Select the best answer.A cash-basis taxpayer deposited $10,000 in a savings account on October 15, 2021. Her account was credited for$10 of interest in 2021 and $100 of interest in 2022. She withdrew the entire $10,110 on December 31, 2022. Howmuch of this interest is taxable in 2022?Oquestion Q 6A. $0B. $10C. $100D. $110Submit Answers93% CompleteExit & Resum

In income tax, the cash basis of accounting is a method of recognizing income and expenses based on…

Answered: A cash-basis taxpayer deposited $10,000…

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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6. An employee, who had been with the company for 6 years, passed away on August 31, 2021. She had been earning a monthly salary of $5,900 and had regular CPP and El deductions taken off this salary on every cheque up to and including her August 31 payment. Calculate: a) Her maximum CPP contribution for the year. b) How much should be refunded to her estate, if any? cpp rate 5.45% cpp annual basic exemption $3,500 maximum insurable earnings $56,300 premium rate 1.58% Maximum annual employee premium $889.54
1. If John had deposited N$ 100 000 of his lump sum into a NamPost saving accountand earned interest on the savings account, the interest received by John would notbe taxable.a) Falseb) True2. Specifically included in John’s Gross Income should be any amount, excluding allvoluntary award, received or accrued in respect of services rendered or to berendered.a) Trueb) False 3. Desmond Xaweb 68-year old pensioner owns three tuck shops in Kunene Region. Hehas lived his whole life in Namibia and has never left the country. Desmond is alsothe owner of a house located a few kilometres outside Okahandja. After his death inJanuary this year, Desmond’s grandson, Dion, inherited the house. The house wasvalued at N$ 2 500 000 by an independent real estate evaluator. After facing cashflow problems, Dion decided to sell the house for N$ 2 000 000 during the sameyear. Will the proceeds from the sale of house by Dion be considered of incomenature?a) Trueb) False 4.24. Lisa Kutako, a property developer…
LO.2 Selma operates a contractor's supply store. She maintains her books using the cash method. At the end of 2023, her accountant computes her accrual basis income that is used on her tax return. For 2023, Selma had cash receipts of $1,400,000, which included $200,000 collected on accounts receivable from 2022 sales. It also included the proceeds of a $100,000 bank loan. At the end of 2023, she had $250,000 in accounts receivable from customers, all from 2023 sales. a. Compute Selma's accrual basis gross revenues for 2023. b. Selma paid cash for all of the purchases. The total amount paid for merchandise in 2023 was $1,300,000. At the end of 2022, she had merchandise on hand with a cost of $150,000. At the end of 2023, the cost of merchandise on hand was $300,000. Compute Selma's gross income from merchandise sales for 2023.
49. A taxpayer received the following items of income during the taxable year 2023: Interest income from BPI - Espana Branch from checking Interest income from BDO - Intramuros Branch from 62,000 Fom 38,500 account savings deposit Interest income from PNB - Quiapo Branch from foreign currency deposit account under the expanded currency deposit system Phone Calle Interest income from dollar deposit on Bank of New Jersey in the United States Interest income from promissory note of Mr. X, Philippines Paccy is Interest income from promissory note of Mr. X, United 612 States Yield from deposit substitute, Philippines Interest from Philippine government securities Interest income from long-term deposits, Philippines ub Interest income from long-term deposits, Egypt Royalties from books, Philippines Royalties from paintings, Philippines Royalties from musical compositions, Japan A. 300, 400 B. 312,900 C. 304,500 D. 362, 900 42,000 ebnuon 000.ce et nunu 000.20 130,000 58,400 Ismon es 62,000…
The Taxpayer spent the following amount of hours on his investments in 2019 57 hours on investment A 100 hours on investment B 150 hours on investment C 220 hours on investment D 20 hours on investment E 135 hours on investment F Which of these investments does he materially participate in? A) Investments B, C, D, and F B) None of them C) Investments B, C and D D)Investments C, D and F E) All of them
8. Youngstown Decking is an accrual basis taxpayer. On July 1, 2022, Youngstown paid $22,800 cash for a comprehensive liability and property insurance policy that covers a 24-month period. The deduction for insurance expense for 2022 is: a.$11,400. b.$22,800. c.$6,650. d.$5,700. e.$950.
1. Louisa is 72 years old. She purchased an annuity in January of 2021 that will pay her $1,500 per month for the rest of her life. Louisa paid $200,000 for the annuity. What is the expected value of Louisa’s annuity? a. $18,000 b. $21,900 c. $200,000 d. $262,800 e. Not able to be determined from this information
Ma4. Are these actions taxable? If yes, where would it go on tax return? (2020) Child Support Payment from Kevin Hamblin $12,000 Alimony Payment from Kevin Hamblin $16,000 Gift from her father to help with legal bills $8,500 Interest income on U.S. Treasury Bond $400 Interest income of Madison City Bond (municipal bond) $250 Interest income from First Bank of Madison $165 Life insurance proceeds on the death of her mother $45,000
n 2021 Betty loaned her son, Juan, $10,000 to help him buy a car. In 2023, before he repaid the $10,000, Betty to Juan that she was "tearing up" the $10,000 note as a graduation present. How should Juan treat the amount forgi O A. taxable income in year of forgiveness B. excludible gift in year of forgiveness OC. taxable income in year of loan O D. excludible gift in year of loan
1. Mr. Pangilinan has a portfolio of investments in various banks. He was diagnosed with cancer and had to pre- terminate his investments on February 13, 2021, to use for his medications. Compute for the final taxes on his investments and other income. a. P4 000 000 invested on Feb. 13, 2018, on a 5-year term b. P1 000 000 invested on July 1, 2020. c. Sold his condominium unit for P24 00 000. d. Sold his share of stocks in San Miguel Corp. for P500 000. e. Collected royalties for the book he wrote, P100 000.
What is the tax payable on July 31?

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A cash-basis taxpayer deposited $10,000 in a savings account on October 15, 2021. He $10 of interest in 2021 and $100 of interest in 2022. She withdrew the entire $10,110 or much of this interest is taxable in 2022? O A. $0 OB. $10 C. $100 D. $110