1 What is the importance of VAT Exen Transactions with regard the nature c proportionate tax? Provide five (5) VAT exempt transacti
Q: A firm has no debt but can borrow at 8 percent. The firm's WACC is currently 11 percent, and the tax…
A: Unlevered Firm :— It is the type of company that are all equity financed. There is no source of debt…
Q: Prepare journal entries for the transactions listed below and post them to the T-accounts. a.…
A: The foremost reporting of the daily business transactions is to be done in the form of journal…
Q: Why are the expenses ignored?
A: As per the question after-tax cash flow from the sale is to be calculated
Q: For the accounting memo, Just explain THE CONCEPT of relevant cost. DON'T INCLUDE ANYTHING…
A: Introduction:- Relevant cost primarily used in managerial accounting. The relevant cost concept…
Q: TAC Inc., produces two products – Tics and Toes, from one process. The joint processing costs of…
A: Relative sales value method or Sales value at split off point method can be used when every product…
Q: A-$1,500 unfavorable. B-$3,300 unfavorable. C-$1,500 favorable. D-$3,300 favorable. E-$4,200…
A: Introduction:- Standard costs are estimates of the actual costs in a company’s production process…
Q: Bend Ski and Board Shop sell snowboards. They made the following purchases of the Supermodel X…
A: The inventory can be valued differently under various methods. The various methods for inventory…
Q: Max purchased new computer equipment with a capital cost of $87,000 while he disposed of $22,000 in…
A: The practice of allocating the cost of a tangible or physical item over the course of that asset's…
Q: Calculate ending inventory, cost of goods sold and gross profit using: A FIFO B LIFO B AVERAGE COST
A: 1. First in First Out (FIFO): FIFO is one of the method of inventory valuation under which inventory…
Q: Imagine that you’ve been asked to explain 1 of the major accounting ratios to a group of high school…
A: Current Ratio: In simple words, current ratio indicates how a business can maximize the liquidity of…
Q: EasyWriter manufactures an erasable ballpoint pen, which sells for $1.75 per unit. Management…
A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: 2. Post the journal to a ledger of four-column accounts. 3. Prepare an unadjusted trial balance. 4.…
A: The first step in accounting is a journal entry, which is used to record a business transaction…
Q: Interview Notes Leon Martin is single and has never been married. Leon earned wages of $23,000…
A: Answer is true. Leon can claim the students loan interest deduction as an adjustment to income on…
Q: Oak Canon produces and sells 13,900 units of Product X each month. The selling price of Product X is…
A: Income can be calculated by deducting the variable cost and fixed cost from the sales revenue. The…
Q: How should the cost of intangible assets with indefinite lives be accounted for? O They should be…
A: the intangible assets are those are said to which do not have the physical existence and they cannot…
Q: The difference between LIFO and FIFO valuation methods is $2,500. Given that the corporation pays a…
A: FIFO method is first in first out method where inventory bought first is sold first. LIFO method is…
Q: Net income was $430,000 in 2020, $421,400 in 2021, and $450,898 in 2022. What is the percentage of…
A: Net income is the difference between revenue and expense of the business. The changes in net income…
Q: Ma3. Assume that Nike decides to build a new warehouse complex at significant cost, financed with…
A: IN RESPONCE TO THE NIKE NEW WAREHOUSE PLANNING IMPACT OF GROSS MARGIN RATIO Gross margin offers…
Q: Assume a company has two divisions, Division A and Division B. Division A has provided the following…
A: Profit Profit is defined as the financial benefit realised when the revenue generated by a…
Q: The Owner's Capital has a beginning balance of P626,000. The owner gave P130,000 additional…
A: Balance sheet Liabilities Amount Asset Amount Account payable 57,000 Account receivable…
Q: VII. Polytech Inc. produces a laptop. The selling_price_per unit of the laptop is $500. Data for…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Mercedes is considering upgrading their existing manufacturing line with state-of-the-art robotics.…
A: The CCA is capital cost allowance is like depreciation. The machinery, building, furniture, etc.…
Q: Question 3: As at 31 May 20X1 and 31 May 20X2 Castle ple had the following summarised figures…
