income tax due
Q: Covid Private School (CPS) is a non-profit private educational institution with an issued permit to…
A: The income on which the individual or the other taxpayer is required to pay taxes is described as…
Q: The following information relates to Problems 48 through 53: For a number of years, a private…
A: Assets: These are the resources owned and controlled by business and used to produce benefits for…
Q: The following information relates to Problems 48 through 53: For a number of years, a private…
A: 1. The correct amount of unrestricted net assets at the end of the year 2 is $400,000.
Q: The following information relates to Problems 48 through 53: For a number of years, a private…
A: 1. Following are the correct amount of unrestricted net assets at the end of the year: In the…
Q: Required: 1. Determine the amounts necessary to record income taxes for 2021, and prepare the…
A: Journal entries refers to the official book of a firm/company which is used to record the day to day…
Q: For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting income of…
A: Income tax payable is an obligation by the tax payer to the government on the taxable income.
Q: For a number of years, a private not-for-profit entity has been preparing financial statements that…
A: GAAP Apply to Nonprofit Organizations , Accounting Standards Codification generally applies to…
Q: The statement of financial position of Washbud Private University as of the end of its fiscal year,…
A:
Q: The following information relates to Problems 48 through 53: For a number of years, a private…
A: Answer 1: Unrestricted net assets are those assets and donations which are not donated with any…
Q: [The following information applies to the questions displayed below.] For a number of years, a…
A: Private not for profit organization It is the private foundation which is engaged in social or…
Q: Compute the total deductible additional compensation expense. 6. An individual taxpayer, reported…
A: As per our protocol we provide solution to the one question only but you have asked multiple…
Q: XYZ is a calendar-year corporation that began business on January 1, 2021. For the year, it reported…
A: Computation of XYZ taxable income: Sales adjustment taxable income Sales 40,400,000 - COGS…
Q: For a number of years, a private not-for-profit entity has been preparing financial statements that…
A: The correct amount of unrestricted net assets at the end of the year 2 is $400,000. The correct…
Q: In the current year, Great Lakes Corporation, a calendar year C corporation, has $4,540,000 of…
A: Adjusted gross income It is the gross income after deducing specific deductions and is used to…
Q: How much is the income tax payable?
A: Tax payable is the outstanding amount of tax which has not yet paid to the government by the…
Q: A nongovernmental, not-for-profit had the following selected account balances on December 31, 2020…
A: Net Assets:-It is calculated by subtracting Company's liabilities from companies total assets, the…
Q: Candlewood LLC began its business on July 1, 2020; and it uses a calendar tax and an accounting…
A: a). Oraganizational expense =5474 b)Startup expense = 2283
Q: Alpha Hospital, a nongovernmental not-for-profit organization, has adopted an accounting policy that…
A: Not-for-profit organization: Not-for-profit organization provides services to society/community with…
Q: For a number of years, a private not-for-profit entity has been preparing financial statements that…
A: a. What was the correct amount of unrestricted net assets at the end of the year Unrestricted net…
Q: For calendar year January to December 2020, A duly accredited private educational institution with…
A: The answer is stated below: Note: Answering the first question as there are multiple…
Q: Exile Corporation has operating income of $42,000 and operating expenses of $69,000 in 2021. In…
A: Form 1120 is a form used to disclose income, gains, expenses and losses of a corporation, which in…
Q: Tired Company, a domestic corporation, started operations in the latter part of the first quarter of…
A: Deferred tax liability will be created on temporary difference arises due to difference in…
Q: a.) In January 2021, NBDB incurred the following expenses for the salaries of its regular employees…
A:
Q: Covid Private School (CPS) is a non-profit private educational institution with an issued permit to…
A: Introduction: The income on which the individual or the other taxpayer is required to pay taxes is…
Q: Fish, Inc., an exempt organization, reports unrelated business income of $500,000 (before any…
A: UBTI stands for Unrelated business taxable income which is defined as the income generated regularly…
Q: 014, PEACE COMPANY received interest income of 100,000 on government obligations and P600,000 in…
A: Deferred Tax : It is the difference of Book accounting income and taxable income of the year. If…
Q: In 2021, LAA Incorporated made a charitable donation of $151,500 to the American Red Cross. For the…
A: The charitable contribution deduction for the year is restricted to a maximum of = 10 percent of…
Q: In 2014, PEACE COMPANY received interest income of 100,000 on government obligations and P600,000 in…
A: ANSWER A DEFERRED TAX ASSET IS AN ASSET WHICH ARISE TO THE COMPANY WHEN THE COMPANY HAS OVERPAID…
Q: A state corp, all of whose business os done within the city, showed the following for 2018: Entire…
A: Introduction Corporate income tax depends most common federal taxable income generally ranging from…
Q: The following items of gross income are exempted from taxation, except: A.Revenues of a non-stock…
A: Analysis of Option Option A: Incorrect Reason: Non profit organisation: These are the…
Q: 2. Mr Asta, domestic corporation, revealed the following data for 2019: Gross income from business…
A: Taxable income: taxable income is a part of company or individual's income, on which tax calculated…
Q: 57. Augustinian University (AU) is a non-profit private educational institution with an issued…
A: Introduction: Income tax payable refers to a company's tax due to the government in the region in…
Q: In 2014, PEACE COMPANY received interest income of 100,000 on government obligations and P600,000 in…
A: Sometimes there is difference in net income calculated in financial statements and taxable income of…
Q: What amount will be disclosed on the company's notes to financial statements?
