If 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 ofclosing, 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 dealingwith a 365-day calendar year.Ⓒ$0.00$5,000,00$1,835.61O $3,164,38

Variables in the question:Transaction closing date=May 14Beginning date of year=January 1Total tax…

Answered: if a property transaction is scheduled…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 21CE

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On January 1, 2019, Kunto, a cash basis taxpayer, pays 46,228 for a 24-month certificate. The certificate is priced to yield 4% (the effective interest rate) with interest compounded annually. No interest is paid until maturity, when Kunto receives 50,000. In your computations: a. Compute Kuntos gross income from the certificate for 2019. b. Compute Kuntos gross income from the certificate for 2020. Round any amounts to the nearest dollar.
How do the all events and economic performance requirements apply to the following transactions by an accrual basis taxpayer? a. The company guarantees its products for six months. At the end of 2019, customers had made valid claims for 600,000 that were not paid until 2020. Also, the company estimates that another 400,000 in claims from 2019 sales will be filed and paid in 2020. b. The accrual basis taxpayer reported 200,000 in corporate taxable income for 2019. The state income tax rate was 6%. The corporation paid 7,000 in estimated state income taxes in 2019 and paid 2,000 on 2018 state income taxes when it filed its 2018 state income tax return in March 2019. The company filed its 2019 state income tax return in March 2020 and paid the remaining 5,000 of its 2019 state income tax liability. c. An employee was involved in an accident while making a sales call. The company paid the injured victim 15,000 in 2019 and agreed to pay the victim 15,000 a year for the next nine years.
Rental 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
Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. Queno Company had FUTA taxable wages of $510,900 during the year. Determine its: (Round your answers to two decimal places.) a. gross FUTA tax $fill in the blank 1.b. FUTA tax credits (assuming no penalties) $fill in the blank 2.c. net FUTA tax $fill in the blank 3.
Please refer to Philippine Taxation in answering the following. Ms. Lily leases two doors of her three-storey commercial building to M&M on January 1 of the current taxable year. The lessee, as agreed, shall make the following payments: ● ● ● Monthly rental of P 30,000 Security Deposits of P 60,000 for two months Real Estate tax P 3,000 Annual premium for fire insurance P 7,000 Required: Determine the amount of gross rent income if: 1) Advance rent with restriction 2) Advance rent without restriction
A customer makes a taxable purchase of 44,000. Assuming the applicable sales tax rate is 8.75%, how much will the customer owe? Please round your answer to the nearest whole dollar. Do not include dollar signs. O 47,454 O 44,000 48,750 none of the above
Assume that Shoreline Hotel Inc., (SHI) decides to make the following entry on December 31, 2018. Current tax rate is 40%. DR Current income tax expense $634,800 CR Income tax payable $634,800 This would imply that Select one: a. the taxable income for 2018 was different than the accounting income. b. the income tax expense reported by SHI on its income statement would be $750,000. c. the taxable income for 2018 was determined to be $1,587,000. d. All of the above. e. None of the above.
Ben Fernandez a VAT-registered taxpayer had the following data for each of the months indicated of its taxable year: Data for the month of: VAT not included: July August September P 1,437,500 P2,500,000 P2,312,500 1,875,000 There was an excess input tax of P25,000 at the end of June. . How much VAT is due in Sales.. Purchases.. 750,000 2,000,000 July, August, and for the quarter?
Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. Niemann Company has a SUTA tax rate of 7.1%. The taxable payroll for the year for FUTA and SUTA is $82,600. Round your answers to two decimal places. a. The amount of FUTA tax for the year is $fill in the blank 1. b. The amount of SUTA tax for the year is $fill in the blank 2.
Assume the following: Single filing status. • Total Income of $100,000 . . . Adjustments of $2,000 Deductions of $12,950 • Tax Payments of $3,000 • Tax Credit of $4,000 How much do you still owe in taxes? Hint: calculate your Taxable Income. Then calculate your Total Taxes Due. Tax Rate 10% 12% 22% 24% 32% 35% 37% O $13,400 Ⓒ$7,018.50 $13,138.50 $10,400 2023 Federal Income Tax Brackets Single Up to $11,000 $11,001 to $44,725 $44,726 to $95,375 $95,376 to $182,100 $182,101 to $231,250 $231,251 to $578,125 Over $578,126 Married Filing Jointly Head of Household Up to $15,700 $15,701 to $59,850 $59,851 to $95,350 $95,351 to $182,100 $182,101 to $231,250 $231,251 to $578,100 Over $578,101 Up to $22,000 $22,001 to $89,450 $89,451 to $190,750 $190,751 to $364,200 $364,201 to $462,500 $462,501 to $693,750 Over $693,751
16. Umasa Company reported rental revenue of P2,210,000 in the cash basis income tax return for the year ended November 30, 2020. Rent receivable – Nov. 30, 2020 is P1,060,000; Rent receivable – Nov. 30, 2019 is P800,000; and Uncollectible rent written off during the fiscal year is P30,000. Under accrual basis, what amount should be reported as rent revenue? a. P1,920,000 b. P2,240,000 c. P2,500,000 d. P1,980,000
Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. Niemann Company has a SUTA tax rate of 7.1%. The taxable payroll for the year for FUTA and SUTA is $82,600. Round your answers to two decimal places. a. The amount of FUTA tax for the year is $ b. The amount of SUTA tax for the year is $

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