On March 1, 2017 Amelia, a non-resident citizen, opened a 5-yr timedeposit with her local bank. Theamount of deposit is P600,000 at 6%annual interest credited everycalendar year's end. Needing money,she pre-terminated the account onJune 1, 2021. How much final tax iswithheld by the bank at pre-termination? *a. Zerob. P750С. Р3,000O d. P7,650

Withheld Taxes for Pre Termination of Interest Income According to Philippines taxation (Internal…

Answered: June 1, 2021. How much final tax is…

Business

Accounting

June 1, 2021. How much final tax is withheld by the bank at pre- termination? * a. Zero

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 10DQ

See similar textbooks

Related questions

Q: On January 2, 2021, Quezon, Inc. placed P1M in the 5-year time depositof Bank of Laguna. The…

A: Tax is the amount which an individual or business is liable to pay the government for business…

Q: At December 31, 2020, Crane Corporation owes $ 514,900 on a note payable due February 15, 2021. (a)

A: A current liability is a debt that must be paid up either this year or next year, whichever comes…

Q: 21, Quezon, Inc. placed P1M in the 5-year time deposit of Bank of Laguna. The placement earns 10%…

A: Tax refers to the mandatory percentile charges levied by the government over the earnings gained by…

Q: Gilpin, Inc.'s payroll for November 2020 is summarized as follows: Amount of Wages Subject…

A: Payroll Taxes of Employer The employer is liable to pay for FICA taxes ( social security &…

Q: In 2021, the company accrued wages payable $68,000 and will make the payment in 2022. Taxable…

A: Adjusted taxable income=Taxable income-Accrued wages=$600,000-$68,000=$532,000

Q: The payroll of Buffalo Company for September 2019 is as follows. Total payroll was $468,000, of…

A: Debit the salary, salary and company payroll taxes you paid. This will increase your expenses for…

Q: The following data pertain to a taxpayer’s request for refund: Date tax erroneously paid, January…

Q: consider the following accounts and determine if the account is a current liability, a noncurrent…

A: The balance sheet is the statement of financial position of the business.

Q: Ingersoll Rand, organized on January 2, 2021, had pretax accounting income of $6,300,000 and taxable…

A: In this question, we have to pass the journal entry related to provisions for tax in the year 2019,…

Q: Eaton Enterprises uses the wage-bracket method to determine federal income tax withholding on its…

A: In the question, it is mentioned, we will compute the standard amount to be withheld using Forms W-4…

Q: Required: a) What is the closing balance of the franking account on 30 June 2019? 5) What are the…

A: The type of ledger account or statement which records only the amount related to tax is known as…

Q: Gore Company, organized on January 2, 2021, had pretax accounting income of $6,200,000 and taxable…

A: Journal entries refers to the systematic documentation of the financial transactions of the company…

Q: In 2019, household employees are not required to pay FICA taxes on cash payments of less than $2,100…

A: Tax: Tax refers to a compulsory payment or a contribution to the state revenue, levied by the…

Q: Joe Bob is an employee of Rollo Corporation who receives a 2020 salary of $14,000 per month. How…

A: Social security taxes are one of the federal taxes that is being payable by the individual to the…

Q: A C corporation has a fiscal year-end of August 30. It requests an automatic extension of time to…

A: C corporation include those corporations who taxed separately and need to pay their taxes at…

Q: PAYROLL LIABILITY: On 15 September 2020, Speedy directly transferred $30,000 to employees’ bank…

A: Payroll transaction is journalized by debiting the total salaries expense and crediting the amount…

Q: Rich Goma Corporation failed to file its income tax return for the fiscal year ending August 31,…

A: In Philippines interest for late filing of income tax return is levy at 12% per year from the date…

Q: Final Income taxation is characterized by: Full taxes are withheld by the income payor at source.…

A: Here discuss about the final withhold taxes which are incurred for the certain income payments which…

Q: Pearl Hardware payroll for November 2020 is summarized below. Amount Subject to Payroll…

A: The following calculations represent the schedule of the total cost of wages of the employer:

Q: Allmond Corporation, organized on January 3, 2021, had pretax accounting income of $16 million and…

A: Part 1:

Q: The payroll of Sandhill Company for September 2019 is as follows. Total payroll was $508,000, of…

Q: At December 31, 2020, Appaloosa Corporation had a deferred tax liability of $25,000. At December 31,…

A: Income Tax:Income earned by a taxable person during a financial year is subject to income tax, and…

Q: In January, the payroll supervisor determines that gross earnings for Sandhill Company are $108,000.…

A: Social Security tax = Gross Earnings x Social Security tax rate = $108000*6.20% = $6,696 Medicare…

Q: TRUE OR FALSE?