A: The determination of amount to be disclosed on the company's notes to financial statements is shown…
Q: Interest income on municipal governmental bonds $ 92,000 Depreciation claimed on the 2021 tax return…
A: Tax is an amount that is charged by the government from the individual and organization on the…
Q: The following information relates to Problems 48 through 53: For a number of years, a private…
A: Definition: Financial statements: Financial statements are condensed summary of transactions…
Q: For a number of years, a private not-for-profit entity has been preparing financial statements that…
A: The correct amount of unrestricted net assets at the end of year 2 is $445,000 ($400,000 + $50,000 -…
Q: Santo Cristo Institute of Engineering and Accountancy (SCIEA), is an educational institution…
A: According to relevant tax legislation, non-profit private educational institutions and hospitals are…
Q: The following information relates to Problems 48 through 53: For a number of years, a private…
A: The correct amount of unrestricted net assets at the end of year 2 is $445,000 ($400,000 + $50,000 -…
Q: Beech Corporation, an accrual basis calendar year taxpayer, was organized and began business on July…
A: Calculate organizational expenses: Total organizational expense=State fees for incorporation+Leagal…
Q: Lakeview, a calendar year C corporation, reports the following income and expenses in the current…
A: The itemized deduction is the amount that is available in the United States federal taxes as the…
Q: Ottawa Corporation has accounting income for the year ended October 31, 2020 of $76,000. Included in…
A: Taxable income is the amount of income computed to measure the amount of taxes to be paid to the…
Q: Pioneer College, a private educational institution, has presented the following data for the year:…
A: Here discuss about the income tax payable for education institution which are treated as corporate…
Q: On January 1, 2020, Humility Company received a government grant of P60,000,000 to compensate for…
A: In accordance with PAS 20 "The grant is recognized as income over the period by matching them with…
Q: Advanced Learning Institute, an educational institution, provided the following data for the current…
A: Advanced Learning Institute's Income from tuition fees = P3500000 School miscellaneous fees =…
Covid Private School (CPS) is a non-profit private educational institution
with an issued permit to operate from the Commission on Higher
Education (CHED). CPS uses a fiscal year accounting ending July 31st of
each year. On July 31, 2021, it recorded total gross receipts amounting to
P18,000,000.00, of which P10,000,000.00 came from education-related
activities, while P8,000,000.00 from other unrelated business activities.
Also, CPS recorded cost of service and operating expenses from related
activities amounting to P2,000,000.00 and P1,000,000,00, respectively,
and from unrelated business activities amounting to P3,000,000.00 and
P2,000,000.00, respectively.
REQUIRED:
1. In case the Corporation in the above problem is a REGULAR Domestic
Corporation, how much is its taxable income?
2. In case the Corporation in the above problem is a REGULAR Domestic
Corporation, how much is its income tax due if it has celebrated its 2nd yr
in 2021?
