FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Related questions
Question
thumb_up100%
1. The following relates to taxpayer
500,000 Interest expense
200,000 interest income-promissory notes
Compute the deductible expense
2. A taxpayer with net sales of P2,000,000 and cost of sales of P1,000,000 incurred P12,000 EAR expenses. Compute the allowable deduction for EAR expenses
3. The personal car of the taxpayer had the following data:
5,000,000 Fair market value
4,000,000 purchase price
10 years estimated useful life
What is the deductible annual
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by stepSolved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- How much is the total gross income? a. 1,320,000 b. 1,400,000 c. 1,470,000 d. 1,550,000arrow_forwardA taxpayer registered in 2010 made available the following financial information for TY2021 Balance Sheet:Asset – Php 50,000,000Liability – Php 30,000,000Stockholders' Equity – Php 20,000.000 Income StatementGross sales – Php 100,000,000Cost of sales – Php 60,000,000 Operating Expenses – Php 50,000,000 How much is the income tax payable under CREATE Law if the taxpayer is a domestic corporation?a. 800,000b. 400,000c. 2,500,000d. 0arrow_forwardWhat is this individual's gross personal cash flow available for debt service if an individual's personal tax returns list: Wages and salaries are $80,000; Non-taxable amount of retirement distribution is $4,000; Taxable amount of retirement distribution is $21,000; Net profit from a sole proprietorship is $8,000; Depreciation within the sole proprietorship is $7,000; Annual living expenses on the individual's personal financial statements are $16,000.arrow_forward
- Taxpayer reported gross non-VAT sales of P100,000 to a senior citizen who is at the same time a qualified PWD. How much is the special allowable deduction for discounts granted to senior citizen or PWDs? a. 20,000 b. 25,000 c. 30,000 d. 40,000arrow_forwardA taxpayer purchased a light truck for $27,500 in June 2021. He uses the truck 100% business .What is his first year MACRS deduction for the truck if the takes the special depreciation deduction (i.e., bonus depreciation? A. $3,160 B. $5.860 C. $10,200 D. $18,200arrow_forwardTaxpayer - Resident citizen Gross sales 2,600,000 Other operating income 200,000 Non-operating income 150,000 Cost of sales 1,000,000 perating expenses 500,000 Non-operating expenses 60,000 How much is the net taxable income using itemized deduction? How much is the net taxable income using optional standard deduction?arrow_forward
- ASSUMING THE TAXPAYER IS A CORPORATION, how much is the net taxable income using OSD? a. 792,000 b. 840,000 c. 882,000 d. 930,000arrow_forward1. A taxpayer paid the following salaries during the year70,000 Salaries of administrative employees40,000 Salaries of sales and marketing employees120,000 Salaries of factory production workersCompute the deductible salaries expense 2. The following relate to the inventory of tools held by the taxpayer120,000 Inventory of tools, January 1, 2022400,000 Purchases of tools130,000 Inventory of tools, December 31, 2022What is the amount of deductible tools expense?arrow_forwardN1. Accountarrow_forward
- A taxpayer with $3,000 in unreimbursed employee expenses and an AGI of $50,000 will have what deductible value of these expenses on his state return? (Assume that all expenses are valid in the state of California) O 1000 O 2000 3000arrow_forwardMr. A provided you with the following information during the taxable year. a. P 144,400 b. P 250,000 c. P114,000 d. P 226,900 e. Answer not givenarrow_forwardAn investor has a taxable income of $125997. He has an investment property which earns $21780 in rental income and incurs $35782 in expenses, including maintenance, local council rates, land tax and interest on a mortgage loan. What is his total income tax payable (excluding the 2% Medicare surcharge)? a. $23865 b. $26865 c. $24865 d. $27865arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education