The Net Income of Mr. Richard was £130,000 during the tax year 2019-2020. He travelled 10,000 miles for business trip by his own car. His employer paid him 0.50 penny per mile for each business mile. His taxable income after mileage allowance was £: a. 112,500 b. 125,000 c. 130,500 d. 135,000

The Net Income of Mr. Richard was £130,000 during the tax year 2019-2020. He travelled 10,000 miles for business trip by his own car. His employer paid him 0.50 penny per mile for each business mile. His taxable income after mileage allowance was £: a. 112,500 b. 125,000 c. 130,500 d. 135,000

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 56P

See similar textbooks

Related questions

Q: During 2020, Rick and his wife, Sara, had the following items of income and expense to report:…

A: Given that: Rick and Sara both are husband and wife

Q: Lyndon, age 24, has a nonworking spouse and earns wages of $36,000 for 2019. He also received rental…

A: Payroll: The total payment that a company is required to pay to its employee for the services…

Q: Vernon is a cash basis taxpayer with a calendar tax year. On October 1, 2020, Vernon entered into a…

A: General rule vs 12 months for prepaid expense for Cash basis taxpayer The general rule is stating…

Q: Ciara had $78,000 of income from wages and $2,950 of taxable interest. Ciara also made contributions…

A: Introduction Income from wages: Wage income is the total of all earnings earned by a person in a…

Q: The taxpayer is a resident citizen who is married. The spouse had a gross compensation income of…

A: Gross compensation income It is the taxable income, that is arising from an employer/employee…

Q: Leonard is employed and received a gross salary of £3,452 per month during tax year 2021-22. He also…

A: For Class1 On income between £797 and £4,189 tax rate is 12% For Class2 rate of tax is £3.05 a week.…

Q: In 2020, what is the amount of self-employment tax that would be paid by Andy for the year assuming…

A: The self-employment tax is the tax that is paid by the freelance and sole proprietor on his net…

Q: Alice is single and self-employed in 2021. Her net business profit on her Schedule C for the year is…

A: As of the year 2021, the self-employment tax rate is 15.3% consisting of 12.4% of social security…

Q: Sven operates a shop. During the 2020 tax year, he had on hand: $70,000 of trading stock on 1 July…

A: The profitability status of the company can be arrived from the income statement prepared by the…

Q: Mr. Daniel had an Total Net Income of £104,000 in 2019-2020 tax year. His personal pension…

A: Adjusted net income is the total taxable income before deducting personal allowances less gross…

Q: William, a resident, has taxable income for 2020/21 of $60,000. The PAYG amounts withheld by his…

A: Pay as you Go [PAYG] is the amount of tax withheld by the employer from the pay out of the employee…

Q: Ms. Anna Frozen operates an ice cream store while she offers bookkeeping services to her clients. In…

A: An individual who has an income source purely from self-employment and their turnover of gross sales…

Q: How much is the total donor's tax due of Spouses Oredan?

A: Donation tax is the tax which has to be charged on the donations made during the year and the…

Q: In 2021, Madeline earns $51,000 from her regular job. She also earns $2,000 in ordinary dividends…

A: There are 5 types of filing status prescribed by the IRS:- 1. Single 2. Married filing jointly 3.…

Q: Gina, a real estate dealer sold a house and lot for P600,000 on November 20, 2018. The cost of the…

A: Income Tax: Any individual earn income by using the country's resources then he or she will be…

Q: Erin, who is a self-employed party consultant, made $60,000 in net income from her business in 2020.…

A: Self employment tax is defined as the tax imposed that the small business owner need to pay to the…

Q: In 2019, Mr. Jupiter, a nonresident citizen and with one dependent child, had a net capital loss of…

A: The question is based on the concept of charging capital gain in the country of Philippines.

