Mr. Chico provided the following data.Salary for the year (P10,000 for 12 months, MWE-P10,000/mo.)Overtime payHazard payHoliday payCommission income as additional compensation income from the same companyProfessional income as dentistP 120,00050,000Prof. expenses1. Using the above facts, how much is Mr. Chico taxable net income is?2. Using the same facts, If he has no commission income, how much is Mr. Chico taxable net Income is?20,00020,00010,000250,00050,0003. Using the same facts, if he has no commission income & professional income, Mr. Chico taxable net income ishow much?

To calculate Mr. Chico's taxable net income, we need to add up all his income and then subtract any…

Answered: 1. Using the above facts, how much is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following correctly completes the sentence regarding the tax treatment of a housing allowance received by an ordained minister? The housing allowance is ______ income for federal income tax purposes and ___________ income for self-employment tax purposes. Included in; included in. Included in; excluded from. Excluded from; included in. Excluded from; excluded from.
3. Fess receives wages totaling $75,700 and has net earnings from self-employment amounting to $61,300. In determining her taxable self-employment income for the OASDI tax, how much of her net self-employment earnings must Fess count?
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Check Your Progress 2 Why is it important for taxpayers to recognize the exclusions from income? Answer area
Which of the following types of income are not considered self-employment income? Select one: a. Rental income from real estate and personal property leased with the real estate when the taxpayer is not a real estate dealer b. Capital gains c. Dividend income d. Interest income e. None of the these are considered self-employment income
Enzo is preparing a client's return. The taxpayer is claiming the Earned Income Credit (EIC), Child Tax Credit (CTC), Additional Child Tax Credit (ACTC), and the American Opportunity Tax Credit (AOTC). Which of the following best describes the actions Enzo must take to substantiate the taxpayer's eligibility for the credits?
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5) What is the difference of recurring income and non recurring income?(short answer)
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1. Using the above facts, how much is Mr. Chico taxable net income is? 2. Using the same facts, If he has no commission income, how much is Mr. Chico taxable net Income is? 3. Using the same facts, if he has no commission income & professional income, Mr. Chico taxable net income is how much?