A: TRUE

Q: Assume that the company is subject to a two percent state unemployment tax (due to a favorable…

A: Journal entries are the entries to be recorded for all the business transactions in the accounting…

Q: 1-a. Determine the effect of 2019 errors on retained earnings at January 1, 2021, before any…

Q: Vulcan Company is a monthly depositor whose tax liability for March 20- is $2,505. 1. What is the…

A: As per IRC 6656, if penalties are not deposited in a timely manner or the deposits are made for less…

Q: Which of the following statements is/are correct? A. A minimum corporate income tax (MCIT) of 1% of…

A: Gross Pay- Gross pay is the total amount paid to employees by an employer before any deductions. In…

Q: Nizwa Steels LLC received an assessment order (AO) from the income tax authority on 1st August 2020.…

A: Tax is defined as the financial charge that is compulsory for every individual as it is imposed…

Q: The payroll of Sheridan Company for September 2019 is as follows.Total payroll was $492,000, of…

A: Payroll Accounting:The process of payroll accounting includes the computation and payment of…

Q: Question 12: In general, when the number of withholding allowances increases for an employee who has…

A: For employees, withholding is the amount of federal income tax withheld from your paycheck. The…

Q: Describe the advantages and disdvantages of the payroll tax deferral. Explain what is positive or…

A: Payroll taxes are shared by the employer and employee, each paying 6.2% of wages along with a 1.45%…

Q: At the end of 2019, ABC has a balance in accounts receivable of $250,500. Of this amount, it is…

A: Given that the balance in accounts receivable of $250,500 Accounts receivable which are proved…

Q: Indicate the date that the statute of limitations would run out on each of the following 2018…

Q: The payroll of Swifty Company for September 2019 is as follows. Total payroll was $ 444,000, of…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: If a calendar year S Corporation does not request an automatic extension of time to file its income…

A: An income tax return is documentation that determines the company’s or individual’s income earned…

Q: the right to the column Move across the line to the column showing 3 allowances. showing the…

A: In the question, it is mentioned, we will compute the standard amount to be withheld using Forms W-4…

Q: Catriona Company disclosed the following information on December 31, 2021: SSS payable P20,000…

A: As per standard accounting practices Current Liabilities…

Q: The payroll of Marin Company for September 2019 is as follows. Total payroll was $484,000, of which…

A: Journal: Recording of a business transactions in a chronological order.

Q: Prepare the journal entries to record: a) the March 31, 2018 instalment amount payable, b) the…

A: Step 1 Journal is the pat of book keeping.

Q: Swifty Corporation recorded warranty accruals as at December 31, 2020 in the amount of $151,800.…

A: A deferred tax asset is an item on the balance sheet that results from the overpayment or the…

Q: The payroll of Pearl Company for September 2019 is as follows. Total payroll was $444,000, of which…

A: Working note: Computation of FICA taxes payable: Computation of FUTA and SUTA tax payable:

Q: Federal income taxes are allowed as an itemized deduction but are limited to $10,000? Ture or false

A: Introduction: Taxable income: Tax is levied on taxable income only.

Q: Prior to posting the November 30 payroll transaction, FICA Taxes Payable - OASDI, FICA Taxes Payable…

A: Introduction: Every business organization has employees therefore it needs to record on an accrual…

Q: Roth Inc. has a deferred tax liability of $68,000 at the beginning of 2021. At the end of 2021, it…

A: Income tax expense:The expenses which are related to the taxable income of the individuals and…

Q: The payroll of Novak Company for September 2019 is as follows. Total payroll was $454,000, of which…

Concept explainers

Filing Federal Income Tax Return

A tax is the amount of money paid to the government on the revenue earned by the individual or business organization. It acts as an income for the government and an expense for the individual or business organization. There are different regulations regarding filing an income tax return in other countries.

