the taxpayer. S3: All deductions are based on actual expenses incurred. Group of answer choices c. Only S3 is true d. All is false b. Only S2 is true a. Only S1 is true
Q: 58. In relation to the above, how, much is Mr. Harry's tax due? A. PO C. P1,000 B. P2,000 D.…
A: Tax due refers to all the federal income taxes, interest, alternative minimum taxes and any other…
Q: 54. Statement of Financial Position 2021 2022 2023 Assets Current Assets Cash and…
A: The net income of the company means the income that is calculated after deducting all the expenses.…
Q: For fiscal year 2021, ABC Corporation, a retailer, has P1.4 billion in gross sales, P560 million in…
A: Income tax due is the amount being paid by the taxpayer or the business owner over the net income…
Q: The supplementary ledger account of material Z presented the following entries in June 200X: No Date…
A: Ending inventory is the goods that are left with the entity at the end of the period.
Q: On December 31, 2021, JV Company purchased for P4,000,000 cash all of the outstanding ordinary…
A: Goodwill reported on consolidated financial position represents the amount excess paid over the…
Q: 5. Compute the following financial ratios for 2015 and 2016 and interpreting the results in the…
A: as per the guidelines we can provide the answer for 3 sub part ( first 3) of any question . answer…
Q: , Understatement of NCA for regular recorded by bank P800,000, Lapsed NCA for regular account with…
A: Ideally cash balance as per cash book and bank balance as per bank statement should reconcile with…
Q: Discuss how a deferred tax provision can arise under IAS 12, Income Taxes, and the available methods…
A: the above requirement are discussed below
Q: Answer questions number 1, 2 and 3 correctly. 1. Explain the treatment of share issuance costs. 2.…
A: Solution Concept Shareholders are the owners of the company They have the residual interest in the…
Q: A liability in 2021 is reported for financial reporting purposes but not for tax purposes. When this…
A: Deferred tax is the amount of future tax payable due to difference in the taxable income of current…
Q: Using the following information, what is the amount of gross profit? Purchases $32,000 Selling…
A: Given that, Purchases = $32,000 Beginning merchandise inventory = $5,700 Ending merchandise…
Q: Merchandise is purchased for $6,000 on September 2 subject to terms of 2/10, n/30, FOB destination.…
A: Freight cost: Freight cost is the fee paid to a carrier company for transporting goods from their…
Q: A. What amount should be reported as basic earnings per share? B. What amount should be reported as…
A: What Is Earnings Per Share (EPS)?Earnings per share (EPS) is computed by dividing the company's…
Q: 12/31/17 12/21/18 Cost incurred to date ? 4,900,000 Estimated cost to complete 14,200,000 9,000,000…
A: Under percentage of completion method the revenue is recognised over the life of the construction…
Q: Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in…
A: Introduction: AGI, or adjusted gross income, is your gross income less certain adjustments. This…
Q: On January 1, 2021, Raffy Company took out a loan of P24,000,000 in order to finance specifically…
A: Borrowing costs are capitalized on the assets when its directly attributable to the acquisition,…
Q: Calculate the value of the fixed manufacturing costs in the opening and closing inventories, using…
A: Solution: Fixed manufacturing overhead per unit = OMR 225,000 / 5000 = OMR 45 per unit
Q: 9 Explain how the effectiveness of general control affects the auditor's test of automated…
A:
Q: Al Kawthar Company has oil and gas properties located only in the United States. Data for Al Kawthar…
A: Given: - Particulars Amount ($) Book value 37,500,000 Production during 2020: Oil 19,000,000…
Q: X owns 99% of the capital stock of AAA Corporation. X also owns 99% of BBB Corporation. AAA…
A: The Correct Option is "A" i.e.AAA Corporation and BBB Corporation, although both are owned by X, are…
Q: Loren Company uses many kinds of machines in operations. The entity acquires some machines from…
A: Note: Insurance costs incurred on the machine for the transit to the destination are only…
Q: Question 13 Which of the following alternatives represents the correct amount that must be disclosed…
A: Cash Flow Statement is the summary of Cash Receipts and Cash Payments for the period. There are…
Q: On January 1, 2021, Tonge Industries had outstanding 540,000 common shares ($1 par) that originally…
A: Basic earnings per share: - Basic EPS measures how much a business earns per share without going…
Q: What is preferred stock and common stock?
