Identify a FALSE statement. A government hospital is income tax exempt on its related income. A private hospital is subject to regular income tax on its income, related or unrelated. A non-profit hospital is subject to a preferential tax rate of 1% if its gross income from unrelated activities does not exceed 50% of its total income. All of the above None of the above

Identify a FALSE statement. A government hospital is income tax exempt on its related income. A private hospital is subject to regular income tax on its income, related or unrelated. A non-profit hospital is subject to a preferential tax rate of 1% if its gross income from unrelated activities does not exceed 50% of its total income. All of the above None of the above

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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St. Therese is a private educational institution. STATEMENT 1: The income of the school from tuition and miscellaneous fees collected from students is tax-exempt. STATEMENT 2: The income of the school from rentals of its facilities to non-students is subject to regular income tax. * True, True False, False True, False False, True
Which of the following is wrong? If the seller is a non-VAT registered seller, the government shall withhold a 3% final percentage tax on the sale before payment. The final withholding system on the sales to the government and GOCC will no longer be applicable starting 2021. VAT treatment on sales to government is the same as VAT treatment on sale to non-government taxpayer except for the mandatory withholding of 5% by the government agency who avail the goods or services offered by the seller. None of the choices
Cost Allocation and Taxation at Nonprofit Organizations Nonprofit organizations are exemptfrom federal income tax except for income from any activities that are unrelated to the nonprofit’scharitable purpose. An example is the use of a laboratory for both tax-exempt basic medical researchand for testing a taxable product for commercial pharmaceutical firms. A concern in these cases is thattax-exempt nonprofit organizations will be able to compete unfairly with for-profit firms because oftheir tax-exempt status. The key argument is that common costs for the nonprofit’s exempt and businessactivities will be used to “subsidize” the for-profit business (in this case, the taxable product testing).Required How would cost allocation play a role in affecting the operating results of a nonprofit organization that has both business and charitable activities?
Which of the following are characteristics of a gift tax charitable deduction? It is only for the amount of the charitable gift in excess of the annual exclusion amount. It allows up to 50% of the value of the gifted property to go to charity free of gift tax. The donee charity assumes any gift tax liability. It is available only for gifts to a qualified charity. A) II and III B) I and IV C) III and IV D) I and II
1. For tax purposes, IPC is required to file Form 1099s for contractors and Form W-2s for employees. How many of both forms do they need to prepare for each state? Because IPC pays their tax accountants per prepared form, this information can help the controller estimate the fee to be paid. Form 1099 W-2s 2. IPC has established an internal policy to hire only in-state employees to simplify its tax filings. The state the office is located in and the employee's state of residency should be the same. Per state, to what extent are the offices compliant with this policy (as a percentage)? (Round answers to 2 decimal places, e.g. 52.75%.) DE MD % % % NJ % PA
Which of the following is true? i. The general percentage tax is an explicit tax on consumption. ii. VAT and percentage tax are mutually exclusive. iii. In business taxes, the statutory taxpayer is normally the economic taxpayer. iv. The CREATE Law amended the VAT threshold to P3,000,000 from P1,919,500 (formerly P1,500,000). v. All of the other choices is incorrect.
For-profit healthcare Corporation creates a bond issue that receives its credit ratings from the agency of the state government where the health care business is incorporated. Group of answer choices True False
The non-profit institution must satisfy the following requisites to be a qualified donee that is exempt from donor's tax, except
please answer with reason
Which of the following is wrong?A. If the seller is a non-VAT registered seller, the government shall withhold a 3% finalpercentage tax on the sale before payment.B. The final withholding system on the sales to the government and GOCC will no longerbe applicable starting 2021.C. VAT treatment on sales to government is the same as VAT treatment on sale to non-government taxpayer except for the mandatory withholding of 5% by the government agency who avail the goods or services offered by the sellerD. None of the choices.
1. In general, fixed or variable allowances which are received by a public officer or employee or officer or employee of private entity, in addition to the regular compensation, fixed for his position or office, is compensation subject to income tax and consequently, creditable withholding tax on compensation income. 2. Representation and Transportation Allowances (RATA) granted under Section 34 of the General Appropriations Act to certain officials and employees of the government are considered reimbursements for the expenses incurred in the performance one's duties rather than as additional compensation. A= 1st statement is true, second statement is false. B= 1st statement is false, second statement is true. C= Both statements are false. D= Both statement are true. OD OC OB O A
Which of the following is not a true statement regarding revenues from various types of nonexchange transactions? Derived tax revenues occur as a result of sales and or income tax. Imposed nonexchange revenues consist of only fines and penalties assessed by the governing agency. Government mandated nonexchange transactions includes grants from the federal government to the local public-school system for a free lunch program. Voluntary nonexchange transactions can originate from a governmental agency or private citizen organization. Imposed nonexchange transactions revenue recognition is made in the time period when the resulting resources are required to be used or in the first period in which use is permitted.