretax accounting income - P700,000 Excess tax depreciation - (320,000) Litigation accrual - 70,000 Unearned rent revenue deferred on the books but appropriately recognized in taxable income - 50,000 Interest received on government obligations - (20,000) Taxable income - P480,000 1.Excess tax depreciation will reverse equally over a four-year period, 2022-2025. 2.It is estimated that the litigation liability will be paid in 2025. 3.Rent revenue will be recognized during the last year of the lease, 2025. 4.Interest received on government obligations is expected to be P20,000 each year until their maturity at the end of 2025. Deferred tax asset for the year ended 2021 is