CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN: 9780357110362
Author: Murphy
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 52P
a.
To determine
Classify the given income as ordinary income, a gain or an exclusion.
b.
To determine
Classify the given income as ordinary income, a gain or an exclusion.
.
c.
To determine
Classify the given income as ordinary income, a gain or an exclusion.
d.
To determine
Classify the given income as ordinary income, a gain or an exclusion.
e.
To determine
Classify the given income as ordinary income, a gain or an exclusion.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Assuming that Mimaropa is a corporate taxpayer, compute the taxable income.
Mr. Mimaropa reported the following data in 2021.
Sales
Cost of Sales
Gain on Sale of Equipment
Interest Income from Bank Deposits
Deductible Expenses
Non-deductible Expenses
Your answer
P 1,000,000
600,000
60,000
40,000
300,000
200,000
m
B5.
Don Ho has the following sources of income and deductions:
Net employment income 34,000
Property income 6,000
Business loss 54,000
Taxable capital gain 4,000
Allowable capital loss 7,000
What is Don’s Net Income or Loss (Division B Income)?
A. $40,000 Income
B. $44,000 Income
C. $17,000 Loss
D. Nil
A 5
Explain the tax treatment for the following transactions under article (9) of the income tax law
Tax payer has personal asset valued at SAR 100,000 a cost base of SAR 80,000. Earning gains of SAR 20,000. What is the gain or loss on the disposed asset?
Answer:
.
2.Tax payer has an asset of two components and he disposed one component for SAR 50,000 Cash. The tax payer purchased that asset for SAR 100,000 Cash 5 years ago. The expert valued that assets at the time of purchase for SAR 200,000 out of which SAR 70,000 was belong to the disposed component. What is the gain or loss on the disposed asset?
Answer:
3.Tax payer possess land with book value of SAR 100,000 and he paid SAR 20,000 Cash to improve the land. Are expenses deductible?
Answer:
Chapter 1 Solutions
CONCEPTS IN FED.TAX.,2020-W/ACCESS
Ch. 1 - Briefly state Adam Smiths four requirements for a...Ch. 1 - Based on the discussion in the chapter, evaluate...Ch. 1 - Prob. 3DQCh. 1 - Based solely on the definitions in the chapter, is...Ch. 1 - As stated in the text, the federal income tax is...Ch. 1 - How are federal, state, and local income taxes...Ch. 1 - How is a sales tax different from an excise tax?Ch. 1 - Who is responsible for collecting sales and excise...Ch. 1 - Prob. 9DQCh. 1 - Prob. 10DQ
Ch. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - Prob. 13DQCh. 1 - LO3 Identify three primary sources of tax law.Ch. 1 - Explain why the following statement is not...Ch. 1 - What is the federal income tax base?Ch. 1 - Prob. 17DQCh. 1 - Prob. 18DQCh. 1 - How is gross income different from income?Ch. 1 - LO4 What are the three basic tests that an expense...Ch. 1 - Prob. 21DQCh. 1 - LO4 How is a transaction loss different from an...Ch. 1 - How does the legislative grace concept help...Ch. 1 - Prob. 24DQCh. 1 - Explain the pay-as-you-go system.Ch. 1 - Prob. 26DQCh. 1 - Prob. 27DQCh. 1 - Prob. 28DQCh. 1 - Prob. 29DQCh. 1 - Prob. 30DQCh. 1 - What are the three types of IRS examinations?Ch. 1 - Prob. 32DQCh. 1 - Prob. 33DQCh. 1 - Prob. 34DQCh. 1 - Prob. 35DQCh. 1 - Prob. 36DQCh. 1 - Prob. 37DQCh. 1 - LO7 Evaluate the following statement: The goal of...Ch. 1 - It has often been said that only the rich can...Ch. 1 - Prob. 40PCh. 1 - Prob. 41PCh. 1 - Prob. 42PCh. 1 - Prob. 43PCh. 1 - Prob. 44PCh. 1 - Prob. 45PCh. 1 - Prob. 46PCh. 1 - LO2 Joe Bob is an employee of Rollo Corporation...Ch. 1 - Prob. 48PCh. 1 - LO2 Gosney Corporation has two employees. During...Ch. 1 - Prob. 50PCh. 1 - Darrell is an employee of Whitneys. During the...Ch. 1 - Prob. 52PCh. 1 - Prob. 53PCh. 1 - LO4 Explain why each of the following expenditures...Ch. 1 - Prob. 55PCh. 1 - Prob. 56PCh. 1 - Prob. 57PCh. 1 - Prob. 58PCh. 1 - Prob. 59PCh. 1 - Michiko and Saul are planning to attend the same...Ch. 1 - Inga, an attorney, completed a job for a client in...Ch. 1 - Prob. 62PCh. 1 - Prob. 63PCh. 1 - Leroy and Amanda are married and have three...Ch. 1 - Prob. 65PCh. 1 - Prob. 66PCh. 1 - Prob. 67IIPCh. 1 - Prob. 68IIPCh. 1 - Prob. 69IIPCh. 1 - Prob. 70IIPCh. 1 - Prob. 73TACh. 1 - Prob. 74TACh. 1 - Prob. 75TACh. 1 - Prob. 76DCCh. 1 - Prob. 77DCCh. 1 - Bonnie is married and has one child. She owns...Ch. 1 - Prob. 79EDC
Knowledge Booster
Similar questions
- How much of the following is gross income subject to income tax? * Description Amount Cancellation of indebtedness for services rendered Actual damages for cost of inventories lost Inheritance Gain on illegal business Gain on gambling activities Gain on "5-6"lending activities Gain on sale of laptop previously used for non- business activities P30,000 500,000 200,000 700,000 560,000 400,000 20,000 P2,410,000 P2,210,000 P2,160,000 P1,710,000 P450,000arrow_forward1 Suppose the taxpayer received S35,000 in cash, a ring worth $3,000 and the buyer assumed the seller's note. a. What is the amount realized? b. What is the adjusted basis of the property? c. What is the gain on the sale of the property?arrow_forward1. Allowable deductions generally refer to amounts that are subtracted directly from one's total tax liability. 2. Deductions which constitute bribe, kickback, and other similar payment made to an official or employee of the national, local or foreign government or similar entities, being against law and public policy are not deductible from gross income. A= 1st statement is true, second statement is false. B= 1st statement is false, second statement is true. C= Both statements are false. D- Both statement are true. O A OD OB O Carrow_forward
