1 Nina Corporation, with the total assets of P15,000,000 (MSME), shows the following data duri Sales 500,000 Interest Income, net of 20% final tax 24,000 Cost of Sales 300,000 Salary expense 120,000 60,000 Interest expense Rent expense 24,000 6,000 5,000 Advertising expense Depreciation expense What is the correct amount of itemized deduction?
Q: 40, is single and has no dependents. She is employed as a legal secretary by Legal Services, Inc.…
A: Taxable Income - Taxable income is the amount of your gross income that the IRS considers to be…
Q: records of the Fenway Company for 2022. Fenway Company 2022 Net sales Revenue 38,800 Unearned…
A: The financial statement plays an important role for every company, with its help, that company can…
Q: Your client, age 65, has a gross estate valued at $15.2 million. He and his second wife have two…
A: A combination A-B-C (power of appointment, family bypass, and QTIP) trust arrangement can help the…
Q: How is the practice of data analytics used within management accounting? Provide an example.
A: Data analytics can be used within management accounting to provide a more detailed analysis and…
Q: Multiple Choice O O O O cost-benefit constraint historic cost principle full disclosure principle…
A: Accounting principles are the set of rules and guidelines adopted that are used in preparing…
Q: Please include references: Justify the use of taxpayer resources to correct externalities and other…
A: Taxpayer resources are used to correct externalities and other market failures because they enable…
Q: Amazon.com, Inc., headquartered in Seattle, WA, started its electronic commerce business in 1995 and…
A: Accounting equation is also called balance sheet equation. It is a relationship between assets…
Q: Illustration 2 Entity A is having inventory amounting 100,000 in total with the details as below:…
A: Entity A has estimated its materiality limit of Rs. 30,000 which suggests that everything which is…
Q: The database shows estimated expenses for the last nine months of the coming year. Define range…
A: A database seems to be a collection of information that has been prepared for simple access,…
Q: Two grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a…
A: Direct Material Budget :— This budget is prepared to estimate the units and cost of raw materials to…
Q: s convertible into 35 common shares, which are currently trading at $34 per share. Similar bonds…
A: Bonds - Bonds are fixed-income securities that reflect loans from investors to borrowers (typically…
Q: Constructions Ltd (Diamond) is a large construction company. Diamond is an Australian resident…
A: Income Tax - A tax levied against people or organizations (taxpayers) in relation to their income or…
Q: The following accounts balances and other financial information are drawn from the records of the…
A: Operating activities of cash flow statement includes activities related to day to day business…
Q: Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions May 11…
A: Journal entry: It refers to the recording of company's financial transactions in it's primary book…
Q: The balance sheet at December 31, 2024, for Nevada Harvester Corporation includes the liabilities…
A: Determination of Current and Non Current Liabilities Current Liabilities are obligations that must…
Q: ABC estimates potential uncollectable accounts receivables using Aging Accounts Receivable approach.…
A: Given Customer Total Not yet due Number of days Past Due 1-30 31-60 61-90 over 90 K.…
Q: Galino Company, which has only one product, has provided the following data concerning its most…
A: Absorption costing is also known as full costing. It is the method of adding all costs incurred in…
Q: Predetermined Overhead Rates Mark Corporation estimates its manufacturing overhead to be $90,000 and…
A: Overheads means all type of indirect costs and expenses being incurred in the business. This is also…
Q: FICA and/or self-employment tax
A: Self-employed individuals have to pay self-employment tax. This tax is calculated from the net…
Q: Entry for Factory Labor Costs The weekly time tickets indicate the following distribution of labor…
A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: Which of the following is a capital receipt? (a) Subscriptions (b) Sale of used sports material…
A: Capital receipts are cash flows resulting from the sale of fixed assets, debts and shares. It is a…
Q: ential house and lot located in Manila on January 5, 2018 for 8,000,000. The property was purchased…
A: Capital Gain - A capital gain is a rise in the value of a capital asset that is realized upon the…
Q: Discount Amortization On the first day of the fiscal year, a company issues a $1,100,000, 7%, 7-year…
A: To record financial accounting transaction system, ledger book entries are moved from the diaries…
Q: Which of the following statements regarding activity-based costing (ABC) is NOT correct? a. Under…
A: Activity-based costing (ABC) is a method of assigning overhead costs to products or services based…
Q: For each of the following situations, write the equation needed to calculate the yield to maturity,…
A: ANSWER:- 1. Calculation of yield - to - maturity for simple loan: Yield - to - maturity =…
Q: When Greenway, Incorporated sells 43,200 units, its total fixed cost is $73,440. What is its total…
A: Total fixed costs are costs that remain the same regardless of the number of units sold, so the…
Q: Cox Electric makes electronic components and has estimated the following for a new design of one of…
A: This is a case or a question in which concepts of break-even analysis and cost volume profit…
Q: State whether the statements are true or false -- a) An advance receipt of subscription from…
A: Not-for-profit organization (NFPO) is one that does not earn profit for its owners. All money earned…
Q: In order for the auditor to perform the audit work, the accountant does not have to first prepare…
A: An auditor is a person authorized to review and verify the accuracy of financial records and ensure…
Q: t is the principal interest at 8% simple interest on May 21, 2017 that will amount to PHP 14,615.00…
A: The simple interest rate is very simple and there is no interest on interest and there is interest…
Q: What would be the tax treatment of a superficial loss?
