In 2018, a domestic corporation paid for the monthly rental of a residential house of its branch manager, Mr. Juan dela Cruz, amounting to P156,000. Assume there is no transfer of ownership, what is the total amount of deductible expense by the employer from its gross income? a. Answer not given b. P120,000 c. P198,000 d. P156,000 e. P42,000
Q: 2021, Mill Corp. incurred a 100,000 net loss from disposal of a business segment. Also, on June 30,…
A: Solution: Loss from disposal of a business segment will be full included in the net income or loss…
Q: Company A is preparing its financial statements as at 31 December 20X3. On 31 December 20X3, Company…
A: DTL refers to the Deferred tax liability which is reported on the balance sheet of company and it…
Q: Company Z has a deposit with ABC Bank. It obtained a loan from ASAP Financing Corp. in connection…
A: Here discuss about the details of the allowable deduction from the interest expenses which are…
Q: Bellago Ltd made an accounting profit before tax of $75,000 for the year ended 30 June 2020.The…
A: Solution: Calculation of the current tax liability for the year ended 30 June 2020: Bellago Ltd…
Q: BDO Company reported the following on December 31, 2015: Income before tax for accounting purposes…
A: The deferred tax asset is an asset for the company that is overpaid due to the difference in book…
Q: HOME Ltd. is a Canadian-controlled private corporation operating a small land-development business.…
A: HOME Ltd.'s 1. Profit before income taxes = $245000 This profit are acquired as follows : Income…
Q: Bluedragon is engaged in the following business activities for the year 2021: buying and selling of…
A: Relevant provision:- Persons who are not VAT-registered, who sell goods, properties or services and…
Q: Hemant Ltd, carries on a manufacturing business and had a number of transactions for the current tax…
A: Ordinary income is that income that usually arises in the normal course of business and it does not…
Q: On January 1, 2021, Bard Ltd. has a Class 8 (20% rate) UCC balance of $32,400. The Class 8 property…
A: When a capital asset is purchased for the purpose of utilization in business, the entire cost price…
Q: Tala Isabel is the sole owner and operator of Star Service Company. As of the end of its accounting…
A: Since there are multiple questions, we will answer only first question. If you want remaining…
Q: Export-Import Corporation paid the amount of P13,000.00 to Hernando’s Hideaway Resort Corporation…
A: To promote employee motivation or job satisfaction, some employers gives additional benefits to…
Q: Nello Company owed $23,400 overdue rent to its landlord, Bonview Inc. Because Nello is a desirable…
A: Rent was settled at 15000 instead of 23,400, there is a difference of 8400. Income should be…
Q: Provision of doubtful debts of $4,200 for a detective agency.
A: Provision of doubtful debts of $4,200 for a detective agency - It is considered to be a non…
Q: XYZ’s financial income is P1,800,000 before provision of income tax. The following differences have…
A: Taxable income = financial income before tax + Excess of warranty expense + Premiums paid on life…
Q: 1. A VAT-registered business makes a sale of P33,600, inclusive of VAT. The amount of sale that is…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: In the taxable year 2020, the following data pertain to a corporate business organization: De…
A: In taxable year 2020, Date pertains to a corporate business organization are : 1. De minimis…
Q: In 2018, A Corporation allowed its Sales Manager to incur expenses subject to reimbursement, as…
A: Some of the most common examples of fringe benefits are health insurance, workers' compensation,…
Q: Compute for the VAT payable. 1) On January 30, 2021, XYZ Corporation, a non-VAT registered company,…
A: Guideline: “Since you have asked multiple question, we will solve the first question for you. If…
Q: 1. Andrew received a total sum of P42,000 from his employer consisting of the following: P5,000…
A: Reimbursement of expenses is not subject to taxation. Payment towards the purchase of computer set…
Q: Activity: MNO is a sole proprietorship owned and managed by Mario N. Ortiz. amounted to P690,000.00…
A: Sole proprietorship : Sales : P690,000 Cost of sales : P310,500 Salary : Monthly salary : P45,000…
Q: During the year, JK Corporation has gross sales of P20,000,000 and operating expenses of P2,000,000,…
A: "Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: The employer paid the P30,000 monthly rental of the residential house used by M, the Manager of the…
A: 32% of gross up monetary value of the fringe benefit is the rate of Tax. GMV= MV+ FBT so GMV= MV/68%…
Q: Bernabe reports the following business transactions: Gross sales Sales discounts Cost of sales…
A:
Q: Donner Company began its operations in September of the current year. During September, the company…
A: Solution:- a)Is Donner Company liable for FUTA tax this year as follows:- The Federal Unemployment…
Q: Sure Ako Corporation reported pretax income of P4,500,000 for the year ended December 31, 2022. The…
A: Taxable income can be computed as per the following Pretax Income…
Q: March 1, 2019, Tina Corporation reported the following business income and expenses: Sales…
A: The net income is calculated as difference between total revenue and total expenses incurred during…
Q: soru At the end of 2019, The Business with 20% Corporate tax rate has Expenses: TL3.150.000 and…
A: The question is based on the concept of Financial Accounting.
