Gains and losses derived from sale or exchange of all capital assets are subject to capital gains tax of 6% based on selling price or fair market value, whichever is higher. TRUE OR FALSE?
Q: Compute the ordinary gain and the net capital gain subject to regular income tax. a. P480,000; PO b.…
A: Capital gains or ordinary gains can be defined as the gain that arises from the sale of an asset or…
Q: Eight independent situations are described below. Each involves future deductible amounts and/or…
A: Temporary difference refers to the difference between the carrying amount and tax base of an asset…
Q: If a corporation has $85,000 in taxable income, what is its taxliability? ($17,150)
A: A taxable income of $85,000 falls under the tax slab of $75,000 to $100,000 with a tax of $13,750…
Q: During the year 20x4, the Altomonte company presented a financial income before contributions of $…
A: Income tax payable = Taxable income × tax rate
Q: ass corporation as defined) with a 31 March 2022 year of assessment. Calculate the tax inv(loss) for…
A: Capital Gains/ Losses: When a company or individual sold or disposed off the capital assets more or…
Q: ounting profit before tax of Lindfield Ltd for the year as $150,000, including the following items…
A: Journal entries are those entries that include daily transactions or events and are stated in the…
Q: On November 1, 2018, Berry Corporation declared equipment as property dividend payable on February…
A: Before distribution of dividend in non cash form , asset should be brought to fair value through…
Q: Compute for the tax due (A,B,C) for the below taxable income based on the Income Tax Tables:…
A: calculation of income tax due are as follows
Q: The tax due on the property is extracted from during Total annual revenue minus maintenance expenses…
A: Total annual revenue minus maintenance expenses Net taxable revenue minus expenses annual revenue…
Q: In its first year, Firm KZ recognized $427,300 ordinary business income and a $13,590 loss on the…
A: Deferred tax assets are represented on the asset side of the balance sheet. It reduces the tax…
Q: A, resident citizen, had the following data for 2018: Ordinary Taxable Income Gain from sale of…
A: The financial position of the company can be arrived from the income statement prepared by the…
Q: Lefty completes the following capital asset transactions. By how much does Lefty’s AGI increase as a…
A: Capital assets can be defined as any type of property held by an individual or an organization, that…
Q: A VAT-registered business makes a sale of P10,000, inclusive of VAT. The VAT on the sale can be…
A: VAT: VAT stands for Value Added Tax. It is a tax a customer is liable to pay on the goods or…
Q: USCo incurred $100,000 in interest expense for the current year. The tax book value of USCo’s assets…
A: Interest to be apportioned to foreign-source income = Interest Expense x % of Foreign source income
Q: Which of the following is not true about capital assets?
A: Capital Assets:- Capital assets are both movable and immovable properties, purchased by the company…
Q: Income tax is levied on all of the following taxable items except: O Wages O Interest and dividends…
A: Income tax is levied on Wages, Interest and dividends from moeny invested and Capital gains from…
Q: Parker Company identifies depreciation as the only difference for future taxable amounts. In Year 1,…
A: The deferred tax asset or liability is created out of timing difference. There may be some items…
Q: Cost-basis information for all sales transactions. Cost-basis information for all covered security…
A: Form 1099-B Proceeds from broker and barter Exchange. The information that is included in Forms…
Q: base. The tax rate is 30 per cent. What is the goodwill arising on the purchase of Lamina Co? *
A: Goodwill is the amount which occurs when the purchasing company pays more than the company from whom…
Q: Jin Company’s income tax return showed taxable income of P4,000,000 on which a tax liability of…
A: Taxable Income: P4,000,000 Accelerated Depreciation: P500,000 Financial Depreciation: P400,000…
Q: After tax cost of interest deals with the fact that interest is deductible for tax purposes.…
A: Interest expenses are the expenses which are related to borrowings raised by the company. The…
Q: Value-added tax shown in the deed of sale? Output value-added tax on May 5, 2018 col- lection?
A: VAT is the value added tax. It is the tax which is charged on the products or the services, it is a…
Q: Choose the correct. How does the amortization of tax-deductible goodwill affect the computation of a…
A: Statement a is not correct, amortization of goodwill is deductible even if the 80 percent share is…
Q: uring the 20x4 year, the Altomonte company presented a financial income before contributions of $…
A: Taxable Income refers to the amount of income or revenue earned by an entity or an individual in a…
Q: a.How much interest expense can CL deduct? b.How is the interest expense reported on CL’s Schedule…
A: Hi student Since there are multiple subparts, we will answer only first three sub parts. Given…
Q: The following information has been obtained for Tamarisk Corporation. 1. Prior to 2020, taxable…
A: The bottom income statement starts with income before tax and it is adjusted by some additional…
Q: Sunshine Company has book income of $250,000. It also has tax depreciation in excess of book…
A: Depreciation are different in books of accounts and in income tax act. While calculating book profit…
Q: Beckett Corporation has nexus with States A and B. Apportionable income for the year totals…
A: Taxable income is defined as income on which the government imposes the tax and it involves all the…
Q: c. His $454,000 of taxable income includes $47,000 of long-term capital gain that is taxed at…
A: Solution:- Given, Henrich is a single tax payer Taxable Income = $454,000 His taxable income…
Q: If the property before tax cashflow (PBTCF) in a given year is $125,000, total debt service is…
A: The Equity after tax cash flow of the investor is that income after deducting all expenses and tax.
