. Gordon accepts an offer of employment made by QP Pty Ltd to be their new associate director. On 1 April 2019, QP Pty Ltd made Gordon an interest free loan of $500,000 to last for 3 уears. Gordon used the loan money from his employer to pay out a previous loan on his home from XYZ Bank that was costing him 7% per annum. QP Pty Ltd is not entitled to claim any input tax credit for GST purposes. Required: Advise QP Pty Ltd of the Fringe Benefits Tax payable, if any, (rounded to the nearest dollar) for the FBT year ended 31 March 2020.
Q: Mr. Mani started his new job in Burlington, Ontario on 1st January 2021 with Mandy's Inc. and gets…
A: Mr. Mani's Annual salary package = $78000 Total employee withholdings taxes and employer's…
Q: Mianel, an employee of XYZ Corp. is receiving regular monthly compensation in the amount of…
A: Monthly Compensation = 100,000 Non taxable deductions: GSIS = 9,000 Philhealth = 687.50 HDMF =…
Q: The Net Income of Mr. Richard was £130,000 during the tax year 2019-2020. He travelled 10,000 miles…
A: Tax means the mandatory payment made by assesse to the government without expecting anything…
Q: Leonard is employed and received a gross salary of £3,452 per month during tax year 2021-22. He also…
A: For Class1 On income between £797 and £4,189 tax rate is 12% For Class2 rate of tax is £3.05 a week.…
Q: In 2020, what is the amount of self-employment tax that would be paid by Andy for the year assuming…
A: The self-employment tax is the tax that is paid by the freelance and sole proprietor on his net…
Q: Mr. Allen is a 65-year-old Jamaican tax resident. He is the director of a hotel, Allen’s Rest Well…
A:
Q: If Emily earns wages of $26,000 for 2020, calculate the total amount of the FICA tax that must be…
A: Payroll taxes The employer is required to pay a certain percentage to the government on the behalf…
Q: Beau earned $35,000 of net earnings from a tax preparation business that he runs during tax season.…
A: Total self-employment tax rate = Tax rate for social securirty + Tax rate for medicare=12.4% +…
Q: Mr. Allen is a 65-year-old Jamaican tax resident. He is the director of a hotel, Allen’s Rest Well…
A: Taxation: Taxation refers to the imposition of compulsory financial obligations by the government on…
Q: Victoria's 2021 tax return was due on April 15, 2022. but she did not file it until June 12, 2022.…
A: 1. Non Filing / Late Filing Penalty : 5 % per month ( or fraction there of ) on additional tax due.…
Q: 1. In the illustration on number 1, Ms. X likewise earned P1,000,000 from employment with XYZ…
A: As per our protocol we are supposed to answer one question. Since you have asked two questions under…
Q: In 2018, Ronnie Alonte received from his employer a promissory note with a face value of P 50,000…
A: Notes Receivable Notes receivable which are received in the form of services which are provided to…
Q: Gordon accepts an offer of employment made by QP Pty Ltd to be their new associate director. On 1…
A: An employer provides a loan fringe benefit if they lend their employee an interest-free or…
Q: Calculate Ava’s taxes payable on her bonus using her marginal tax rate.
