The Income Statement of the ABC Corporation in Puerto Rico, prepared on a tax basis, presents the following results: ABC Corporation Income Statement (Tax Base) For the year ended December 31, 20X1 Income $ 1,500,000 Cost of sale (600,000) Gross margin 900,000 Salaries (100,000) Donations to non-profit entities (40,000) Other operational expenses (200,000) Net income $ 560,000 Determine the deduction for donations that the ABC Corporation may claim in tax year 20X1. a. $ 56,000 b. $ 10,000 c. $ 40,000 d. $ 4,000

The Income Statement of the ABC Corporation in Puerto Rico, prepared on a tax basis, presents the following results: ABC Corporation Income Statement (Tax Base) For the year ended December 31, 20X1 Income $ 1,500,000 Cost of sale (600,000) Gross margin 900,000 Salaries (100,000) Donations to non-profit entities (40,000) Other operational expenses (200,000) Net income $ 560,000 Determine the deduction for donations that the ABC Corporation may claim in tax year 20X1. a. $ 56,000 b. $ 10,000 c. $ 40,000 d. $ 4,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

4. XYZcorporation reported the following gross income and expenses: Gross income in the Philippines is 38,000,000 while deductions is 15,000,000 for a total taxable income of 23,000,000. Abroad, the gross income is 14,000,000 while the deduction is 3,000,000 for a total taxable income of 11,000,000. Compute the income tax due for 2021 if XYZ is a domestic corporation. P10,200,000 P6,900,000 P8,500,000 P6,800,000
The Ohio Corporation had a 20XX taxable income of $50,000,000 from operations after all operating costs but before 1. interest charges of $500,000, 2. dividends received of $45,000, 3. dividends paid of $10,000,000, and 4. income taxes. Using the tax schedule in Table 2.3. what is Ohio's income tax liability? What are Ohio's average and marginal tax rates on taxable income from operations? Multiple Choice $17,329,725, 34.66%, 35%, respectively $13,829,725, 27.66%, 35%, respectively $17,340.750, 34.68%, 35%, respectively $6,416,667, 12.83%, 35%, respectively
Calculate Anaheim Corporation's excess net passive income tax in each of the following alternative scenarios: a. Passive investment income, $100,000; expenses associated with passive investment income, $40,000; gross receipts, $208,000; taxable income if a C corporation, $22,400; corporate Earnings and profit, $41,000. Excess net passive income tax??? b. Passive investment income, $100,000; expenses associated with passive investment income, $70,000; gross receipts, $208,000; taxable income if a C corporation, $5,600; corporate Earnings and profit, $41,000. Excess net passive income tax??? c. Passive investment income, $100,000; expenses associated with passive investment income, $40,000; gross receipts, $208,000; taxable income if a C corporation, $22,400; corporate Earnings and profit, $0. Excess net passive income tax???
Tennis Pro is headquartered in Virginia. Assume it has a state income tax base of $240,000 after making the appropriate adjustments. Of this amount, $60,000 was non-business income.The non- business income included the following: $8,000 of dividend income, $15,000 of interest income, $37,000 of royalty income for an intangible used in Maryland. Tennis Pro has the following sales, payroll and property factors: Virginia Maryland Sales 40% 20% Payroll 80% 5% Property 90% 5% Assume that Virginia uses an equally weighted three-factor formula. Assuming a Virginia corporate tax rate of 6 percent, what is Tennis Pro's Virginia state tax liability? (Round your answer to the nearest whole number.)
TyroneCo, an S corporation with a positive E & P balance, reports gross receipts for the year totaling $533,000 (of which $266,500 is passive investment income). Expenditures directly connected to the production of the passive investment income total $106,600. Compute Tyrone's passive investment income tax. If required, round your final answer to the nearest dollar.
1. Assuming the taxpayer is a CORPORATION, how much is the OSD and net taxable income using OSD?
Please do this typewritten only. Thank you
ABC Corp. in 2010 made available the following financial information for TY2021: Balance sheet: Asset - 50,000,000 Liability - 30,000,000 Stock Equity - 20,000,000 Income statement: Gross sales - 100,000,000 Cost of sales - 60,000,000 Operating Expense - 50,000,000 How much is the income tax payable under CREATE Law if the taxpayer is a domestic corporation?
Sinigang na Baboy Company, a domestic corporation, started operations in the latter part of the first quarter of 2020. The company opted to report its financial statements for the nine months ended December 31, 2020. The pretax financial income for the period was P1,200,000. In preparing the income tax return for the period, the tax accountant determined the following differences between 2020 financial income and taxable income. a. Because of non-compliance with some local government requirements, the city treasurer assessed fines and penalties totaling P22,500. b. The company made a donation to Hospicio de San Jose amounting to P25,000. Tax laws consider a donation of this kind as non-deductible in full amount. c. Cash dividends received from equity investments in a domestic corporation, P5,200. d. Rent was paid in advance for one year amounting to P240,000. The financial statement of Sinigang na Baboy Company reported prepaid rent of P60,000. e. The company uses straight-line…
For 20X1, XYZ Corporation has a Gross Income of $ 1,000,000 and a total of Ordinary and Necessary Expenses of $ 600,000. Expenses include an item of $ 50,000 for Donations. All items are presented on a tax basis. The entity has not incurred net operating losses or received dividend income. Determine the amount of deductible donations for XYZ Corporation in 20X1. Select one: O a. S45,000 O b. S35,000 O c. SO O d. $50,000
H8.
Please Do not Give image format