Q: 1. Prior to 2020, taxable income and pretax financial income were identical. 2. Pretax financial…
A: Pretax financial income = $1,359,000 Equipment Purchased = $1,260,000 Life = 5 years Depreciation on…
Q: The following facts relate to Concord Corporation. 1. Deferred tax liability, January 1, 2020,…
A: Solution a: Computation of Required balance and recognition of Deferred tax liability and…
Q: property at P 20,000,000. If Nicanor utilized P 8,000,000 of the proceeds of the sale in acquiring a…
A: Nicanor sold his rest house in Pangasinan for P 80,00,000. Now sale of property will attract a…
Q: Champ received a $27,600 distribution from NeatCo, a U.S. C corporation. NeatCo’s earnings and…
A: Taxable income is the amount of income that is used to calculate an individual's or a company's…
Q: Umasa Corporation reported the following information for the current year: Pretax financial income…
A: Taxable income = Pretax financial income - exempt income + rent received in advance - depreciation =…
Q: Corporation’s Retained Earnings at December 31, 2021 amounted to P2,000,000. On that date, the…
A: The retained earnings are decreased with declaration of dividend to shareholders. The dividend can…
Q: The amount of net deferred tax asset/(liability) on January 1, 20x8 is The amount of net deferred…
A: Step 1 Deferred taxes are the tax which is arises due to differences in between the accounting…
Q: On the basis of the data provided at Question 6, how much (in $) is the capital gain tax? O a. $…
A: A. Investment definition is an asset acquired or invested in to build wealth. A part of income is…
Q: CL LLC is a manufacturing business and reported taxable income of $40,000,000 before interest…
A: The question is based on the concept of buisness accounting.
Q: of which of the following items? Choose all that apply. A. real estate B. income C. stocks
A: A capital gain is an increase in the value of a capital asset realised when it is sold. Capital…
Q: What amount of the capital loss may Hector deduct in the current year in the following situations?…
A: A tax liability that is of the current period but yet had not been paid by the organization or…
Q: Paris Corporation holds a $100,000 unrealized net capital gain and a capital loss carryforward that…
A: A net capital loss is carried forward until the whole amount is exhausted.
Q: Amount in excess of P490,000.00 taxable income is to be multiplied to_______to compute for the…
A: Graduated tax refers to the income tax which adjusts in respect to the amount subject to taxation…
Q: At 30 June 20X3, the carrying amount of an asset is $100 000 and its tax base is $80 000. The tax…
A: Deferred tax asset = (Carrying amount of an asset - tax base ) x tax rate
Q: P8.000,000 for the current year. The taxable income was P7,000,000 for the current year. The…
A: Tax expenses for a particular year is reported as : CURRENT TAX DEFERRED TAX
Q: How is goodwill amortized? Multiple Choice It is not amortized for reporting purposes or for tax…
A: Goodwill: Goodwill is an intangible asset linked with the acquisition of one business by another.…
Gains and losses derived from sale or exchange of all capital assets are subject to
TRUE OR FALSE?
Step by step
Solved in 2 steps
- Are all losses realized on the sale of capital assets deductible?A capital gains tax is levied on the sale of which of the following items? Choose all that apply. A. real estate B. income C. stocks D. gasolineOne-half of capital gain is treated as taxable capital gain and one-half of capital loss is deductible as allowable capital loss. Question 11 options: True False
- How do taxpayers determine whether they should deduct their itemized deductions or utilize the standard deduction? Under what circumstances would you expect the after-tax return from an investment in a capital asset to approach that of tax-exempt assets (assuming equal before-tax rates of return)?2. Which of the following situations will result in a future deductible amount? Carrying amount of the asset > tax base of the asset Tax base of the asset > carrying amount of the asset Carrying amount of the liability < tax base of the liability Financial income > Taxable income37. Sale of an capital assets is subject to O a. Regular Income tax O b. Capital Gains Tax O c. Excise Tax O d. Final income Tax
- Which of the following creates temporary difference between financial and taxable income? * Interest on treasury debt securities Accelerated depreciation on plant and equipment O Fines from vilation of law Premiums paid for officer's life insurance (comapny is beneficiary)During the accumulation period, how is the interest credited to an annuity generally taxed in regard to its owner, if the owner is an individual? A) Taxed as ordinary income B) It is tax-deferred and excluded from current taxation Oc) Taxed as capital gains D) Treated as tax lossesWhich of the following may not form part of the regular itemized deductions from the gross income? Allowance for depreciation under cash basis Repairs and maintenance Community tax Losses NOLCO None of the above Foreign income tax claimed as tax credit Excise tax Documentary stamp tax
- The tax rate that is applied against a prepayment penalty is the ______. Group of answer choices a. Ordinary income tax rate b. Depreciation recapture tax rate c. Local property tax rate d. Capital gains tax rateThe value of property for tax purposes, usually a percentage of the fair market value is known as the appraised value. True or FalseWhich is a correct statement? * Gains between related parties are exempt from income tax Losses between related parties are deductible Gains between related parties are taxable All of the above Which is a deductible tax expense? * Surcharges and penalties O Stock transaction tax Real property tax on business properties O Special assessment