Question

On March 1, 2017 Amelia, a non-
resident citizen, opened a 5-yr time
deposit with her local bank. The
amount of deposit is P600,000 at 6%
annual interest credited every
calendar year's end. Needing money,
she pre-terminated the account on
June 1, 2021. How much final tax is
withheld by the bank at pre-
termination? *
a. Zero
b. P750
С. Р3,000
O d. P7,650

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Joshua borrowed $500 on January 1, 2021, and paid $30 in interest. The bank charged him a service charge of $21. He paid it all back at once on December 31, 2021. What was the APR? (Enter your answer as a percent rounded to 1 decimal place.) APR %
Romeo started an RRSP on March 1, 2016, with a deposit of $35 000.00. She added $19 000.00 on December 1, 2017, and $8500.00 on September 1, 2018. What is the accumulated value of her account on December 1, 2020, if interest is 6.6% compounded monthly? a Ob Oc Od e $39 272.78 $41 260.10 $47 846.07 $70 993.80 $80 850.58
Ms. Rose sold to Ms. Jasmine OMR 80,000 worth of goods on the 15th of April 2021 by accepting a 120 days,9% interest bearing note. Both Ms. Rose & Ms. Jasmine need your help in understanding how and in what way the notes receivable and the payables should be treated. Provide them with the required help by showing how the transactions would be treated in the books of both parties in the following situations. a) When the notes are accepted. b) On the maturity date, the note is honored. c) Suppose Ms. Rose prepared final accounts on the 10th of May 2021. d) Following the above situation, the bill is met on maturity. e) The note was dishonored on the maturity date by Ms. Jasmine.
On March 1, 2021, X Co. assigns $60,000 of its accounts receivable as a collateral for a loan from John Finance Company. X signed a Note Payable to John for $50,0003; John then takes a fee of 5% of the accounts receivable. John also charges 12% interest on the amount of cash X received. If X collects $10,000 in March and remits this amount plus interest owed to John on March 31st, the journal entry X records on March 31st will include: Credit to Cash of $10,470 Debit to Interest Expense of $5,640 Credit to Cash of $10,000 Credit to Cash of $40,000
1) On January 1, 2022 Hideki Matsuyama provides services in exchange for a $10,000 zero-interest bearing note due in 4 years. The effective interest rate for a note of this type is 15 percent. How much revenue does Hideki recognize on January 1, 2022? a) What journal entry to interest revenue does Hideki make on December 31, 2023? Use a positive for a debit, negative for a credit, and zero if there is no journal entry.
A taxpayer filed his income tax return in October 28, 2018. The deadline for the return was April 15, 2022. If he has P40,000 net tax due, compute the penalties in the form of interest. What is the total surcharge penalty? P0 P10,000 P8,000 P20,000 add explanation thankssss
Gallery located in Maine produces journals and photo albums. On May 1, 2021, G borrowed $250,000 from Midwest One Bank by signing a three year, 6% note payable. Interest is due each May 1. How much, if any, should interest expense be debited for on Dec 31, 2021? Fill in the blank. Omit $ sign.
On February 1st, 2021, Seen This Before Inc. (STB) accepted a non-interest-bearing note from its customer Dolon Inc for services rendered. All services had been completed on February 1st, 2021, and they also meet the criteria for revenue recognition. The total amount of the note was $500,000 and was to be paid in full on February 1st, 2024. Dolan's typical borrowing rate is 5%. and paid the note in full on the due date. The present value of the note on February 1st, 2021, is: $431,920. STB and Dolon Inc both follow IFRS. Provide In good presentation form the journal entries that would be required on February 1st, 2021, December 31st, 2021, December 315t, 2022, and December 31st, 2023
16. We must make remittances to Canada Revenue Agency (CRA) on a regular basis. What taxes are considered to be statutory deductions? What does my company have to contribute to these taxes? If the monthly remittances averaged $26,500 in 2018, what is our remitter type? When do I have to have my remittances in to CRA for my May 31, 2020 payroll?
Kelly Jones and Tami Crawford borrowed $12,000 on a 7-month, 6% note from Gem State Bank to open their business, Cullumber's Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023. (a) Prepare the entry to record the receipt of the funds from the loan. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation June 11 Debit Credit
On August 31, 2018, BetsyTotten borrowed $1,000 from Iowa State Bank. Totten signed a note payable, promising to paythe bank principal plus interest on August 31, 2019. The interest rate on the note is 6%. Theaccounting year of Iowa State Bank ends on June 30, 2019. Journalize Iowa State Bank’s (a)lending money on the note receivable at August 31, 2018, (b) accrual of interest at June 30, 2019,and (c) collection of principal and interest at August 31, 2019, the maturity date of the note.
Kelly Jones and Tami Crawford borrowed $26,000 on a 7-month, 6% note from Gem State Bank to open their business, Pharoah’s Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023. what is the entry to record the receipt of the funds from the loan? what is the entry to accrue the interest on June 30?