Question 1 – Which one of these lists contain ALL items that are used when computing net employment income (Division B, Subdivision a)?A) employee contributions to a registered pension plan; signing bonus on accepting employment; use of an employer-owned automobile.B) monthly automobile allowance; dental plan paid for by the employer; promotional cost incurred in selling the employer's products.C) subsidized meals in employer's facilities; life insurance paid by the employer; legal fees incurred to collect unpaid salary.D) tips and gratuities; dental insurance paid by the employer; exercise of options to purchase shares of the publicly traded employer. Part 1 (ITA 3)Division B Net Income to Division C Taxable Income to Taxes Payable for IndividualsITА 3(a)+ Bin #1- Net Employment - losses carry forward 20 years and carry back 3 years (carrying baskets)+ Bin # 2 - Net Business & Property – losses carry forward 20 years and carry back 3 years (carrying baskets)+ Bin # 4 - Other IncomeITА 3 (b)+ Bin # 3 – Net Capital – losses carry forward for infinity and carry back 3 years (carrying basket)IТА З (c)- Bin # 5 - Other Deductions= Sources of IncomeITA 3 (d)Losses in current year from Bins 1, 2, 4= Division B Net IncomeEquivalent to Capital Gains Deduction for Employee Stock OptionsITA 110Payments included to calculation Division B but not included for Division C (e.g. social assistance)- Losses from other years (carrying baskets Bin #1 & 2)ITA 111Losses from other years (carrying basket Bin #3 limited to Net Capital Income included in ITA 3 (b)= Division C Taxable Incomex Applicable Tax RatesΙΤΑ 118Tax Credits= Division E Taxes Payable for Individuals

According to the Net Taxable Income, these steps needed to be followed: 1) Find Gross Annual Income…

Which one of these lists contain ALL items that are used when computing net employment income (Division B, Subdivision a)? A) employee contributions to a registered pension plan; signing bonus on accepting employment; use of an employer-owned automobile. B) monthly automobile allowance; dental plan paid for by the employer; promotional cost incurred in selling the employer's products. C) subsidized meals in employer's facilities; life insurance paid by the employer; legal fees incurred to collect unpaid salary. D) tips and gratuities; dental insurance paid by the employer; exercise of options to purchase shares of the publicly traded employer.

Which one of these lists contain ALL items that are used when computing net employment income (Division B, Subdivision a)? A) employee contributions to a registered pension plan; signing bonus on accepting employment; use of an employer-owned automobile. B) monthly automobile allowance; dental plan paid for by the employer; promotional cost incurred in selling the employer's products. C) subsidized meals in employer's facilities; life insurance paid by the employer; legal fees incurred to collect unpaid salary. D) tips and gratuities; dental insurance paid by the employer; exercise of options to purchase shares of the publicly traded employer.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter3: Taxes On The Financial Statements