A: The taxable income will be calculated by deducting the deductions from the total income. The Federal…
Q: ty was $1,500,000. Expenses was $650,000. Capital allowance for this property was $180,000. He…
A: Gross salary =$7,000,000 per year. monthly pension =$75,000
Q: Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2021.…
A: Answer:- FICA Tax definition: - FICA stands for the Federal Insurance Contribution Act. It is…
Q: Gomez maintains a law firm and registered as non-VAT taxpayer. For a particular client, the amount…
A: Here in this situation Mr. Gomez operates a law firm and registered the company as non VAT…
Q: Ana Rosa, president of the Apoka Company, has a bonus arrangement with the company under which she…
A: Bonus = net income x rate100 + rate Provision for income tax = ( net income - bonus ) x tax rate…
Q: Corporation, a cash basis taxpayer, received $10,000 from a customer in 2019. In that year, the…
A: Whenever the taxes you had already paid exceed your entire tax burden, the government reimburses you…
Q: 30. On July 1, 2021, Mr. Lancelot borrowed P10,000 at 6% interest from ABC Loan Company, Inc. for…
A: The revenues and expense are reported on the income statement when they are earned and incurred,…
Q: Ms. Anna Frozen operates an ice cream store while she offers bookkeeping services to her clients. In…
A: An individual who has an income source purely from self-employment and their turnover of gross sales…
Q: Samantha works for IBM and is entitled to receive a monthly salary of $5,000. Samantha enters into a…
A: Given, Monthly salary = $5,000 Paid for child-support agreement = $2,000 Deposited into Ex’s bank…
Q: Erin, who is a self-employed party consultant, made $60,000 in net income from her business in 2020.…
A: Self employment tax is defined as the tax imposed that the small business owner need to pay to the…
Q: Allan has a gross income of P400,000 in 2020. His employer deducted P5,000 SSS, P4,000 PHIC, P3,000…
A: Answer: The final tax due is calculated on the net income of the person. The deductions is allowed…
Q: Eva received $73,000 in compensation payments from JAZZ Corp. during 2019. Eva incurred $16,000 in…
A: Step 1:Eva is a self-employed contractor; Eva can file the return after receiving considerable…
Q: Mr. Albert lives in a company flat accommodation which is not job related. The cost of the…
A: The correct option is A. 4,000
Q: John Wick operates books stores and renders services as a professional broker. In 2018, his gross…
A: Given: Sales amounted = P800,000 Services as a broker received = P300,000 Tax = 8% Cost of sales =…
Q: In 2020, Mason, age 35 and single, earned wages of $75,000. Mason had no exclusions, and he had…
A: As per United State tax laws Itemized deduction are those deduction which can be claimed as…
Q: e that Eva is considered to be a self-employed contractor. What is her regular tax liability for the…
A:
Q: n, he receives a meal allowance of $6,000 per week. e) The company also pays his son's school fees…
A: Tax refers to the mandatory form of charge levied by the government over the income gained by an…
Q: Self-Employment tax =
A: The total self-employment tax is 15.3% of the net earnings and it has two parts. The first part is…
Q: Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2021.…
A: Federal insurance and contribution act enable US payroll tax to fund the social security…
Q: X, a minimum wage earner. In 2018, his salary and overtime pay totaled 200,000 and his hazard pay is…
A: In the context of the given question, we are required to compute the taxable income of X in 2018.…
Q: Mr. Allen is a 65-year-old Jamaican tax resident. He is the director of a hotel, Allen’s Rest Well…
A: Given, Mr. Allen is a 65-year-old Jamaican tax resident. a) Gross salary $7,000,000 per year. b) As…
Q: Faisal is self-employed, and for the tax year 2021-22 had a trading profit of E47,500. He has…
A: Lets discuss basics. As per HMRC rules, Sole trader needs to pay class 2 NI @ 3.05 per week for…
Q: Mr. Allen is a 65-year-old Jamaican tax resident. He is the director of a hotel, Allen’s Rest Well…
A: Mr. Allen is a 65-year-old Jamaican tax resident. He is the director of a hotel, Allen’s Rest Well…
Q: Mr. Ramos earns purely compensation income for the year 2021 with an annual basic salary of…
A: Non taxable income is equivalent to Government mandatory contribution amounting Php21900 which is…
