PRINCIPLES OF TAXATION F/BUS...(LL)
23rd Edition
ISBN: 9781260433197
Author: Jones
Publisher: MCG
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Chapter 18, Problem 4AP
a.
To determine
Determine the after-tax cost of $4,300 interest payment, if C Products is a corporate taxpayer with a 21% marginal tax rate.
b.
To determine
Determine the after-tax cost of $4,300 interest payment, if C Products is a sole proprietorship with a 37% marginal tax rate.
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Mr. John Wick operates books stores and renders services as a professional broker. In2018, his gross sales amounted to P800,000. In addition to that, he received P300,000from his services as a broker. Assume that he failed to signify his intention to be taxed at8% income tax rate on gross sales in his initial Quarterly Income Tax Return, and heincurred the cost of sales and operating expenses amounting to P600,000 and P200,000,respectively. What is the income tax due to John Wick in his quarterly income tax?
May Yaman is engaged in a VAT-business and a non-VAT business. Her records show the following data, no tax included, for the taxable year:
Sales
From VAT business
P6,000,000
From non-VAT business
4,000,000
Purchases
For VAT business from VAT suppliers
3,000,000
For non-VAT business
2,000,000
Purchases from VAT suppliers of supplies used for VAT and non-VAT business
30,000
Expenses incurred for both VAT and non-VAT business (70% of these expenses were paid to VAT-registered enterprises)
100,000
The VAT payable is:
Group of answer choices
1) In the current year, Azure Company has $350,000 of net operating income before deducting any compensation or other payment to its sole owner, Sasha. In addition, Azure has interest on municipal bonds of $25,000. Sasha has significant income from other sources and is in the 37% marginal tax bracket. Based on this information, determine the income tax consequences to Azure Company and to Sasha during the year for each of the following independent situations.(Ignore the deduction for qualified business income and the 3.8% Medicare surtax on net investment income.)
Azure is a C corporation and pays no dividends or salary to Sasha.
Azure is a C corporation and distributes $75,000 of dividends to Sasha.
Azure is a C corporation and pays $75,000 of salary to Sasha.
Azure is a sole proprietorship, and Sasha withdraws $0.
Azure is a sole proprietorship, and Sasha withdraws $75,000
Chapter 18 Solutions
PRINCIPLES OF TAXATION F/BUS...(LL)
Ch. 18 - Prob. 1QPDCh. 18 - Prob. 2QPDCh. 18 - Prob. 3QPDCh. 18 - Prob. 4QPDCh. 18 - Prob. 5QPDCh. 18 - Prob. 6QPDCh. 18 - Prob. 7QPDCh. 18 - Prob. 8QPDCh. 18 - Prob. 9QPDCh. 18 - Prob. 10QPD
Ch. 18 - Prob. 11QPDCh. 18 - Prob. 12QPDCh. 18 - Prob. 13QPDCh. 18 - Prob. 14QPDCh. 18 - Prob. 1APCh. 18 - Prob. 2APCh. 18 - Prob. 3APCh. 18 - Prob. 4APCh. 18 - Prob. 5APCh. 18 - Prob. 6APCh. 18 - Prob. 7APCh. 18 - Prob. 8APCh. 18 - Prob. 9APCh. 18 - Prob. 10APCh. 18 - Prob. 11APCh. 18 - Prob. 12APCh. 18 - A revenue agent determined that Ms. Owen underpaid...Ch. 18 - Prob. 14APCh. 18 - Prob. 15APCh. 18 - Prob. 16APCh. 18 - Prob. 17APCh. 18 - Prob. 18APCh. 18 - Prob. 19APCh. 18 - Prob. 20APCh. 18 - Prob. 22APCh. 18 - Prob. 8IRPCh. 18 - Prob. 9IRPCh. 18 - Prob. 1RPCh. 18 - Prob. 2RPCh. 18 - Prob. 1TPCCh. 18 - Prob. 2TPC
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