Step by step
Solved in 2 steps
- Covid Private School (CPS) is a non-profit private educationalinstitution with an issued permit to operate from the Commission onHigher Education (CHED). CPS uses a fiscal year accounting ending July31st of each year. On July 31, 2021, it recorded total gross receiptsamounting to P18,000,000.00, of which P10,000,000.00 came fromeducation-related activities, while P8,000,000.00 from other unrelatedbusiness activities. Also, CPS recorded cost of service and operatingexpenses from related activities amounting to P2,000,000.00 andP1,000,000,00, respectively, and from unrelated business activitiesamounting to P3,000,000.00 and P2,000,000.00, respectively. Required: 1. How much is the taxable income of CPS? 2. How much is the tax due of CPS?Augustinian University (AU) is a non-profit private educational institution with an issued permit to operate from the Commission on Higher Education (CHED). It is maintained and administered by MCGJ Inc., a private domestic corporation registered under the Securities and Exchange Commission. AU uses a fiscal year accounting ending July 31st of each year. On July 31, 2021, it recorded total gross receipts amounting to P18,000,000.00, of which P8,000,000.00 came from education-related activities, while P9,500,000.00 (net of 5% creditable withholding tax) from other unrelated business activities (rent income from commercial spaces). Also, AU recorded cost of service and operating expenses from related activities amounting to P3,000,000.00 and P1,000,000.00, respectively, and from unrelated business activities amounting to P2,000,000.00 and P2,000,000.00, respectively. How much is the income tax payable? a. 2,000,000 c. 2,500,000 b. 1,500,000 a. 100,000The University of Danville is a private not-for-profit university that starts the current year with $700,000 in net assets: $400,000 unrestricted, $200,000 temporarily restricted, and $100,000 permanently restricted. The following transactions occur during the year.Prepare journal entries for each transaction. Then determine the end-of-year balances for unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets by creating a statement of activities.a. Charged students $1.2 million in tuition.b. Received a donation of investments that had cost the owner $100,000 but was worth $300,000 at the time of the gift. According to the gift’s terms, the university must hold the investments forever but can spend the dividends for any purpose. Any changes in the value of these securities must be held forever and cannot be spent.c. Received a cash donation of $700,000 that must be used to acquire laboratory equipment.d. Gave scholarships in the amount of…
- The University of Danville is a private not-for-profit university that starts the current year with $700,000 in net assets: $400,000 unrestricted, $200,000 temporarily restricted, and $100,000 permanently restricted. The following transactions occur during the year. Prepare journal entries for each transaction. Then determine the end-of-year balances for unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets by creating a statement of activities. Charged students $1.2 million in tuition. Received a donation of investments that had cost the owner $100,000 but was worth $300,000 at the time of the gift. According to the gift’s terms, the university must hold the investments forever but can spend the dividends for any purpose. Any changes in the value of these securities must be held forever and cannot be spent. Received a cash donation of $700,000 that must be used to acquire laboratory equipment. Gave scholarships in the amount of $100,000 to…57. Augustinian University (AU) is a non-profit private educational institution with an issued permit to operate from the Commission on Higher Education (CHED). It is maintained and administered by MCGJ Inc., a private domestic corporation registered under the Securities and Exchange Commission. AU uses a fiscal year accounting ending July 31st of each year. On July 31, 2021, it recorded total gross receipts amounting to P18,000,000.00, of which P8,000,000.00 came from education-related activities, while P9,500,000.00 (net of 5% creditable withholding tax) from other unrelated business activities (rent income from commercial spaces). Also, AU recorded cost of service and operating expenses from related activities amounting to P3,000,000.00 and P1,000,000.00, respectively, and from unrelated business activities amounting to P2,000,000.00 and P2,000,000.00, respectively. How much is the income tax payable?Tesla State University is a public university. Assume deferred revenues as of July 1, 2022 are in the amount of $3,500,000. Record appropriate transactions for the year ended June 30, 2023. Properly classify the revenue transactions in your answers (operating revenues, nonoperating revenues, etc.): 1. Deferred revenues were earned prior to December 2022. 2. During the fiscal year ended June 30, 2023, student tuition and fees were assessed in the amount of $68,000,000. OF that amount, $52,000,000 was collected in cash. Also, of that amount, $2,400,000 pertained to that portion of the 2023 summer session that took place after June 30, 2023. 3. Student scholarships amounted to $2,500,000. No services were required of the students. 4. Student assistantships and work-study stipends amounted to $2,000,000. 5. Auxiliary enterprise revenues amounted to $10,500,000. 3. The state appropriation for operations was received in the amount of $43,000,000. Pell Grants in the amount of $ 18,000,000…