Q: Mr. Allen is a 65-year-old Jamaican tax resident. He is the director of a hotel, Allen’s Rest Well…
A: Considering Jamaica tax rates citizens who are aged more than or equal to 65 years are given an…
Q: MOMO is an employee of BTS Corporation and earned $200,000 for the taxable year 2021. If for the…
A: MOMO's taxable income would be: $200,000 + $450,000 = $650,000 Her income tax due would be:…
Q: Joanne Plummer is self-employed in 2019. Her Schedule C net income is $36,600 for the year, and…
A: Self-employment income: Income earned by an individual by working for his/her interest with the…
Q: Venato Adams is employed to 'Bank of America’ at a salary of $400,000 per month. He receives his…
A: Allowance received by an employee from employer by any way is taxable in the hands of employees.…
Q: Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2020.…
A: FICA refers to Federal Insurance Contribution Act. As per this act, the employers as well as the…
Q: Juan’s marginal tax rate was 15% in 2019 and 35% in 2021. b. Juan’s marginal tax rate was 35% in…
A:
Q: e of the corporation. In December 2019, the corporation has decided to distribute $450,000 to Tim…
A: When a part of profit is distributed as income, it is called application of income. Hence, the…
Q: Eva received $73,000 in compensation payments from JAZZ Corp. during 2019. Eva incurred $16,000 in…
A: FICA tax: Federal government imposes taxes on the employee’s pay to provide benefits to retired, old…
Q: Mr. Asif, a Salaried Individual, has following information for the Tax Year 2020. His Annual Tax…
A: Computation of Income Tax for the year ending 2020 Particulars Amount (Rs) Income from Salary…
Q: Is RR allowed to avail himself of the eight percent (8%) income tax? How will RR’s tax liability be…
A: Tax liability is the liabilities which have to be computed as per the tax rates specified by the…
Q: Simon's employer is considering improving Simon's current remuneration package by offering him a…
A: The term Leave passage means travelling during a period of absence or vacation from duty or…
Q: Mary is self-employed for 2019. Mary estimates her required annual estimated tax payment for 2019 to…
A: Tax:- It is the amount which an individual pays on his or her taxable income as per the guideline…
Q: Company has an employee, Sue Nami, who has an estimated net income of $104,000 in 2022. Sue will be…
A: Income Tax: It is the charge levied on the income of the individual or company by the govt. as per…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- 2-Hamed was granted a loan of £40,000 by his employer on 1st April 2019 and interest is payable on the loan at 1% p.a. On 31st May 2019, Hamed repaid £5,000 and on 30th November 2019 he repaid a further £15,000. The remaining £20,000 was still outstanding on 5 April 2020. The official rate of interest is 2.5 % p.a. for the tax year 2019/20. What will be the taxable benefit on beneficial loans as per the average method of interest calculation? O a. £308 O b. £750 O c. £435 O d. None of the optionsIn 2018, Ronnie Alonte received from his employer a promissory note with a face value of P 50,000 for services rendered. The note will mature in 2019. However, it can be sold to a bank at a discount of 25%. The employer paid the promissory note in 2019. How much is the taxable income to be declared by Alonte on the promissory note in 2018 and 2019? 2018 2019a. P 50,000 P 50,000b. P 12,500 P 37,500c. P 37,500 P 12,500d. None P 50,000On January 2, 2019, Ivan got the franchise of PPP Inc. The franchise agreement provides a P500,000 initial franchise fee, payable P100,000 upon signing of the franchise contract and the balance in 4 annual installments starting December 31, 2019. At present value using 12% as discount rate, the four installments would approximate P199,650. The fees once paid are not refundable. The franchise may be cancelled subject to the provisions of the agreement. Should there be unpaid franchise fees attributed to the balance of the initial franchise fee, it would become due anddemandable upon cancellation. Further, the franchisor is entitled to a 5% continuing fee on gross sales payable monthly within the first ten days of the following month. The first year of operations yielded gross sales of P9milion.Assume the collectability of the note is assured. What is the earned franchise fee on Dec. 31, 2019?