Q: How much is the total income tax expense of Ana for the year? *
A: NOTE : As per BARTLEBY guidelines, when multiple independent questions are given, then first…
Q: On June 30, 2021, Line Company incurred a P100,000 net loss from disposal of a business segment.…
A: Loss from disposal of business segment = P 100000 Property taxes paid = 40000
Q: In 2021 XY corporation is subject to MCIT has the following records Sales: net of discounts and…
A: Profit from business operation = Net sales - cost of sales = P9,500,000 - P5,000,000 = P4,500,000…
Q: K had income from continuing operations of P800,000 (after taxes) in 2021. In addition, the…
A: GIVEN ÷ income from continuing operations (after taxes) = P800000 loss on inventory = P200,000 loss…
Q: Z Corporation paid P 136, 000 cash fringe benefit for the year 2019 representing 80 % of the car…
A: Fringe benefit refers to those extra or additional benefits provided to employees from their…
Q: TPW, a calendar year taxpayer, sold land with a $535,000 tax basis for $750,000 in February. The…
A: Rate of Profit=Gain realizedContract Price×100
Q: Fantasy Sdn Bhd incurred motor vehicle expenses of RM20,000 in the year ended 30 September 2019. It…
A: The monetary payment that is required to be made to the tax authority is defined as tax. Any…
Q: In 2018, Ryan Management collected rent revenue for 2019 tenant occupancy. For financial reporting,…
A: Deferred tax asset: Deferred tax asset is the item reported on the balance sheet which is a result…
Q: A VAT registered person is engages in both VAT and VAT exempt During the year total sales amounted…
A: VAT credit allowed in the proportion of the VAT Sales.
Q: Interest Expense 250,000.00 Interest Income form 5/6 30,000.00 Interest Income form Bank Deposits…
A: Deductible Interest expense : Interest expense is the charge for the funds provided to the…
Q: * Interest on bank deposits, P4,500; * Capital gain on sale of land, P138,000; * Fines and penalties…
A: Taxable Income Calculation of taxable income which can be determined by the net income after…
Q: gross income in 2020 using the installment method
A: Gain on sale of parking lot = Salve value - Acquisition price Sale value P3,500,000 Acquisition…
Q: Goose Corporation, a C corporation, incurs a net capital loss of $23,900 for 2021. It also has…
A: As per IRS There should be capital gains to set of capital losses
Q: If the beginning balance in Swan, Inc.’s OAA is $6,700 and the following transactions occur, what is…
A: Ending OAA balance = Beginning balance + Tax exempt interest income + life insurance proceeds - Life…
Q: Accounting As part of its employee benefits plan, Omega Corporation acquired a piece of residential…
A: Monetary value of fringe benefit = 60% x (P2000000 + P4000000) = P3600000 Since fringe benefit tax…
Q: A company had pretax financial income of $796,000 in 2021. During 2021, the following items cause…
A: Taxable income = Financial Income + Expenses disallowed under tax - Income not taxable in current…
Q: FGH Corporation had the following in 2021: Sales P 3.4M; Cost of sales P 1.2M; Admin expense P 0.3M;…
A: Let's understand some basics Tax is a compulsory contribution to state revenue, levied by the…
Q: The following are the some of the income payments of Treble Company, a domestic corporation, during…
A: Form 1601 FQ which was deal with Quarterly Remittance Return of final income taxes withheld which…
Q: A corporation sold a piece of equipment during the tax year for $85,200. The accounting records…
A: The asset was purchased earlier for $190,000 and accumulated depreciation thereon is $150,000. Now,…
Q: 20. Which of the following is subject to tax? a. P6,000 representing his unused vacation ieave…
A: Travelling expenses reimbursement is not subject to tax.
In 2018, a domestic corporation paid for the monthly rental of a residential house of its branch manager, Mr. Juan dela Cruz, amounting to P156,000. Assume there is no transfer of ownership, what is the total amount of deductible expense by the employer from its gross income?
a.
Answer not given
b.
P120,000
c.
P198,000
d.
P156,000
e.
P42,000
Step by step
Solved in 2 steps with 1 images
- On 01.10.20X1, TK transfers the annual rent of EUR 7,000 for the business and office space for one year in advance. Which of the following statements regarding business transactions in 20X1 is/are correct? O The annual rent reduces the profit in 20X1 by EUR 7,000. O Another liability must be recognized. O The payout is EUR 7,000 and the expense is EUR 1,750. O An anticipatory deferred item must be formed.FGH Corporation had the following in 2021: Sales P 3.4M; Cost of sales P 1.2M; Admin expense P 0.3M; Selling expenses P .5M; other taxable income from operations P .1M. What is deductible expense if the company uses OSD?* a. 920,000 b. 1,360,000 c. 880,000 d. 800,000 Using the problem above, what is the income tax payable?* a. 330,000 b. 375,000 c. 575,000 d. 525,000Rental income of R70 000 is received in advance. Calculate the tax base for income received in advance for the year ended 29 February 2016. Accept that SARS will tax the rental income when the rental premises is made available to the lessee. The tax base is: a. R70 000 b. R19 600 c. R0 d. R7 000
- 20. Which of the following is subject to tax? P6,000 representing his unused vacation ieave credits of ninë working days; b. Traveling expenses of P15,000 received by an employee who was sent on a business trip to Davao City; C. Representation expenses of P5,000 a month which are not subject to liquidation; d. Tips received by waitresses which are remitted to their employer. а. С. CS Scanned with CamScannerExport-Import Corporation paid the amount of P13,000.00 to Hernando’s Hideaway Resort Corporation for the vacation expenses of Mr. Leandro Lopez, its warehouse manager, in April 2020. The journal entry to record the fringe benefit expense and fringe benefit tax expense is: a. Debits: Fringe benefit expense, P13,000.00; Fringe benefit tax expense, P7,000.00. Credits: Cash, P13,000.00; Fringe benefit tax payable, P7,000.00. b. Debits: Fringe benefit expense, P20,000.00; Fringe benefit tax expense, P7,000.00. Credits: Cash, P20,000.00; Fringe benefit tax payable, P7,000.00. c. Debits: Fringe benefit expense, P13,000.00; Fringe benefit tax expense, P7,000.00. Credits: Fringe benefit expense payable, P13,000.00; Fringe benefit tax payable, P7,000.00. d. Debits: Fringe benefit expense, P13,000.00; Fringe benefit tax expense, P7,000.00. Credit: Cash, P20,000.00.FGH Corporation had the following in 2021: Sales P 3.4M; Cost of sales P 1.2M; Admin expense P 0.3M; Selling expenses P .5M; other taxable income from operations P .1M. 1. What is deductible expense if the company uses OSD? 2. Using the problem above, what is the income tax payable?
- A derived its income from its self-operated talpakan business. The details of his business for 2021 are as follows: Gross Receipts - P100,000.00 Operating Expenses - P50,000.00 Income taxes withheld in general - P10,000.00 Question: Assuming that the tax rate is 25%, what is the income tax payable of A? Group of answer choices P2,500.00 P12,500.00 P25,000.00 P15,000.00Ana, a self-employed resident citizen provided the following data for 2018 taxable year:Sales P2,800,000Cost of sales 1,125,000Business expenses 650,000Interest income from peso bank deposit 80,000Interest income from bankdeposit under FCDS 120,000Gain on sale of land in the Philippines held ascapital asset with cost P1.5Mwhen zonal is P1.2M 500,000 Using the same date except that her gross sales for the year was P3.8M, how much is her total income tax expense assuming she opted to be taxed at 8% income tax rate? * P351,500 P321,500 P342,500 P652,000A derived its income from its self-operated talpakan business. The details of his business for 2021 are as follows: Gross Receipts - P100,000.00 Operating Expenses - P50,000.00 Income taxes withheld in general - P10,000.00 Question: What is A's taxable income? Group of answer choices P40,000.00 P50,000.00 P90,000.00 P100,000.00
- Ana, a self-employed resident citizen provided the following data for 2018 taxable year:Sales P2,800,000Cost of sales 1,125,000Business expenses 650,000Interest income from peso bank deposit 80,000Interest income from bankdeposit under FCDS 120,000Gain on sale of land in the Philippines held ascapital asset with cost P1.5Mwhen zonal is P1.2M 500,000 How much is the total income tax expense of Ana for the year? * P342,500 P321,500 P358,000 P351,500 How much is the total income tax of Ana assuming she opted to be taxed at 8%? * P321,500 P358,000 P342,500 P351,500 Assuming Ana is a VAT-registered taxpayer, how much is her total income tax expense assuming she opted to be taxed at 8% income tax rate? * P342,500 P351,500 P321,500 P358,000 Using the same date except that her gross sales for the year was P3.8M, how much is her total income tax expense assuming she opted to be taxed at 8% income tax rate? * P351,500 P321,500 P342,500 P652,000If a property transaction is scheduled to close on May 14. The purchase agreement states that the seller will be responsible for all taxes "through the date of closing, calculate the individual tax responsibility for the buyer if the total tax owed at the end of the year is $5,000. For this problem, assume that we are dealing with a 365-day calendar year. Ⓒ$0.00 $5,000,00 $1,835.61 O $3,164,38Compute for the VAT payable. 1) On January 30, 2021, XYZ Corporation, a non-VAT registered company, purchased from ABC Corporation, a VAT registered company, goods and paid a total amount P156,800, inclusive of VAT. on February 1, 2021, XYZ Corporation became liable to VAT. The goods were sold on February 28, 2021 for P280,000, VAT inclusive. Compute for the VAT payable. a. P30,000 b. P13,200 c. P27,200 d. P16,800 2. On January 2020, DEF Corporation is a VAT registered manufacturer of refined sugar, purchased in cash from STU Corporation, also a VAT registered company, sugar cane amounting to P80,000. The refined sugar produced were sold on January 2020 on credit for P150,000, VAT exclusive. Compute for the VAT payable. a. P18,000 b. P8,400 c. P14,800 d. P9,600 3. Bible Community of the Philippines, Inc. (BCPI)is registered with the Securities and Exchange Commission as a nonstock, not-for-profit corporation with the primary purpose of…