Q: Mr. Albert lives in a company flat accommodation which is not job related. The cost of the…

A: The correct option is A. 4,000

Q: Ms. White has net tax owing for 2017 of $4,500, net tax owing for 2018 of $8,000, and estimated net…

A: Taxes are the amount of dues and obligations which needs to be settled or paid by the business on…

Q: At the start of the 2019 tax year, Franny had $40,000 trading stock on hand in her café. Throughout…

A: The transactions of the company will be recorded first in the company's books which is called as…

Q: 019/20, Emmanuel receives an employment income of £180,000 from ABC Ltd. He made a gross gift aid…

A: In the given situation, Emmanuel receives income of 180,000 from ABC Ltd. He made a gross aid…

Q: Based on ph Joji, a resident citizen, has the following cumulative data from January to June 30,…

A: Sales and Salary expenses reported in the income tax return: Whether all the revenue from sales or…

Q: Ahmed is self-employed. He has a revenue of $170,000. His expenses for the year is $50,000. The…

A: The federal income tax appears to be a tax on earnings imposed by the US government. The Internal…

Q: In 2020, Juan entered into a contract to write a book. The publisher advanced Juan $50,000, which…

A: Marginal tax Rate: It is the additional tax payable for every additional dollar earned as income.…

Q: Mr. and Mrs. Reyes are married individuals, Mr Reyes receives an annual taxable income of 365,000…

A: As per the provision in Philippines following ax slabs is applicable No Income tax if income is…

Q: In 2020, Marley, age 70 and head of household (unmarried), had income of $37,000 and exclusions of…

A: AGI stands for Adjusted Gross Income. AGI is the difference between gross income & adjustments…

Q: Henrich is a single taxpayer. In 2020, his taxable income is $450,000. What is his income tax and…

A: Income tax liability: It is the amount of tax a taxpayer is liable to pay on the taxable income…

Q: Marco Leopizzi earns £45,000 in tax year 2021-22. He also received bonus of £20,000 in a year, house…

A: Introduction:- Marco Leopizzi will be paid £45,000 in the fiscal year 2021-22. He also earned a…

Q: Mario, a single taxpayer with two dependent children, has the following items of income and expense…

A: Part( a )Mario's taxable income or loss for 2020. Adjusted Gross Income :- Gross receipts from…

Q: Harold, a single taxpayer, has $30,000 of ordinary income after the standard deduc-tion, and $10,000…

A: Answer and explanation are given below

Q: Faisal is self-employed, and for the tax year 2021-22 had a trading profit of E47,500. He has…

A: Lets discuss basics. As per HMRC rules, Sole trader needs to pay class 2 NI @ 3.05 per week for…

Q: Mr. X was injured in a vehicular accident in 2018. He incurred and paid medical expenses of P20,000…

A: As per the taxation provisions by BIR [Sec 32 (B)(4)Tax Code any…

Q: rried, resident citizen with two qualified dependent children, has the following data for the year…

A: Taxable Compensations : Federal and state payroll tax laws generally identify taxable compensation…

Q: In 2020, Juliet Ulbod earned P500,000.00 as income from her beauty parlor and received P250,000.00…

A: Gifts are subject to donor's tax. The tax is levied, assessed, collected and paid upon the transfer…

Q: In 2019, Michael has net short-term capital losses of $1,500, a net long-tern capital loss of…

A: As per IRS, "If a taxpayer’s net capital losses are more than their net capital gains, they can…

Q: Mr. Sotto is a resident citizen who earned the following during the current taxable year: (1)…

A: In Philippines the income which are derived to the resident Citizen which has to be withhold taxes…

Q: In 2020, Mary, age 70 and head of household (unmarried), had income of $37,000 and exclusions of…

A: A tax is a compulsory contribution or financial charge that is levied by the government on the…

Q: Jamie receives a basic pay of P29,880 a month and a 2% commission on her sales. She sold P505,000 in…

A: Total Taxable Income will be Salary (P29880*12) P358560 Commission (P505,000 * 2%) P10,100…

Q: Oscar, a single taxpayer, sells his residence of the last 10 years in January of 2019 for $190,000.…

A: Capital gain: When the taxpayer earned income from the transfer of assets than its chargeable under…

Q: He belongs to a medical aid fund to which he contributed R3 000 per month to during the year of…

A: Introduction: When one account incurs expenditures or receives money on behalf of one or more other…

Q: Mr. Asif, a Salaried Individual, has following information for the Tax Year 2020. His Annual Tax…