- Find the possible over/understatement of taxable income given the following: Taxable income per tax return $60,000 Increase in mortgage payable $150,000 Increase (purchase) in real estate $700,000 Increase in cash on hand $30,000 Decrease in bank balance $10,000 Gift received $15,000 Personal living expenses $25,000 Income taxes paid $17,000 Increase in accounts receivable $220,000 Decrease in securities $35,000 Tax exempt interest received $1,000 Gifts made (paid) $8,000 Increase in inventory $5,000 Itemized deductions $28,000 Inheritance received $9,000 Show your complete computations in a schedule showing sources and uses of funds as shown in Figure 6.3 in your textbook (Source and Application of Funds Format).arrow_forwardJ6. Which of the following statements is correct regarding rental properties? A. Each rental property purchased that cost $50,000 or more must be placed in a separate CCA class. B. Rental losses from CCA can be used to shield income from employment or from business. C. A corporation whose principle business is property rental or leasing cannot create a loss by CCA. D. CCA deductions can create or increase a net loss from all of a taxpayer’s rental properties combined.arrow_forward4. During the year Jungkook had employment income of $30,000, property income of $1,000, a business loss of $2,000, income from an RRSP withdrawal of $2,000, and a capital gain of $30,000 on the sale of shares in a small business corporation. How much is Jungkook's net income for tax purposes in accordance with Section 3 of the Income Tax Act? S.3(a) Employment Property Other - RRSP S.3(b) S.3(c) S.3(d) Business loss Net Income for Tax Purposes: $30,000 1,000 2,000 15,000 -2,000 $46,000arrow_forward
- The definition of gross income in the tax law is: All items specifically listed as income in the tax law All cash payments received for goods provided and services performed All income from whatever source derived All income from whatever source derived unless the income is earned illegallyarrow_forwardI. Final Income taxation is characterized by: 1. Full taxes are withheld by the income payor at source. 2. Recipient receives the income net of tax 3. Payor is the one required by law to remit the tax to government 4. Recipient need not file an income tax return 5. Tax withheld constitutes full tax due and deemed final payments EXAMPLE: Mr. C is a depositor of W bank and earns an interest income of P8,000 in a 6-month time deposit on year 2020. This interest income is subject to 20% final tax or P1,600. Requirements: Discuss final income tax using the names and amounts given. For example, In final income taxation, Mr. receives the income of P6,400 net of tax.arrow_forwardAccounting 1. Sally has the following for 2021: a $12,000 § 1245 gain a $38,000 § 1231 gain a $36,000 § 1231 loss a $2,000 § 1231 lookback loss a $18,000 long-term capital gain a $3,500 long-term capital loss. a. Determine her ordinary gain or loss amount for 2021. Enter an absolute amount. b. Determine her LTCG or LTCL amount for 2021. Enter an absolute amount. 23. Molly exchanges a rental building, which has an adjusted basis of $625,000, and FMV of $715,000 for another rental house which has a fair market value of $565,000. She also receives $150,000 in cash. What is the recognized gain or loss the new rental house?arrow_forward
- Problem 10-37 (Algorithmic) (LO. 6, 7, 8, 9, 10, 11) Amy and Mitchell share equally (50%) in the profits, losses, and capital of the accrual basis AM Products LLC. Amy is a managing member of the LLC (treated as a general partner) and is a U.S. person. At the beginning of the current tax year, Amy's tax basis capital account has a balance of $736,000, and the LLC has debts of $478,400 payable to unrelated parties. All debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. The following information about AM's operations for the current year is obtained from the LLC's records. Operating income W-2 wages Depreciation expense Interest income Long-term capital loss Long-term capital gain Charitable contribution (cash) Cash distribution to Amy Unadjusted basis of partnership property immediately after acquisition $1,104,000 200,000 300,000 11,040 7,360 22,080 11,090 55,200 1,600,000 Operating income equals revenue less operating expenses (other than…arrow_forward1.Whatare the conditions under Income Tax Act, ACT 896 forexpenditure to be allowed as a deduction when computingbusiness, employment or investment income?2.List5 allowable deductions from the assessable income3.Assumethat the written down value of assets in the pool 2 isGH 100 000 and the repairs and improvements is GH 20 000What will be the tax allowable expenses?4.Giventhat the assessable income for the company isGH 140 000 the finance cost is GH 90 000 and there is nocorresponding finance gain, what is the allowable expense?arrow_forward11. A taxpayer made available the following financial information: Gross sales - Php 10,000,000 Cost of sales – Php 6,000,000 Expenses: Salaries and wages – Php 1,000,000 Transportation and travel – Php 20,000 Rental - Php 240,000 Representation expense – Php 200,000 Depreciation expense – Php 200,000 Office supplies – Php 20,000 Miscellaneous expenses – Php 10,000 How much is the taxable income if the taxpayer is a domestic corporation and opted for OSD? Group of answer choices Php 0 Php 4,000,000 Php 2,400,000 Php 6,000,000arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT