overvaluation penalty for each of the following independen payer's reporting of the fair market value of charitable-cor h case assume a marginal income tax rate of 35 percent for 1 percent for corporations. n n Corrected IRS Value $30,000 30,000 40,000 150,000 Reported Valuation $40,000 50,000 50,000 210,000
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- LO.3, 4, 5 Using the legend provided below, classify each statement under 2019 tax law. a. A foreign tax credit is available. b. The deduction of charitable contributions is subject to percentage limitation(s). c. Excess charitable contributions can be carried forward for five years. d. On the contribution of inventory to charity, the full amount of any appreciation can be claimed as a deduction. e. Excess capital losses can be carried forward indefinitely. f. Excess capital losses cannot be carried back. g. A net short-term capital gain is subject to the same tax rate as ordinary income. h. The deduction for qualified business income may be available. i. A dividends received deduction is available. j. The like-kind exchange provisions of 1031 are available. k. A taxpayer with a fiscal year of May 1April 30 has a due date for filing a Federal income tax return of July 15. l. Estimated Federal income tax payments may be required.GIVEN: Taxpayer is a proprietary educational institution. Taxable period is 2021. • Financial data: Related Unrelated Activities Activities P15,000,000 P25,000,000 11,000,000 14,000,000 Gross Income Expenses Net COMPUTE: Income tax 5,000,000 10,000,000 A. P140,000 B. P240,000 C. P3,500,000 O D. P6,000,000 O OProblem 15-54 (LO 15-3) Determine taxable income in each of the following instances. Assume that the corporation is a C corporation and that book income is before any income tax expense. Required: a. Book income of $50,000 including capital gains of $2,000, a charitable contribution of $1,000, and meals expenses of $3,000. b. Book income of $92,000 including capital losses of $3,000, a charitable contribution of $12,000, and meals expenses of $3,000. c. Book income of $76,000 including municipal bond interest of $2,000, a charitable contribution of $5,000, and dividends of $3,000 from a 10% owned domestic corporation. The corporation also has an $8,000 charitable contribution carryover. d. Book income of $129,000 including municipal bond interest of $2,000, a charitable contribution of $5,000, and dividends of $7,000 from a 70% owned domestic corporation. The corporation has a capital loss carryover of $6,000 and a capital gain of $2,500 in the current year. a. Taxable income b.…
- 43. A non-individual taxpayer made available the following financial information covering TY 2021: Statement of Financial Position Statement of Comprehensive Income Assets 20,000,000 Gross receipts 5,000,000 Liabilities 15,000,000 Cost of service 3,000,000 Stockholders’ Equity 5,000,000 Gross profit 2,000,000 Expenses 1,000,000 Net income 1,000,000 Assuming the taxpayer is a domestic corporation, the income tax due is? Group of answer choices b. Php 300,000 c. Php 250,000 d. Php 0 a. Php 200,000GIVEN: • Taxpayer is a non-stock and non-profit educational institution. It has been granted with a Certificate of Tax Exemption Financial data this taxable period (2021): Related Unrelated Activities Activities Gross Income Expenses Net P35,000,000 10,000,000 25,000,000 P5,000,000 1,000,000 4,000,000 COMPUTE: Taxable incomeRank the following three single taxpayers in order of the magnitude of taxable income. Assume none of the taxpayers contributed to charity this year. Note: First mean highest taxable income, third means lowest taxable income. Ahmed Baker Chin Gross income $ 90,000 $ 90,000 $ 90,000 Deductions for AGI 14,000 7,000 0 Itemized deductions 0 7,000 14,000 Deduction for qualified business income 0 2,000 10,000
- 44. A non-individual taxpayer made available the following financial information covering TY 2021: Statement of Financial Position Statement of Comprehensive Income Assets 20,000,000 Gross receipts 5,000,000 Liabilities 15,000,000 Cost of service 3,000,000 Stockholders’ Equity 5,000,000 Gross profit 2,000,000 Expenses 1,000,000 Net income 1,000,000 Assuming the taxpayer is a domestic corporation, the income tax due is? Group of answer choices c. Php 250,000 d. Php 0 a. Php 200,000 b. Php 300,000GIVEN: Taxpayer is a PEZA-registered enterprise • Taxable year is 2021 • Financial data Related Unrelated Activities Activities Gross Income Expenses Net P45,000,000 P15,000,000 20,000,000 25,000,000 6,000,000 9,000,000 COMPUTE: Tax on the income O A. P1,700,000 В. Р2,250,000 О С. Р3,000,000 O D. P4,500,000 ОООMultiple-choice question Compute for the Income tax Given: Taxpayer is a proprietary educational institution. Taxable period is 2021. Financial data: Related Activities Unrelated Activities Gross Income P 15,000,000 P 25,000,000 Expenses 5,000,000 11,000,000 Net 10,000,000 14,000,000 A. P140,000 B. P240,000 C. P3,500,000 D. P6,000,000
- Hw.67. X corporation, an accrual basis taxpayer wishes to adopt the cash basis method for 2022. At the endof 2021, X has accounts receivable of 10,000 and accrued expenses of 8,000. Assume these amountssettle (are paid) in 2022. Assuming the IRS grants consent, what amounts are reflected on X’s taxreturns for 2021 and 2022 based on just these facts?8. Which of the following statements is not correct?* a. The OSD is an amount equal to 40% of the gross income from practice of profession of the taxpayer. b. The OSD is not available against compensation income arising out of an employer-employee relationship. c. The election of OSD is irrevocable for the taxable year for which the choice is made. d. Unless the taxpayer signifies in his return his intention he shall be considered as having availed of the itemized deduction.Who may avail tax exemption of 250,000? a. Compensation earners b. Purely in business or Professionals c. Mixed Earners d. All of the above e. None of the Above
