Johnson’s Hardware, a registered taxpayer, during the month of December purchased $100 000 of standard rate merchandise. During the same month cutlass costing $300 000 and taxable consulting services amounted to $90 000 was incurred respectively. The total sales inclusive of GCT for the month amounted to $1 500 000. All merchandise purchased was sold with a mark rate of 30%. Required: a. List four (4) obligations of Johnson’s hardware as a registered taxpayer. b. Differentiate between the following terminologies: i. tax avoidance and tax evasion ii. input and output tax iii. standard rated items and zero rated items. c. Compute the following for the month of December 2013 for Johnson’s hardware: i. total input tax ii. output tax iii. tax liability

11.A taxpayer is claiming tax preparation expense as a legal and professional fee.  They paid $430 at your office last year.  The forms breakdown by cost is as follows:  Form 1040- $100 Form Sch. C- $125 Form SE- $55 Form 8867- $75 Form 8863- $75  What is the correct amount that can be deducted on their Schedule C for the current year?  Choose one answer.   a. $280     b. $180     c. $355     d. $430

The optional standard deduction for a corporate taxpayer shall be: 40% of its total sales or revenue 40% of its gross income from operations only 40% of its total gross income including non-operating/other income subject to regular income tax 40% of its net taxable income

Jurisdiction X levies a flat 10 percent tax on individual income in excess of $35,000 per year. Individuals who earn $35,000 or less pay no income tax. Required: a. Mr. Hill earned $92,600 income this year. Compute Mr. Hill's income tax and determine average and marginal tax rate. b. Ms. Lui earned $43,700 income this year. Compute Ms. Lui's income tax and determine average and marginal tax rate. c. Ms. Archer earned $31,800 income this year and paid no income tax. Describe Ms. Archer's average and marginal tax rate. d. What type of rate structure does Jurisdiction X use for its individual income tax? Complete this question by entering your answers in the tabs below. Req A to C Req D a. Mr. Hill earned $92,600 income this year. Compute Mr. Hill's income tax and determine average and marginal tax rate. b. Ms. Lui earned $43,700 income this year. Compute Ms. Lui's income tax and determine average and marginal tax rate. c. Ms. Archer earned $31,800 income this year and paid no income tax.…

Required information Skip to question [The following information applies to the questions displayed below.] BCS Corporation is a calendar-year, accrual-method taxpayer. BCS was formed and started its business activities on January 1 of this year. It reported the following information for the year. Indicate BCS's deductible amount for this year in each of the following alternative scenarios. (Leave no answers blank. Enter zero if applicable.) d. In June of this year, a display of BCS’s product located in its showroom fell and injured a customer. The customer sued BCS for $500,000. The case is scheduled to go to trial next year. BCS was required to pay $500,000 to a court-appointed escrow fund this year. If BCS loses the case next year, the money from the escrow fund will be transferred to the customer suing BCS.

Required information [The following information applies to the questions displayed below.] Louis files as a single taxpayer. In April of this year he received a $900 refund of state income taxes that he paid last year. How much of the refund, if any, must Louis include in gross income under the following independent scenarios? Assume the standard deduction last year was $12,400. (Leave no answer blank. Enter zero if applicable.) c. Last year Louis claimed itemized deductions of $13,840. Louis's itemized deductions included state income taxes paid of $2,750 and no other state or local taxes. Refund to be included in gross income

Required information Problem 9-73 (LO 9-4) (Algo) [The following information applies to the questions displayed below) Rebecca is a calendar-year taxpayer who operates a business. She made the following business-related expenditures in December of this year. Indicate the amount of these payments that she may deduct this year under both the cash method of accounting and the accrual method of accounting. Note: Leave no answers blank. Enter zero if applicable. Problem 9-73 Part-c (Algo) c. $3,900 for property taxes payable on her factory. Cash method Accrual method Deductible Amount

For the purpose of computing the taxable income and the income tax, it shall include all business expenses directly incurred to produce the merchandise to bring them to their present location and use.  a. Cost of goods sold b. Operating expenses c. Both a and b d. Cost