A: The term "stock" refers to a company's ownership or equity. Common stock and preferred stock are the…
Q: Momix Corp. has two divisions, King and Queen. King produces a widget that Queen could use in its…
A: Transfer price means the price charged by one department from other department of the same company…
Q: 5. How should accounting fees for acquisition be treated? A. Expensed in the period of acquisition…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Use the following information to prepare the September cash budget for PTO Company, Ignore the "Loan…
A: Budgets are forecasted figures that help in estimating the various incomes and expenses. Budgets are…
Q: xplain the functioning of different players in financial market.
A: Financial Market In general, a financial market is a market where we can sell and buy securities.…
Q: 7.4A Extract a trading and profit and loss account for the year ended 30 June 20X8 for G Graham. The…
A: The trading account and profit and loss account are prepared to calculate the gross profit and net…
Q: value aft
A: Service Output Method also known as Working Hours Method. The formula : Depreciation per hour as, =…
Q: 3. What is the total spending variance? a. P4,000 unfavorable b. P3,000 unfavorable c. P4,000…
A: Spending Variance A spending variance is the difference between the actual amount of a particular…
Q: odic inventory system. One of the company’s products is a special equipment for the oil drilling…
A: First in first out refers to the inventory method under which the inventory purchased first is old…
Q: In the accounting literature, there is substantial scepticism towards the adoption of the…
A: The process of defining, assessing, and reporting transactions to regulatory authorities, tax…
Q: The account of ABC Corp. prepared a statement of affairs. Total assets which there are no claims or…
A: The answer is stated below:
Q: 2. At December 31, 2017, Carter would report gross amount of Construction in Process as a. $600,000.…
A: IAS 11 Construction Contracts provides requirements on the allocation of contract revenue and…
Q: Record this series of transactions in the general journal of Company B (The company records…
A: Journal Entry It is important for the company to include the required work in the journal in order…
Q: WW and RR share profits and losses equally, WW and RR receive salary allowances of P20 000 and P30…
A: Stock represents the ownership right in the company. Owners of the company can get dividend if…
Q: Alternative A Alternative B Capital Investment Annual Expenses $20,000 $38,000 5,500 4,000 Market…
A: Annual worth(AW) method is mostly used to compare different alternatives available. AW is the net…
Q: nuary 1, 2021, Gringo Company had capitalized cost of P5,000,0 ct with an economic life of 5 years.…
A: Solution:- Calculation of carrying value of software on 31st Dec, 2021 Software value as on 1st…
Q: How much is the excessive tax benefits to be credited to tax expense on January 2, 2019 according to…
A: Stock based compensation is the type of compensation or the option which are given to the employees…
Q: Natalie owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses…
A: Income tax payable is an obligation for the tax payers to the government on the taxable income.…
Q: 2,150,000 1,750,000
A: Journaling is the process of recording business transactions in accounting records. This activity…
Q: On January 15, 2022, 5,000 share with par value of P 100 per share of MANE Company were issued in…
A: When assets are acquired in exchange for shares, the assets are recorded at the fair value of the…
Q: A. How much is the net cash flow from operating? O P1,315,000 O P1,405,000 O P1,565.000 O P1,155,000…
A: Cash flow statement means the statement which shows the movement of cash in the business. It include…
Q: 5.) Show in tabular form [depreciation schedule] the computation for the annual depreciation…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: During 2020, Carpenters Corporation purchased equity securities and carried them at fair value…
A: Fair value: It implies to the actual price that is to be received by the seller on selling it's…
Q: 9.5 Irish Catering started in business on 1 January 2010, its financial year ending 31 December. The…
A: Depreciation is the amount which is to be reduced from value of assets to recognise the normal…
Q: . On December 31, 2021, JV Company purchased for P4,000,000 cash all of the outstanding ordinary…
A: The value of goodwill is calculated by reducing the carrying value of liabilities from the fair…
Q: CLASS ACTIVITY:CASE PROBLEM The Overland Company wants to develop a cost estimating equation for its…
A: The high low method is used to separate the fixed and variable costs from the mixed costs of the…
Q: 5. Compute the following financial ratios for 2015 and 2016 and interpreting the results in the…
A: (Note: Since you have posted a multi-part question, we will solve the first three sub-parts. For the…
S1: Proof of deductions is mandatory.
