Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 18, Problem 21DQ
To determine
Explain the tax accounting implications for the incorrect estimate of the total costs.
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Then, calculate the Taxable Income for 2021. (Round your answers to the nearest dollar.)
Employment income
ABIL
Taxable capital gain
Allowable capital loss (disallowed ABIL)
Net taxable capital gains
2021 Net income
Capital gains deduction
2016 Net capital loss deducted
2021 Taxable income
19. Miss Barakah is the owner of Mini Market Barakah. She has prepared financial
statements for the year ending 31 December 2022. Why does she need to prepare
financial statements?
A Ensure that the investment was used optimally
B Attracting new investors to invest
C Determine the amount of taxable income.
D Allow bonus claims and salary increments to be made
20. Information below relates to Mr. Azrex who needs a financial statement.
I need a financial statement to
make an assessment of whether
to grant or renew a credit facility.
Who is Mr. Azrex?
A Competitor
B Investor
C Owner
D Supplier
21. Adrian Sdn. Bhd. supplies shirts to boutiques across the country. This company incurs
fixed costs amounting to RM300,000. The selling price of a shirt is RM180 and the
variable cost of a shirt is RM95. How many shirts should be sold to ensure that the
company does not incur losses?
A 1,091
B 1,667
C 3,158
D 3,530
1. A taxpayer forgot to file and pay his annual income tax return for the year 2019. He only recalled it when he received a notice of assessment from the BIR on June 15, 2020 obliging him to pay on June 30, 2020. He filed it only on August 15, 2020. In computing the interest, when should he start counting the number of days of delinquency?
A. December 31, 2019
B. April 15, 2020
C. June 15, 2020
D. June 30, 2020
2. X died leaving his surviving spouse, legitimate child, recognized illegitimate child, and parents. Who inherits from X?
a. Surviving spouse and legitimate child only
b. Surviving spouse, legitimate child, and parents
c. Surviving spouse, legitimate child, and recognized illegitimate child
d. Legitimate child only
3. In donor’s taxation, which is not considered in determining the taxability of donation?
A. Tax classification of the donor
B. Location of the property
C. Relationship of the donee to the donor
D.…
Chapter 18 Solutions
Individual Income Taxes
Ch. 18 - Prob. 1DQCh. 18 - Prob. 2DQCh. 18 - Prob. 3DQCh. 18 - Prob. 4DQCh. 18 - Prob. 5DQCh. 18 - Prob. 6DQCh. 18 - Prob. 7DQCh. 18 - LO.2 In 2019, the taxpayer became ineligible to...Ch. 18 - LO.2 Osprey Corporation, an accrual basis...Ch. 18 - Prob. 10DQ
Ch. 18 - Prob. 11DQCh. 18 - Prob. 12DQCh. 18 - LO.2 Emerald Motors is an automobile dealer. The...Ch. 18 - Prob. 14DQCh. 18 - Prob. 15DQCh. 18 - Prob. 16DQCh. 18 - Prob. 17DQCh. 18 - LO.4, 7 In December 2019, Carl Corporation sold...Ch. 18 - LO.2, 5 What are the similarities between the crop...Ch. 18 - Prob. 20DQCh. 18 - Prob. 21DQCh. 18 - Prob. 22DQCh. 18 - LO.6 Largo Company is an engineering consulting...Ch. 18 - Prob. 24DQCh. 18 - Prob. 25DQCh. 18 - Prob. 26DQCh. 18 - Prob. 27CECh. 18 - LO.2 Gaffney Corporation is a wholesale...Ch. 18 - Prob. 29CECh. 18 - LO.2 In 2019, Chaya Corporation, an accrual basis,...Ch. 18 - Prob. 31CECh. 18 - Prob. 32CECh. 18 - Prob. 33CECh. 18 - Prob. 34CECh. 18 - Prob. 35CECh. 18 - Prob. 36CECh. 18 - Prob. 37CECh. 18 - Prob. 38CECh. 18 - Prob. 39PCh. 18 - Prob. 40PCh. 18 - Prob. 41PCh. 18 - In 2018, Juan entered into a contract to write a...Ch. 18 - Prob. 43PCh. 18 - Compute Marys income or deductions for 2019 using...Ch. 18 - What accounting method (cash or accrual) would you...Ch. 18 - Blue Company, an architectural firm, has a...Ch. 18 - How do the all events and economic performance...Ch. 18 - Ross Company is a C corporation providing property...Ch. 18 - Prob. 49PCh. 18 - Prob. 50PCh. 18 - Floyd, a cash basis taxpayer, has received an...Ch. 18 - Prob. 52PCh. 18 - Prob. 53PCh. 18 - On June 30, 2019, Kelly sold property for 240,000...Ch. 18 - Prob. 55PCh. 18 - Prob. 56PCh. 18 - Prob. 57PCh. 18 - Prob. 58PCh. 18 - Prob. 59PCh. 18 - Ostrich Company makes gasoline storage tanks....Ch. 18 - Prob. 61PCh. 18 - Grouse Company is a furniture retailer whose...Ch. 18 - Lavender Manufacturing Company began business in...Ch. 18 - Silver Creek Ranch LLC is a small, family-owned...Ch. 18 - In 2019, Gail changed from the lower of cost or...Ch. 18 - At the end of 2020, Magenta Manufacturing Company...Ch. 18 - Prob. 67PCh. 18 - Prob. 68PCh. 18 - Prob. 69PCh. 18 - Prob. 1RPCh. 18 - Prob. 2RPCh. 18 - Prob. 3RPCh. 18 - Paula has sales that qualify to be reported on the...
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- Required information [The following information applies to the questions displayed below.] In 2021, Zach is single with no dependents. He is not claimed as a dependent on another's return. All of his income is from salary and he does not have any for AGI deductions. What is his earned income credit in 2021 in the following alternative scenarios? Use Exhibit 8-11. (Round your intermediate and final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.) c. Zach is 29 years old and his AGI is $19,000. Earned income creditarrow_forward3. Mr. So filed his 2022 income tax return on June 30, 2023. The BIR discovered a deficiency income tax on August 15, 2024. When should the deficiency tax assessment be served? a. On or before August 15, 2027 b. On April 15, 202 c. On or before June 30, 2026 d. On or before April 15, 2026arrow_forward4. Mr. Ankit retired on April 30, 2020. He will be receiving gratuity of *5.5 lakh and leave encashment of *2.20 lakh. He will also be receiving employee and employer contribution to provident fund. If he opt for the reduced rate of tax. Explain whether he will be eligible for the exemption under Income Tax Act,arrow_forward
- 10. A taxpayer filed his income tax return on October 28, 2020. The deadline for the return was April 15, 2020. If he has P40,000 net tax due, compute the penalties in the form of interest. * О а. Р 2,564 O b. P 2,590 O c. P 2,538 O d. P 2,578arrow_forwardHow do I calculate self-employment taxes with self-employment earnings. For example Bob Marks has self-employment earnings of 149,200, what would be his total self-employment taxes for 2021.arrow_forwardTrue or False Points paid in connection with the purchase of a second residence may be deducted in the year paid. Answer: Points paid to refinance a mortgage on a principal residence are fully deductible in the year paid. Answer: If an employee incurs travel expenditures and is fully reimbursed by the employer, neither the reimbursement nor the deduction is reported on the employeeʹs tax return if reporting is pursuant to an accountable plan. Answer: answer all 3arrow_forward
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