A: A: Permanently denied is incorrect because a superficial loss is not permanently denied, but rather…
Q: Scala Oil has the following information available regarding its three divisions: production,…
A: The corporation may have numerous departments, and one department may sell its output to another…
Q: 3. Accumulate Php85,000 for 20 months at a simple interest rate of 12%? (To accumulate an amount…
A: Accumulated amount will be total amount at the end of the 20 months that will include the principal…
Q: Q.2 Amsterdam Corporation produces medical grade isotopes. The isotopes are produced in a single…
A: Answer- Cost per Equivalent Units - The cost per equivalent unit is calculated for direct…
Q: The following is a payroll sheet for Metlock Imports for the month of September. The company is…
A: The journal entry can be defined as the process of accounting where the transaction is recorded in…
Q: Property income includes
A: Property is a long term asset which is reported under the head plant, property, and equipment in the…
Q: If the cost of materials were not reduced, then what increase in sales does the firm need to…
A: To solve this question the concept of costing will be applied. Direct materials and direct labor are…
Q: Jessica is single and has a 2021 taxable income of $203,300. She also received $15,000 of tax-exempt…
A: Marginal tax rate: It implies to the rate at which the tax is being paid by the taxpayer on his…
Q: Closing balances of accounts are: Buildings 1000, Land 500, Material 200, Suppliers 400, Bank loan…
A: The balance sheet is a summary of permanent accounts prepared at the end of the accounting period.…
Q: 2.14A Write up the asset, capital and liability accounts in the books of D. Gough to record the…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: What needs to be proven in order to find an accountant liable for negligence? Explain the four…
A: The following four factors are considered in determining negligence liability: Due Diligence: Due…
Q: in February 10, 2019, Grettle purchases 10 calls on Green Corporation for $220 per cal. Each call…
A: Comment - Multiple Questions Asked Options - A contract known as an option gives its owner, the…
Q: Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed…
A: Sales or manufacturing volume fluctuations have no effect on fixed costs, which are outlaid that…
Q: Fuzzy Monkey Technologies, Inc., purchased as a short-term investment $80 million of 8% bonds, dated…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate…
A: Answer Formula Activity rate = Estimated overhead cost / Expected activity
Q: Why is it important that FINANCIAL accounting provide a common set of standards that are used by all…
A: Financial accounting is a specific branch of accounting involving a process of recording,…
Q: Direct materials Schedule of Cost of Goods Manufactured For Year Ended December 31 Raw materials…
A: The cost of the products manufactured seems to be significant since it provides management with a…
Q: An auditor is not responsible for obtaining absolute assurance but only reasonable assurance.…
A: Auditor is referred to the professional who is responsible to verify the accounting records of a…
Q: ploys process costing system. A unit of prod hing before it is complete. Information regard Feb 1…
A: Inventory - Inventory is a crucial asset for any business. It is described as the assortment of raw…
Q: Ted and Alice were divorced in January 2018. The provisions of the divorce decree and Alices's…
A: Mortgage - Mortgages are a sort of loan that can be used to buy or keep up a house, land, or another…
Nina Corporation, with the total assets of P15,000,000 (MSME), shows the following data during taxable year: | |
Sales | |
Interest Income, net of 20% final tax | |
Cost of Sales | |
Salary expense | |
Interest expense | |
Rent expense | |
Advertising expense | |
Depreciation expense | |
What is the correct amount of itemized deduction? |
Step by step
Solved in 2 steps
- A company reported in the income statement for the current year P900,000 income before provision for income tax. Please consider the following information: Rent income received in advance P150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation P100,000Income tax rate 30% 1. How much is the taxable income?A. 950,000B. 750,000C. 850,000D. 700,0002. How much is the accounting income subject to tax?A. 900,000B. 750,000C. 700,000D. 225,000Thank you.A company reported in the income statement for the current year P900,000 income before provision for income tax. Please consider the following information: Rent income received in advance P150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation P100,000Income tax rate 30% How much is the accounting income subject to tax?A. 900,000B. 750,000C. 700,000D. 225,000Azure Company reported in the income statement for the current year P900,000 income before provision for income tax. Please consider the following information: Rent income received in advance P150,000 Interest income on time deposit 200,000 Depreciation deducted for income tax purposes in excess of financial depreciation P100,000 Income tax rate 30% How much is the permanent difference?A. 200,000B. 100,000C. 150,000D.350,000
