Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Chapter 6, Problem 8MCQ
To determine
Introduction: Many times related taxpayers transact with each other, there is a possibility of tax abuse, to prevent this the tax laws have provisions to govern related-party transactions. For this, the related party transactions between related parties are restricted by section 267 of tax law.
To choose: The correct answer to determine the amount of deductions in 2020 tax return.
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14. Leslie Inc. has correctly determined the following information related to
operations for 2018:
Revenue from sales
Expenses
Income before income taxes
P7,000,000
4,000,000
P3,000,000
In reviewing the records, you discovered the following items:
During 2018, the company discovered an error in depreciation in 2017. The
correction of this error, which has not been recorded, will result in an increase
in depreciation for 2017 of P200,000.
During 2018, the company sustained a loss of P400,000 because of flood,
which destroyed its inventory. The company charged retained earnings and
credited inventory for P400,000.
How much is the total income tax expense for the year 2022?
A. 1,381,200
B. 1,350,000
C. 1,051,200
D.1,216,200
Red Velvet Corporation, a domestic corporation has the following data.
2021
2022
Gross Income
3,500,000.00
2,400,000.00
Taxable Income
125,000.00
500,000.00
The income tax payable for 2021 is
31,250
40,000
35,000
37,500
Chapter 6 Solutions
Income Tax Fundamentals 2020
Ch. 6 - E Corporation is a subchapter S corporation owned...Ch. 6 - Income and loss from which of the following...Ch. 6 - Which of the following entities is likely to have...Ch. 6 - Which of the following is an acceptable method of...Ch. 6 - Which of the following entities is required to...Ch. 6 - Prob. 6MCQCh. 6 - B Corporation, a calendar year-end, accrual basis...Ch. 6 - Prob. 8MCQCh. 6 - Prob. 9MCQCh. 6 - Prob. 10MCQ
Ch. 6 - Prob. 11MCQCh. 6 - Prob. 12MCQCh. 6 - For 2019, Roberta is a self-employed truck driver...Ch. 6 - Prob. 14MCQCh. 6 - Prob. 15MCQCh. 6 - Which of the following employees would not be...Ch. 6 - Prob. 17MCQCh. 6 - Prob. 18MCQCh. 6 - Prob. 19MCQCh. 6 - Christine and Doug are married. In 2019, Christine...Ch. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Geraldine is an accrual basis taxpayer who has the...Ch. 6 - Prob. 4PCh. 6 - Prob. 5PCh. 6 - Prob. 7PCh. 6 - Prob. 8PCh. 6 - Refer to the previous problem 8. If Stan's parents...Ch. 6 - Prob. 10PCh. 6 - Prob. 11PCh. 6 - Otto and Monica are married taxpayers who file a...Ch. 6 - Prob. 13PCh. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Sally hires a maid to work in her home for $280...Ch. 6 - Prob. 18PCh. 6 - Rachel is single and has wages of $150,000 and...Ch. 6 - Married taxpayers Otto and Ruth are both...
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- ! Required information Problem 7-45 (LO 7-2) (Algo) [The following information applies to the questions displayed below.] Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $69,600. Meg works part time at the same university. She earns $33,800 a year. The couple does not itemize deductions. Other than salary, the Comers' only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules, Dividends and Capital Gains Tax Rates.) Note: Round your final answers to the nearest whole dollar amount. Problem 7-45 Part-a (Algo) a. What is the Comers' tax liability for 2022 if they report the following capital gains and losses for the year? $ 9,800 (2,400) Short-term capital gains Short-term capital losses Long-term capital gains Long-term capital losses 15,800 (6,400) Total tax liabilityarrow_forwardHow about if the question is How much is the income tax payable assuming the taxable year is 2021? a. 330,000 b. 775,000 c. 800,000 d. 3,180,000arrow_forward1. Use the following information to answer the following questions: Taxable income Tax rate $ 0 – $ 50,000 15% $ 50,001 – $ 75,000 25% $ 75,001 – $100,000 34% $ 100,001 – $335,000 39% $ 335,001 – $10.000 million 34% $10,000,001 – $15.000 million 35% $15,000,001 – $18.333 million 38% $18,333,334 and above 35% A. If a firm has taxable income of $16.2 million, its marginal tax rate is . B. If a firm has taxable income of $16.2 million, its average tax rate is _____.arrow_forward
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