A: A cash flow statement is defined as one of the financial statements that shows the flow of cash…
Q: Use the following information to prepare the June cash budget for Vox Company. It should show…
A: MEANING OF CASH BUDGET A budget which shows the cash receipt and cash payment of each month and…
Q: Gryphon Corporation reported net income of $75,000 for the year. During the year, accounts…
A: Cash flows from operating activities: It is a section of the Statement of cash flow that explains…
Q: Metlock Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of…
A: Depreciation means the amount fixed assets written off due to normal wear and tear , normal usage ,…
Q: Assume that your hotel wants to have $1,000,000 in 12 years. Your hotel wants to start investing…
A: Time Value of Money :— According to this concept, value of money in present day is greater than the…
Q: Prepare a vertical analysis of the balance sheets for Year 4 and Year 3. (Percentages may not add…
A: Vertical analysis means the analysis which is done with the figures of one financial year. For…
Q: Depreciation is computed by the straight-line method with no salvage value. The company's cost of…
A: PAYBACK PERIOD Payback period is the most popular & widely Recognized traditional Method of…
Q: How would the entries in part (a) change if the securities were classified as available-for-sale? (C
A: 1. Sale value of investment in shares of platter Inc. = 5500 shares x $41 =$ 225500 2. Gain on sale…
Q: 3. Laura Company carried a provision of P2,000,000 in the draft financial statements on December 31,…
A: As per Indian Accounting Standard (Ind AS) 37 - Provisions, Contingent Liabilities and Contingent…
Q: T-Account Postings Amounts: Input Totals ($) Debits Total: 751,000 Credits Total: 751,000 Assets…
A: Net Income Before Tax, Income Tax and Net Income are items in income statement.
Q: During year 1, Yvo Corp. installed a production assembly line to manufacture furniture. In year 2,…
A: The expenditures are classified as revenue and capital expenditure. The revenue expenditures are…
Q: Sloan Corporation is considering new equipment. The equipment can be purchased from an overseas…
A: Differential analysis is the comparison between two options with respect to cost and revenue which…
Q: There are basic systems of cost accounting. What are the two basic systems of cost accounting, and…
A: The answer for the question on the basic systems of Cost Accounting is discussed hereunder : There…
Q: as het cash flows from operating activities of $425,000 and net cash flows used for investing…
A: Solution... Cash flow from operating activities = $425,000 Cash flow from investing activities…
Q: The Gear Division makes a part with the following characteristics: Production capacity 27,000 units…
A: Note: As per general rule, in the case of sufficient capacity available, the minimum transfer price…
Q: On July 1, 2025, Pronghorn Corporation purchased Young Company by paying $252,100 cash and issuing a…
A: Journal entry is the primary reporting of the business transactions in the books. These entries are…
Q: Cash Accounts Receivable Merchandise Inventory Plant Assets Accumulated Depreciation Total Assets…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: Which two steps in the accounting cycle are aided by the preparation of a worksheet? Posting journal…
A: The financial information of a business organisation is shown in financial statements. Income…
Q: The following data are taken from the financial statements of Sigmon Inc. Terms of all are 2/10,…
A: Accounts receivable turnover represents the efficiency of the entity in collecting its debts from…
Q: Roll Board Inc. manufactures several models of high-quality skateboards. The company’s ABC system…
A: Activity Based Costing :— In this approach, All manufacturing overhead cost considered as variable…
Q: Required information Miami Solar manufactures solar panels for industrial use. The company budgets…
A: In this question, we need to prepare direct materials budget for the month of July. As the required…
Q: Required information [The following information applies to the questions displayed below.] Sammy's…
A: The company cab declare dividend in the form. Of cash or stock dividend. The dividend is declared…
Q: ABC Company borrowed $100,000 at a 9% interest rate on May 1, 20X1 for one year with interest and…
A: Solution. Amount = $100,000 Rate of Interest = 9% Time period = 8 months (May to December)…
Q: In which department would an investigation of the materials price variance most likely begin?
