FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- 4. Mr. Ankit retired on April 30, 2020. He will be receiving gratuity of *5.5 lakh and leave encashment of *2.20 lakh. He will also be receiving employee and employer contribution to provident fund. If he opt for the reduced rate of tax. Explain whether he will be eligible for the exemption under Income Tax Act,arrow_forwardWhat is the amount of self-employment tax that would be paid by Andy for the year assuming he earned $128,100 while working as an employee of the University and another S20,000 from a sales business he owns? Select one: a. S1,190.40 b. S1,726.03 C. $535.63 d. $2,825.91 e. None of thesearrow_forwardExercise 19-14 (Algorithmic) (LO. 5) Zack, a sole proprietor, has earned income of $36,145 in 2022 (after the deduction for one-half of self-employment tax). What is the maximum contribution Zack may make to a defined contribution Keogh plan? 58,000 Xarrow_forward
- Use the 2021 FICA tax rates, shown, to answer the following question. If a taxpayer is not self-employed and earns $128,000, what are the taxpayer's FICA taxes? Employee's Rates Matching Rates Paid by the Employer Self-Employed Rates 7.65% on first $142,800 of 7.65% on first $142,800 paid 15.3% on first $142,800 of net income profits in wages 1.45% of income in excess of $142,800 1.45% of wages paid in excess of $142,800 2.9% of net profits in excess of $142,800 The taxpayer's FICA taxes are $ (Round to the nearest cent as needed.)arrow_forwardUse the 2016 FICA tax rates, shown below, to answer the following question. If a taxpayer is not self-employed and earns $137,000, what are the taxpayer's FICA taxes? Employee's Rates Matching Rates Paid by the Employer Self-Employed Rates 7.65% on first $118,500 of income 1.45% of income in excess of $118,500 7.65% on first $118,500 paid in wages 1.45% of wages paid in excess of $118,500 15.3% on first $118,500 of net profits 2.9% of net profits in excess of $118,500 FICA taxes are ?$arrow_forwardJongwe has total income of £115,315 for 2021/22. He made occupational pension contribution of £4,000 (gross). His personal allowance for 2021/22 will be: £12,570 £0 £6,912.50 4912.50arrow_forward
- A woman is in the 15% tax bucket and itemizes her deductions. How much will her tax bill be reduced if she makes a$200 tax deductible contribution to charity A. $30 B. $200 C. $0 D. $170arrow_forwardA woman is in the 15% tax bracket and itemizes her deductions. How much will her tax bill be reduced if she makes a $200 tax deduction contribution to charity? A. $30 B. $200 C. $ 0 D $ 170arrow_forwardGive typing answer with explanation and conclusionarrow_forward
- Which one of the following costs is most likely NOT fully deductible? Group of answer choices Jose, a local business owner, pays $30,000 in Self-Employment taxes. Sandra owns a mini golf course. She pays her employer portion of payroll taxes because of her employees, which totals to $12,000. Travis owns a CPA firm and pays his son Joe as an associate. Joe is a CPA and is paid the same salary as the other associates. X-Corp writes off a $12,000 business debt owed by Sam because he has not responded to their numerous requests for payment.arrow_forwardSee picture for details.arrow_forwardDetermine the self-employment tax for an individual who has $111,700 in wages, $4,000 in interest income, and $20,000 in self-employment income. The self employment tax is________?arrow_forward
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