A: Computation of Income Tax for the year ending 2020 Particulars Amount (Rs) Income from Salary…

Q: Alice is single and self-employed in 2021. Her net business profit on her Schedule C for the year is…

A: Self-employment tax: It is a tax that includes social security tax and medicare tax for calculating…

Q: If Juan Da Kuan is a resident citizen and is earning purely business income for 2018 taxable year…

A: Net taxable is calculated after reducing the deductible expenses from the income. Income should be…

Q: A taxpayer filed his income tax return on June 30, 2019. The deadline for the return was April 15,…

A: Taxable Income:- It is the income on which one pays tax as per rate prescribed by the taxation…

Q: Diego, age 28, married Dolores, age 27, in 2019. Their salaries for the year amounted to $80,000 and…

A: Tax liability: When the assessee is earned the income of among any of the sources of income then its…

Q: Is RR allowed to avail himself of the eight percent (8%) income tax? How will RR’s tax liability be…

A: Tax liability is the liabilities which have to be computed as per the tax rates specified by the…

Q: In the 2019 tax year, Michelle paid the following amounts relating to her 2017 tax return: Tax…

A: Income tax: Income tax refers to the direct tax levied on individual person or business and…

Q: Hongtao is single and has a gross income of $92,700. His allowable deductions for adjusted gross…

A: Solution Taxable income refers to any individual's or business compensation that is used to…

Q: Rowena is employed as an architect throughout 2020/21 and received the following income during the…

A: pay 0% on earnings up to £12,500* for 2020-21. then you pay 20% on anything you earn between £12,501…

Q: Popoy is a messenger of Basha Logistics. He receives a monthly salary of P25,000. At the end of the…

A: computation of taxable income of Mr. Popoy for the year particulars Amount (PHP) Basic…

Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

112,500

125,000

130,500

135,000

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

In 2019, Lou has a salary of $53,300 from her job. She also has interest income of $1,600 and dividend income of $ 400. Lou is single and has no dependents. During the year, Lou sold silver coins held as an investment for a $7,000 loss. Calculate the following amounts for Lou: Adjusted gross income $ ____________________ Standard deduction $ ____________________ Taxable income $ ____________________
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.
On January 1, 2019, Kunto, a cash basis taxpayer, pays 46,228 for a 24-month certificate. The certificate is priced to yield 4% (the effective interest rate) with interest compounded annually. No interest is paid until maturity, when Kunto receives 50,000. In your computations: a. Compute Kuntos gross income from the certificate for 2019. b. Compute Kuntos gross income from the certificate for 2020. Round any amounts to the nearest dollar.
Tom has a successful business with $100,000 of taxable income before the election to expense in 2019. He purchases one new asset in 2019, a new machine which is 7 -year MACRS property and costs $25,000. If you are Tom's tax advisor, how would you advise Tom to treat the purchase for tax purposes in 2019? Why? ______________________________________________________________________________ ______________________________________________________________________________
On June 30, 2019, Kelly sold property for 240,000 cash and a 960,000 note due on September 30, 2020. The note will also pay 6% interest, which is slightly higher than the Federal rate. Kellys cost of the property was 400,000. She is concerned that Congress may increase the tax rate that will apply when the note is collected. Kellys after-tax rate of return on investments is 6%. a. What can Kelly do to avoid the expected higher tax rate? b. Assuming that Kellys marginal combined Federal and state tax rate is 25% in 2019, how much would the tax rates need to increase to make the option identified in part (a) advisable?
Marlene, a cash basis taxpayer, invests in Series EE U.S. government savings bonds and bank certificates of deposit (CDs). Determine the tax consequences of the following on her 2019 gross income: a. On September 30, 2019, she cashed in Series EE bonds for 10,000. She purchased the bonds in 2009 for 7,090. The yield to maturity on the bonds was 3.5%. b. On July 1, 2018, she purchased a CD for 10,000. The CD matures on June 30, 2020, and will pay 10,816, thus yielding a 4% annual return. c. On July 1, 2019, she purchased a CD for 10,000. The maturity date on the CD was June 30, 2020, when Marlene would receive 10,300.