A: When the actual price paid for materials used in manufacturing is different from the normal price…
Q: Service Department Graphics Production Accounting Personnel Cost $200,000 500,000 400,000 Direct…
A: Under Activity based costing method, the cost of each department is based on the consumption of that…
Q: Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods…
A: Lets understand the basics. Inventory turnover ratio indicates how entity is efficient to convert…
Q: Sam Smith is a citizen and bona fide resident of Great Britain (United Kingdom). During the current…
A: NOTE- IN THIS CASE WE HAVE SAM SMITH IS THE CITIZEN AND RESIDENT OF GREAT BRETAIN U.K. BUT THE…
Q: On May 3, Zirbal Corporation purchased 7,500 shares of its own stock for $67,500 cash. On November…
A: In this question, we need to pass journal entries on: Purchase of Treasury Stock on May 03. Re…
ANSWER 1, 2 AND 3
Step by step
Solved in 2 steps
- 6. There is no taxable income until such income is recognized. Taxable income is recognized when the (BEQ) a. taxpayer fails to include the income in his income tax retum. b. income has been actually received in money or its equivalent. income has been received, either actually or constructively. d. transaction that is the source of the income is consummated. CS Scanned with CamScannerWhich one of the following is not deductible when itemizing a, State income tax b, Real property tax c, Cigarette tax d, None of theseWhich of the following statements BEST describes an important tax planning opportunity with regard to loss carry overs? Question 5 options: As noncapital loss carry overs have an unlimited carry forward period, only net capital loss carry overs should be used to reduce Taxable Income to zero. As personal tax credits have an unlimited carry forward period, loss carryovers should be used to reduce Taxable Income to nil. Loss carry overs should not be used to reduce Taxable Income to zero as this prevents the application of personal tax credits. Loss carry overs should be used to reduce Taxable Income to zero so that personal tax credits can be applied to trigger a refund of taxes in the year.
- Which of the following is not tax exempt? A. Amount of any damages received by agreement on account of injuries sustained. B. Consequential damages representing the loss of the victim’s earning capacity awarded by the courts to the heirs of the victim. C. Award of compensatory, actual, moral, and exemplary damages. D. None of the above E. All of the aboveWhich of the folewing tax items is of most value in terms of lax savings to a taxpayer? Choose the correct answer. OA a $500 refundable credit against tax payable O B. a $500 non-capital loss carry forward OC a$500 non-refundable credit against lax payable D. a $500 deduction against net income for tax purposes14. If the taxpayer failed to pay the tax demanded per final assessment, the government may exercise several administrative remedies. Which of the following is not correct? Levy of real property of the taxpayer may be availed of only after distraint of personal property of taxpayer. Either distraint or levy may be pursued simultaneously once the assessment becomes final and demandable. If the tax assessed is P 100 and below, levy or distraint may not be availed of. The remedy of distraint of personal property may be repeated if necessary until the full amount due and all expenses are collected.
- Which is false? a. The estate tax is computed based on the net estate or taxable estate. b. The net estate is determined by subtracting from the gross estate the deductions authorized by law. C. Both a" and D d. Neither a" nor "b"19. The following are not taxable, except:* a. Refund of fringe benefit tax b. Refund of Philippine income tax c. Refund of estate or donor’s tax d. Refund of special assessment1.The definition of gross income in the tax law is: A. All items specifically listed as income in the tax law B. All cash payments received for goods provided and services performed C. All income from whatever source derived D. All income from whatever source derived unless the income is earned illegally 2.Which of the following is not taxable for income tax purposes? A.Prizes B.Severance pay C.Gifts D.Partnership income E.All of the above are taxable 3.All of the following items are taxable to the taxpayer receiving them, except: A.Life insurance proceeds B.Unemployment compensation C.Embezzled funds D.Prizes E.Gambling winnings
- 59 S1 - Estate tax is a tax on the transfer of estate upon death by the decedent to his beneficiaries. S2 - In all types of decedents, the basis of estate tax is net estate or net taxable estate. Group of answer choices Both are false S2 is true S1 is true Both are trueWhich of the following statements is incorrect with respect to determining E&P? All tax-exempt income should be added back to taxable income. Dividends received deductions should be added back to taxable income. Charitable contributions in excess of the 10% taxable income limit should be subtracted from taxable income. Federal income tax refunds should be added back to taxable income. None of the above statements are incorrect MY ANSWER: 5. None of the above. Reasoning: All the above statements are correct with regard to the calculation of current E&P. E&P is the ability of the company to pay dividends to its shareholders. Am I correct? If not, please explain. Thank you in advance!Which of the following is correct? a) An item of gross income that is subject to tax in one scheme will not be taxed by the other schemes. b) An item of income that is exempt from regular income taxation may be subject to capital gains taxation. c) In final income taxation, the taxpayer remits the tax to the government. d) All capital gains from capital assets are subject to capital gains tax.