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24.
Which is TRUE?
S1: Representation expense of a seller of goods is subject to limitation of 5% of net sales.
S2: Interest expense is subject to tax arbitrage if a taxpayer has interest income.
S3: Donations to government are deductible in full.
Step by step
Solved in 2 steps
- I. Final Income taxation is characterized by: 1. Full taxes are withheld by the income payor at source. 2. Recipient receives the income net of tax 3. Payor is the one required by law to remit the tax to government 4. Recipient need not file an income tax return 5. Tax withheld constitutes full tax due and deemed final payments EXAMPLE: Mr. C is a depositor of W bank and earns an interest income of P8,000 in a 6-month time deposit on year 2020. This interest income is subject to 20% final tax or P1,600. Requirements: Discuss final income tax using the names and amounts given. For example, In final income taxation, Mr. receives the income of P6,400 net of tax.S1: Proof of deductions is mandatory. S2: Deductions are liberally construed in favor of the taxpayer. S3: All deductions are based on actual expenses incurred. Group of answer choices c. Only S3 is true d. All is false b. Only S2 is true a. Only S1 is trueThe definition of gross income in the tax law is: All items specifically listed as income in the tax law All cash payments received for goods provided and services performed All income from whatever source derived All income from whatever source derived unless the income is earned illegally
- LO.3, 4, 5 Using the legend provided below, classify each statement under 2019 tax law. a. A foreign tax credit is available. b. The deduction of charitable contributions is subject to percentage limitation(s). c. Excess charitable contributions can be carried forward for five years. d. On the contribution of inventory to charity, the full amount of any appreciation can be claimed as a deduction. e. Excess capital losses can be carried forward indefinitely. f. Excess capital losses cannot be carried back. g. A net short-term capital gain is subject to the same tax rate as ordinary income. h. The deduction for qualified business income may be available. i. A dividends received deduction is available. j. The like-kind exchange provisions of 1031 are available. k. A taxpayer with a fiscal year of May 1April 30 has a due date for filing a Federal income tax return of July 15. l. Estimated Federal income tax payments may be required.23. Which is TRUE? S1: All taxpayers engaged in trade are allowed to use either itemized or optional standard deduction. S2: Exempt corporations are required to report their income. S3: A registered barangay-micro business enterprise who is exempt from paying income tax is also exempt from filing income tax return. S4: A senior citizen who is engaged in trade or business is exempt from taxation. Group of answer choices a. S1 d. S4 b. S2 c. S31.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?
- 9. One of the following is not subject to income tax- a. Winnings in jueteng. b. Bribe given to a public official. c. Winnings in lotto amounting to P10,000. d. Wagering gains CS Scanned with CamScannerH6. 13 A claim for refund is a request for reimbursement of the overpayment of taxes paid in previous years. To be valid, a claim for refund must include which of the following features? Select one: a. The claim for refund can be made by telephone or in writing. b. The claim for refund must be signed only by the taxpayer c. The claim for refund must be filed within the set statute of limitations d. All of the above are correct Please explain also wrong options and explain with detailsMa3. e general rate reduction applies ONLY to ________. Question content area bottom Part 1 Choose the correct answer. A. income of CCPCs B. capital gains C. property income of Canadian corporations D. income of corporations that is NOT subject to other tax benefits
- 1. X borrowed money from Y worth 10,000 and owed 5,000 tax liabilities to BIR. Which of the two liabilities will most likely cause X’s imprisonment for reason of nonpayment? a. Loan from Y b. Tax due to BIR c. Both d. None of the above 2. As to scope; which is comprehensive and plenary? a. Taxation power b. Police power c. Eminent domain d. All of the above 3. I. LGUs exercise taxation power II.As to amount, tax has no limit. a. TT b. FF c. TF d. FTAnswer whether each statement is True or False 1.Amounts withdrawn from deposit accounts of a decedent subjected to the 6% final withholding tax shall be included in the gross estate for estate tax purposes. 2. Transfer taxes provide income to the government. 3. It is possible that a transfer may be inter vivos in form but mortis causa in substance. 4. A power of appointment is the right to designate the person or persons who shall succeed to the property of a prior decedent. 5. A special power of appointment authorizes the donee of the power to appoint only from among a designated class or group of persons other than himself. 6. The donee-decedent of a special power of appointment only holds the property in trust; hence, the property shall form part of the donee-decedent's gross estate. 7. The designation of beneficiary in a life insurance is irrevocable unless expressly stated as revocable. 8. An insolvent person is one whose liabilities exceed his assets. 9. Only the property…1. What self-employment tax rate is applied to earnings that exceed $142,800 in a year and also do NOT exceed the additional Medicare tax threshold? Answer: A. 15.3% B. 12.4% C. 2.9% D. 1.45% 2. What is the standard credit applied to the FUTA tax rate in non-credit reduction states? Answer: A. 0.6% B. 0.9% C. 5.4% D. 6% 3. An employer in a non-credit reduction state would pay FUTA taxes of _____ for an employee whose year-to-date earnings prior to the current period are $7,200 and who earns $1,100 during the current period. Answer: A. $0 B. $6.60 C. $43.20 D. $49.80