- A private educational institution has presented the following data for the 2020 taxable year: Gross income, related P5,000,000 activities Gross income, unrelated activities 5,000,000 (except rental income) Rental income from commercial spaces 2,000,000 (gross of 5% WT) Expenses, related 2,000,000 activities Expenses, unrelated 3,000,000 activities Dividend income from a domestic 100,000 corporation Quarterly income tax paid for the first 3 400,000 quarters Determine the correct amount of income tax payable.Norte De University, a proprietary educational institution, has the following selected information for the taxable year 2X18: Tuition Fees P 12,800,000 Miscellaneous Fees 1,800,000 Interest on Bank Deposits 12,300 Rent Income 350,000 Salaries and Bonuses, all personnel 7,500,000 Other Operating Expenses 3,500,000 Quarterly Income Tax Payments 48,000 An additional school building was built and finished on April 1, 2X18 at the cost of P2,000,000 with a depreciable life of 50 years. Compute the income tax payable assuming the university opted to claim the cost of construction as an outright Compute the income tax payable assuming the university opted to capitalize the cost of building A non-profit domestic hospital has the following data during the year 2x18: Gross income from hospital operation P2,000,000 Operating Expenses (excluding depreciation for the new hospital building) 500,000 Rent income of commercial…INVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31, 2023, the following transactions occurred. A business donated rent-free office space to the organization that would normally rent for $35,300 a year. A fund drive raised $186,500 in cash and $103,000 in pledges that will be paid next year. A state government grant of $153,000 was received for program operating costs related to public health education. Salaries and fringe benefits paid during the year amounted to $208,860. At year-end, an additional $16,300 of salaries and fringe benefits were accrued. A donor pledged $103,000 for construction of a new building, payable over five fiscal years, commencing in 2025. The discounted value of the pledge is expected to be $94,560. Office equipment was purchased for $12,300. The useful life of the equipment is estimated to be five years. Office furniture with a fair value of $9,900 was donated by a local office supply…
- Norte De University, a proprietary educational institution, has the following selected information for the taxable year 2X18: Tuition Fees P 12,800,000 Miscellaneous Fees 1,800,000 Interest on Bank Deposits 12,300 Rent Income 350,000 Salaries and Bonuses, all personnel 7,500,000 Other Operating Expenses 3,500,000 Quarterly Income Tax Payments 48,000 An additional school building was built and finished on April 1, 2X18 at the cost of P2,000,000 with a depreciable life of 50 years. Compute the income tax payable assuming the university opted to claim the cost of construction as an outright Compute the income tax payable assuming the university opted to capitalize the cost of building construction.Palestine College, a not-for-profit institution, engaged in the following transactions during its fiscal year ending June 30, 2018. Prepare appropriate journal entries, indicating the net asset category affected (with donor restrictions or without donor restrictions). 1. The college collected student tuition $8 million as follows: $1,500,000 was applicable to the Summer Semester, which ran from June 1 to August 30, and the rest was applicable to the coming Fall Semester (September-December). 2. Using funds restricted for this purpose, the college purchased $300,000 of equipment for their movie theater. The college charged depreciation of $30,000. 3. The annual alumni campaign yielded $2,800,000 in pledges. The college estimated that 2 percent would be uncollectible. During the year the college collected $2,400,000 on the pledges.INVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31, 2023, the following transactions occurred. A business donated rent-free office space to the organization that would normally rent for $35,000 a year. A fund drive raised $185,000 in cash and $100,000 in pledges that will be paid next year. A state government grant of $150,000 was received for program operating costs related to public health education. Salaries and fringe benefits paid during the year amounted to $208,560. At year-end, an additional $16,000 of salaries and fringe benefits were accrued. A donor pledged $100,000 for construction of a new building, payable over five fiscal years, commencing in 2025. The discounted value of the pledge is expected to be $94,260. Office equipment was purchased for $12,000. The useful life of the equipment is estimated to be five years. Office furniture with a fair value of $9,600 was donated by a local office supply…