Section: Chapter Questions

Problem 4RP

See similar textbooks

Similar questions

PROBLEM 1 Xavier Company provided the following information for its first year of operations ended December 31, 2021 in connection with the preparation of its income tax return:Taxable income P 4,000,000Non-deductible expenses 200,000Non-taxable revenue 300,000Deferred income on installment saleincluded in financial income but taxable in 2022 450,000Doubtful accounts recorded 100,000Financial depreciation 300,000Tax depreciation 350,000Estimated warranty cost accrued in2021 but not deductible for tax purposes until paid…
[Fourth Item: Problem Solving] Izzy Transport is engaged in the transportation business. It is registered as a domestic common carrier by land. The receipts for June of the current taxable year are as follows: Sourced from the transport of passengers P1,800,000 Sourced from the transport of goods 2,200,000 Sourced from the transport of cargoes 800,000 The common carriers’ tax due and payable is a. Nil b. P54,000 c. P78,000 d. P90.000
PROBLEM 3 The following information was extracted from the records of Aloha Company on December 31, 2021:Carrying amount Tax baseAccounts receivable P 1,500,000 P 1,750,000Motor vehicle 1,650,000 1,250,000Provision for warranty 120,000 NilDeposits received in advance 150,000 NilThe depreciation rates for accounting and taxation are 15% and 25% respectively. The deposits are taxable when received and warranty costs are deductible when paid. An allowance for doubtful accounts of P250,000 has been raised against accounts receivable for accounting purposes but such accounts are deductible only when written off as uncollectible. Alpha Company showed net income of P8,000,000 in its 2021 income statement. There are no temporary differences at the beginning of the current year. The tax rate is 30%. a. Determine the deferred tax liability on December 31, 2021. b.Determine the deferred tax asset on December 31, 2021. c. Determine the current income tax expense.
Part 1XYZ Co. at the end of 2018, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows:Pretax financial income € 750,000Estimated expenses deductible for taxes when paid 1,200,000Extra depreciation (1,350,000)Taxable income € 600,000 Estimated warranty expense of €800,000 will be deductible in 2019, €300,000 in 2020, and €100,000 in 2021. The use of the depreciable assets will result in taxable amounts of €450,000 in each of the next three years. Instructions (a) Prepare a table of future taxable and deductible amounts.(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2018, assuming an income tax rate of 40% for all years.
True or false With one liner explanation 1. Scheduled C is used only when an individual is an employee of a company. 2. For expense to be considered deductible in the business, they must be ordinary, necessary and reasonable in the taxpayer’s trade or business. 3. A warehouse would be depreciated over ten years for MACRS tax purposes. 4. Rental property is depreciated using double-decline balance method over 40 years. 5. Ordinary income is an expenses that is customary or usual for the rental property activity. 6.All expenses related to rental property are deductible in the current year, including capital improvements.
QUESTION 1 The following information has been provided for the year ended 31 December 2022 Depreciation for Accounting purposes Machinery R16 000 Equipment R27 500 Wear and Tear Machinery R25 000 Equipment R30 000 Dividends received R35 000 Revenue received in advance R26 000 (2022) Revenue received in advance R18 000 (2021) Profit before tax is R300 000 after taking the above figures into account. Assume a tax rate of 28% Required. CALCULATE the current tax for the year ended 31 December 2022 Show the calculations
a. Land with an assessed value of $750,000 for property tax purposes is acquired by a business for $900,000. Ten years later, the plot of land has an assessed value of $1,200,000 and the business receives an offer of $2,000,000 for it. b. Assuming that the land acquired in (a) was sold for $2;125,000, how would the various elements of the accounting equation be affected? Answer sub-part b alone.
1.Whatare the conditions under Income Tax Act, ACT 896 forexpenditure to be allowed as a deduction when computingbusiness, employment or investment income?2.List5 allowable deductions from the assessable income3.Assumethat the written down value of assets in the pool 2 isGH 100 000 and the repairs and improvements is GH 20 000What will be the tax allowable expenses?4.Giventhat the assessable income for the company isGH 140 000 the finance cost is GH 90 000 and there is nocorresponding finance gain, what is the allowable expense?
[Fifth Item: Multiple Choice] Hyzel Shipping Transport is engaged in the transportation business It is engaged in domestic shipping activities. The following receipts for June of the current taxable year are as follows: Sourced from the transport of passengers P1,800,000 Sourced from the transport of goods 2,200,000 Sourced from the transport of cargoes 800,000 The common carriers’ tax due and payable is a. Nil b. P54,000 c. P78,000 d. P90.000
Show the solution in good accounting form. Thank you! 1. What amount should be reported as current tax expense for the current year? a. ₱ 1,350,000 b. ₱ 2,250,000 c. ₱ 1,950,000 d. ₱ 1,050,000 2. What amount should be reported as total income tax expense? a. ₱ 2,250,000 b. ₱ 1,050,000 c. ₱ 1,350,000 d. ₱ 1,950,000 3. What amount of income tax payable should be presented at year-end? a. ₱ 1,050,000 b. ₱ 2,250,000 c. ₱ 1,350,000 d. ₱ 1,950,000
Accrued Expenses: Entity D acquired a piece of land on April 1, 20x1. The purchase price was reduced by a credit for the real property taxes accrued during the year. Entity D records real property taxes at each month-end by adjusting the prepaid tax or tax payable account as appropriate On May 1, 20x1 Entity D paid the first of two equal installments of P72,000 for real property taxes. Requirement: What is the entry to record the payment on May 1?
3. Identify the following transactions as either Capital Expenditure or Revenue Expenditure.i). Depreciation expense for financial year ended 2019 amounting to $25,000.ii). Buy vehicle for business use amounting to $45,000.iii). Pay salary and wages for November 2019 amounting to $4,200.iv). Buy File for office use amounting to $750.v). Acquire a building amounting to $100,000.vi). Repair office Window amounting to $700.