- Earnings (loss) Depreciation (assets have a cost of $390,000) CCA Non-deductible expenses Tax rate Taxable income 1. What is the amount of the taxable income or loss in each year? (Negative amounts and deductible amounts should be indicated by a minus sign.) Accounting earnings Permanent difference: Accounting income subject to tax Temporary difference: Taxable income 20X7 20X7 (first year of operations) $99,000 $50,000 $65,000 $19,000 25% 20X8 20X8 $ (168,000) $ 50,000 $ 75,000 $ 19,000 25%A company reported in the income statement for the current year 900,000 income before provision for income tax. Please consider the following information: Rent income received in advance 150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation 100,000Income tax rate 30% What amount should be reported as current provision for income tax or current tax expense for the current year?A. 225,000B. 270,000C. 230,000D. 220,000A company reported in the income statement for the current year P900,000 income before provision for income tax. Please consider the following information: Rent income received in advance 150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation 100,000Income tax rate 30% Required: 1. How much is the taxable income?2. How much is the accounting income subject to tax?3. How much is the permanent difference?4. How much is the net temporary differences?
- A company reported in the income statement for the current year 900,000 income before provision for income tax. Please consider the following information: Rent income received in advance 150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation 100,000Income tax rate 30% What amount should be reported as current provision for income tax or current tax expense for the current year?PROBLEM 1 Xavier Company provided the following information for its first year of operations ended December 31, 2021 in connection with the preparation of its income tax return:Taxable income P 4,000,000Non-deductible expenses 200,000Non-taxable revenue 300,000Deferred income on installment saleincluded in financial income but taxable in 2022 450,000Doubtful accounts recorded 100,000Financial depreciation 300,000Tax depreciation 350,000Estimated warranty cost accrued in2021 but not deductible for tax purposes until paid…An entity provided the following net of tax figures for the current year: Net income 7,700,000 Net remeasurement loss on defined benefit plan 300,000 Unrealized gain on FA@FVOCI 1,500,000 Reclassification adjustment for gain on sale of 250,000 FA@FVOCI included in the net income Share warrants outstanding 400,000 Cumulative effect of change in accounting 500,000 policy - credit Interest revenue 100,000 Equity in associate's earnings 300,000 Prior period error - underdepreciation 200,000 What is the comprehensive income for the current year? A. 8,650,000 B. 8,900,000 C. 8,950,000 D. 9,050,000
- Problem 2: KAY Co. reported net income for the current year 2021 at P4,180,000 before taxes. Included in the determination of the said net income were: Current tax rate 30% P 84,000 P 205,000 Non-deductible expenses Non-taxable income At the beginning of the year: Cumulative temporary difference creating future deductible amount Cumulative temporary difference creating Future taxable amount P 1,110,000 P 567,000 At the end of the year: Cumulative temporary difference creating future deductible amount Cumulative temporary difference creating P 720,000 P 632,000 Required: 9. What is the total deferred tax asset to be presented in the 2021 Statement of Financial Position? 10. What is the total deferred tax liability to be presented in the 2021 Statement of Financial Position?x Company reports the following pretax income (loss) for both book and tax purposes. Year. Pretax income tax rate 2018 120,000 20% 2019 93,000 20% 2020. (82,000) 25% 2021 110,000 25% The tax rates listed were enacted by the beginning of 2018 Prepare the journal entries for years 2018-2021 to record income tax expense (benefit) and income taxes payable and the tax effects of the loss carryforward assuming that based on the weight of available evidence it is more likely than not that one half of the benefits of the loss carryforward will not be realized.1. Pine Corporation’s books showed pretax income of P600,000 for the year ended December 31, 20x1. In the computation of federal income taxes, the following data were considered: Gain on involuntary conversion (expropriation) P350,000 Depreciation deducted for tax purposes in excess of depreciation deducted for book purposes 50,000 Estimated tax payments during 20x1 70,000 Income tax rate 30% What amount should Pine report as its current income tax liability on its December 31, 20x1, balance sheet?