- On July 1, 2019, Hart signed an agreement to operate as a franchisee of Ace Printers for an initial franchise fee of P12,000,000. The same date, Hart paid P4,000,000 and agreed to pay the balance in four equal annual payments of P2,000,000 beginning July 1,2019. The down payment is not refundable and no future services are required ofthe franchisor. Hart can borrow at 14% for a loan of this type. Present and future value factors are as follows:Present value of 1 at 14% for 4 periodsFuture amount of 1 at 14% for 4 periodsPresent value of an ordinary annuity of 1 at 14% for 4 periods Hart should record the acquisition cost of the franchise on July 1,2019 atB is a newly hired employee (November 2021) and has a monthly compensation package of a basic pay amounting to P20,000. How much will be deducted from his gross salary for his monthly SSS premium contribution? PhP2,630.00 PhP900.00 Php800.00 PhP2,430.00Chopin (Pty) Ltd ordinarily pays their employees a bonus in the form of a thirteenth cheque together with their December pay. This has created a constructive obligation on their part to recognise the liability. Chopin (Pty) Ltd only pays the bonus if the employee is still working for the company on 31 December of each year. Any employees joining the company during the year are paid a pro‐rata (proportional) amount of their bonus. On 1 January 2020 there were 32 employees in total earning an average monthly salary of R21 300 each. During the year, two new employees were taken on, one on 1 May 2020 at a salary of R15 700 per month, and the other on 1 November 2020 earning R10 500 per month. Two of the original employees resigned on 31 May 2020, their last day of employment being on 30 June 2020. What will the carrying value of the liability be on 30 June 2020? Show your calculations and prepare the journal entry to recognise the adjustment from the 1 January balance. No narration is…
- One July 1, 2020 Bob signed an agreement to operate as a franchisee of abc co for an initial franchise fee. A down payment was paid when the agreement was signed and the balance is payable in 4 equal annual payments of $35,000 beg July 1, 2021 The agreement provides that the down paymetn is not refundable and no future services are required of the franchisor Bob's credit rating indicates that he can borrow money at 14% for a loan of this type If Bob records the acquisition cost at $196,400 then how much was the down payment? I put $4,900 as the answer is that correct? Thank you BrendaOn January 1, 2021, Mrs. Erich entered into a franchise agreement with KK to market their products. The agreement provides for an initial fee of P15,500,000 payable as follows: P6,500,000 to be paid upon signing of the contract and the balance in five equal annual payments every end of the year starting December 31, 2021. Mrs. Erich signs a non-interest bearing notes for the balance. His credit rating indicates that he can borrow money at 15% interest for a loan of this type. The present value of an annuity of P1 at 15% for 5 periods is 3.352. The agreement further provides that the franchisee must pay a continuing franchise fee equal to 3% of the monthly gross sales. On August 31, the franchiser completed the initial services required in the contract at a cost of P7,290,120 and incurred indirect cost of P475,000. The franchisee commenced business operations on November 30, 2021. The gross sales reported to the franchisor were P1,800,000 for December, 2021. The first installment…On 1 July 2019, Cassblanka Ltd sells a construction vehicle to Tradon Ltd. The vehicle cost Cassblanka Ltd $19,500. Rather than selling the item for a cash price or a short-term claim for cash of $22,500, Cassblanka Ltd accepts a promissory note that requires Tradon Ltd to make five annual payments of $5,000 each, the first one to be made on 30 June 2020. The difference between the gross receipts and the current sales price represents interest revenue to be earned by Cassblanka Ltd over the period of the note. The implicit interest in the arrangement is 10 per cent. Required: Provide the necessary journal entries for Cassblanka Ltd for the year ended 30 June 2020 and 30 June 2021 to record the selling of construction vehicle.
- 1. On January 1, 2020, Sheffield signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $100,000. Of this amount, $20,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $20,000 each, beginning January 1, 2021. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. The present value at January 1, 2020, of the 4 annual payments discounted at 12% (the implicit rate for a loan of this type) is $60,750. The agreement also provides that 6% of the revenue from the franchise must be paid to the franchisor annually. Sheffield’s revenue from the franchise for 2020 was $840,000. Sheffield estimates the useful life of the franchise to be 10 years. (Hint: You may want to refer to Chapter 18 to determine the proper accounting treatment for the franchise fee and payments.) 2. Sheffield incurred $60,000 of experimental and development…JP received an amount ofP100,000.00 from RT, payable on orbefore November 15, 2021. It isstipulated in their contract that incase no payment is received onNovember 15, 2021, JP will act asthe courier of plants in the liveselling business of RT until his loanis paid. However, despite demandfrom RT when the obilgationbecomes due, JP refused & stillrefuses to act as courier in theplants live selling business of RT.Can RT demand from JP thefulfillment of his obligation to act ascourier in his plants live sellingbusiness? ExplainMina's Kitchen, Inc. franchise, entered into franchise agreement with Aling Mina, franchisee, onMarch 31, 2019. The total franchise fee is P500,000, of which P100,000 is payable upon signing andthe balance in four equal annual installments. The down-payment is refundable in the event thefranchiser fails to render services and none thus far had been rendered. When Mina's prepares itsfinancial statements on March 31, 2019, the franchise fee revenue to be reported is: