During tax year 2021, Monsters, Inc. incurs the following expenses related to their annual employee-only holiday party: 1) Catering from a local restaurant of $20,000 2) Hiring a local band to play at the party for $5,000. How much of these expenses are deductible for Monsters, Inc. as a business expense?
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- LSG Company is a calendar year, cash basis taxpayer. On November 1, 2018, LSG paid $9,450 cash to the janitorial service firm that cleans LSG’s administrative offices and retail stores. How much of this expenditure can LSG deduct in 2018 assuming that the expenditure is a prepayment for 18 months of cleaning services from November 2018 through April 2020?A certain taxpayer paid the following bill from a VAT-registered supplier of office supplies. The office supplies were all used in operation during the period Selling Price Plus: Output Vat 400,000 48,000 Less: Withholding tax (1%) 4,000 444,000 Net Cash due What is the deductible supplies expense assuming the taxpayer is a VAT-taxpayer? 396,000 400,000 444,000 448,000Felipe's Mexican Restaurant incurred salaries expense of $70,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $23,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,000), life insurance (cost to the company, $400), and retirement benefits (cost to the company, 8% of salaries expense). Requirement 1. Journalize Felipe's expenses for employee benefits and for payroll taxes. Explanations are not required. Begin with the entry to accrue Felipe's employer payroll taxes. (Round all amounts to the nearest cent. Record debits first, then credits. Exclude explanations from journal entries.) Date ages Get more help - Accounte [99+ More info Dabit Gradit For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: Employer: OASDI: 6.2% on first $132,900…
- Felipe's Mexican Restaurant incurred salaries expense of $59,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $16,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,400), life insurance (cost to the company, $400), and retirement benefits (cost to the company, 5% of salaries expense). A (Click the icon to view payroll tax rate information.) More info Requirements For all payroll calculations, use the following tax rates and round amounts to the nearest cent: 1. Journalize Felipe's expenses for employee benefits and for payroll taxes. Explanations are not required. Employee: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. 2. What was Felipe's total expense for 2024 related to payroll? Employer: OASDI: 6.2% on first $132,900 earned per…Axel's Mexican Restaurant incurred salaries expense of $61,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $21,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,300), life insurance (cost to the company, $370), and retirement benefits (cost to the company, 8% of salaries expense). More info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. OASDI: 6.2% on first $132,900 earned per employee; Medicare: 1.45%, FUTA: 0.6% on first $7,000 earned per employee; SUTA: 5.4% on first $7,000 earned per employee. Requirements A 1. Journalize Axel's expenses for employee benefits and for payroll taxes. Explanations are not required. 2.…K Felipe's Mexican Restaurant incurred salaries expense of $70,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $23,000 is subject to unemployment tax. Also, the company provides the following benefits for employees: health insurance (cost to the company, $2,000), life insurance (cost to the company, $400), and retirement benefits (cost to the company. 8% of salaries expense). i (Click the icon to view payroll tax rate information.) Read the requirements. More info For all payroll calculations, use the following tax rates and round amounts to the nearest cent: Employee: Employer: OASDI: 6.2% on first $132,900 earned; Medicare: 1.45% up to $200,000, 2.35% on earnings above $200,000. OASDI: 6.2% on first $132,900 earned per employee; Medicare: 1.45%; FUTA: 0.6% on first $7,000 earned per employee; SUTA: 5.4% on first $7,000 earned per employee. Date Print Done Requirement 1. Journalize…
- In 2021, Archibald Corporation incurred the following expenses in connection with the product of its business: P100,000 worth of plane tickets and hotel bills of its employees who were sent to business seminars; P200,000 transportation allowances of its officers from home to office and vice versa as part of their employment contract; P80,000 transportation expenses of messengers from office to several clients; P20,000 special assessment. Determine the allowable expenses that could be deducted by Archibald Corporation from its gross income.K Ltd. paid an employee a tax-free travel allowance of $7, 700 based on 7,000 kilometres of out-of - town driving in 2023. What amount can K deduct for tax purposes? Please can you solve this based on the CRA thank you!In 2018, A Corporation allowed its Sales Manager to incur expenses subject to reimbursement, as follows: Electricity (Meralco) - 70% in the name of A P20,000 Corporation Water (Maynilad) - 70% in the name of A 2,000 Corporation Grocery (SM) 10,000 Gasoline of Company car used for business 12,000 trip Representation and Transportation - 4,000 business trip The amount of fringe benefit tax is (Note: Round off to the nearest peso)
- Atimonan Company received a bill for P27,440 from a VAT service provider. The payment for the service is subject to 2% creditable withholding tax. If Atimonan is a VAT taxpayer and a top withholding agent, what is the deductible expense? What respectively is the withholding tax and the amount of cash to be paid by Atimonan to the service provider?During the eight-week period following Paycheck Protection Program (PPP) loan funding, the taxpayer is a sole proprietor and his or her business spends $75,000 on payroll costs, making it eligible for up to $100,000 in PPP forgiveness. The extra $25,000 above payroll costs may be allocated across which of the following expenses paid or incurred during the same 8-week period?Felipe's Mexican Restaurant incurred salaries expense of $60,000 for 2024. The payroll expense includes employer FICA tax, in addition to state unemployment tax and federal unemployment tax. Of the total salaries, $19,000 is subject to unemployment tax. A provides the following benefits for employees: health insurance (cost to the company, $2,900), life insurance (cost to the company, $390), and retirement benefits (cost to the company, 8% of salaries expense). i (Click the icon to view payroll tax rate information.) Read the requirements. Requirement 1. Journalize Felipe's expenses for employee benefits and for payroll taxes. Explanations are not required. Begin with the entry to accrue Felipe's employer payroll taxes. (Round all amounts to the nearest cent. Record debits first, then credits. Exclude explanations from journal entries.) Date Accounts Debit Credit Now record the accrual of Felipe's employee benefit expenses. Date Accounts Debit C Credit Requirement 2. What was Felipe's…