S2: Deductions are liberally construed in favor of the taxpayer.
S3: All deductions are based on actual expenses incurred.
Step by step
Solved in 2 steps
- Taxpayers who are blind get the benefit of: An additional exemption An additional amount added to their standard deduction An additional amount added to their itemized deductions None of the aboveAll are true except: a. OSD is a substitute for itemized deduction. b. The OSD relieves the taxpayer of the responsibility to deduct withholding taxes. c. Taxpayers who choose OSD are not required to submit their financial statements with their ITR. d. The option to claim OSD must be signified in the income tax return, otherwise, itemized deduction is presumedAll are true except: OSD is a substitute for itemized deduction. The OSD relieves the taxpayer of the responsibility to deduct withholding taxes. Taxpayers who choose OSD are not required to submit their financial statements with their ITR. The option to claim OSD must be signified in the income tax return, otherwise, itemized deduction is presumed.
- Statement 1: Exclusions pertain to the computation of gross income, while deductions pertain to the computation of net income. Statement 2: Exclusions are something received or earned by the taxpayer which do not form part of taxable gross income, while deductions are something spent or paid in earning gross income. a. Both statements are true b. Both statements are false c. Only statement 1 is true d. Only statement 2 is trueMark each statement below as either "True" or "False" regarding the standard deduction and itemized deductions. a. The standard deduction is an amount that varies with filing status. b. A taxpayer should claim the smaller of the standard deduction or the total allowed itemized deductions. c. Total itemized deductions depend on the amount and type of items, with some items having limitations based on AGI. d. Taxpayers who are 65 years of age or older or blind are entitled to an additional itemized deduction amount.1. How much is the net taxable income using itemized deductions? 2. How much is the OSD (assuming taxpayer opted to use OSD)? 3. How much is the net taxable income using OSD?
- Which of the following types of expenses is deductible? Group of answer choices A.Bribes & Illegal Kickbacks B.Expenses related to Tax-Exempt Income C.Political Contributions D.Contingency Attorney FeesUnder the cash method of tax accounting, tax deductions are taken when: a, Expenditures are made b, There is a fixed and determinable liability c, The taxpayer elects to take the deduction d, None of the above1.The definition of gross income in the tax law is: A. All items specifically listed as income in the tax law B. All cash payments received for goods provided and services performed C. All income from whatever source derived D. All income from whatever source derived unless the income is earned illegally 2.Which of the following is not taxable for income tax purposes? A.Prizes B.Severance pay C.Gifts D.Partnership income E.All of the above are taxable 3.All of the following items are taxable to the taxpayer receiving them, except: A.Life insurance proceeds B.Unemployment compensation C.Embezzled funds D.Prizes E.Gambling winnings
- True (t) or False (f) ______ The IRS does not require the taxpayer to use the same depreciation method on the tax return that is used in preparing financial statements.Which one of the following is not true of itemized deductions of an individual taxpayer? Deductions for AGI are generally preferable to itemized deductions. Itemized deductions are deductible only if they exceed a taxpayer's standard deduction. Residential interest is a common example of an itemized deduction. All employee trade or business expenses are itemized deductions.In cases of deductions and exemptions on income tax returns, doubts shall be resolved Group of answer choices liberally in favor of the employer liberally in favor of the taxpayer Strictly against the government Strictly against the taxpayer
