Mrs. Smith, the legal wife of Mr. Smith who is the city treasurer of Baguio, provided an information to the Bureau of internal revenue unpaid taxes leading to the recovery of P9,500,000. REQUIRED: 1. How much is the net amount to be received by the informant after deduction of final taxes?
Q: Ms. T. Potts, the treasurer of Ideal China, has a problem. The company has just ordered a new kiln…
A: When the installation cost is treated as a separate current expense, then the present value of the…
Q: qualitative answers should be written in full sentences with depth to your responses when needed.…
A: The answer is stated below: Note: Answering the first three subparts as there are multiple…
Q: When employees of County Bank are summoned toserve on jury duty, the firm pays its workers the…
A: Federal insurance contribution act (FICA) taxes are the payroll taxes that are withheld from…
Q: Andy Simmons is a CPA with his own accounting and tax practice. He occasionally does an audit for…
A: Ethical dilemma: Ethical dilemma refers to the mental conflict faced by an individual in the…
Q: Chanon, Inc. is a supplier of office equipments to the government. The company has recently…
A: Here describe the details of generating invoice which are provided to the government for delivering…
Q: Mike Inc. is switching from a cash to an accrual method for tax purposes effective 1/1/X2. Mike…
A: Taxable income: It can be defined as an income that is used or considered while calculating the tax…
Q: Sinigang na Baboy Company, a domestic corporation, started operations in the latter part of the…
A: Deferred tax liability will be created on temporary difference arises due to difference in…
Q: Ned Naïve operated several franchise stores for a large company, and, at the home office’s…
A: Reduced tax liability and a tax refund at zero or almost zero are the objectives. If you anticipate…
Q: During 2005, Tedd Co. became involved in a tax dispute with the IRS. At December 31, 2005, Tedd's…
A: Accrued liability arises when accrual basis of accounting is adopted by the business to record that…
Q: Chanon, Inc. is a supplier of office equipments to the government. The company has recently…
A: The answer is stated below:
Q: Circular 230, Subpart B
A: As per Circular 230, Subpart B, a practitioner must inform IRS any information regarding client.
Q: As a newly hired IRS trainee, you have been asked to calculate the amount of tax refund or tax owed…
A: Tax refund is the amount which is to be received back by the taxpayer when the taxpayer has already…
Q: In preparing the 2021 Annual Income Tax Return of Nicanor, the following information were culled…
A: The business income is calculated below:- Particulars Amount Amount Income from Business…
Q: During a recent IRS audit, the revenue agent decided that the Parker family used their closely held…
A: Calculation of accumulated earnings tax Falco's after tax earnings= 1030000 x (1-0.34)…
Q: Ms. T. Potts, the treasurer of Ideal China, has a problem. The company has just ordered a new kiln…
A: present value of the cost of the kiln if the installation cost is treated as a separate current…
Q: What amount of withholding tax shall Jefrey Ancheta deduct on the professional fees?
A: Given information is: Miss Vicky Belo, a known dermatologist conducted an internal abs enhancement…
Q: As a tax consultant, you receive tax forms and financial reports from various companies. Following…
A: Deferred tax is a notional asset or liability which arises when there is a difference between pre…
Q: Provision of doubtful debts of $4,200 for a detective agency.
A: Provision of doubtful debts of $4,200 for a detective agency - It is considered to be a non…
Q: Juan inquired from the BIR whether or not he will be covered with the new tax law. The BIR issued an…
A: Here Mr. Juan already got the administrative ruling which state that activities are not covered by…
Q: Mr. Ben T. Lador, the Chief Accountant, availed of the car plan of Kiowa Company. Under the plan, he…
A: Besides the basic salary and various allowances, the employers also provide their employees…
Q: Example 1 concludes that Miranda cannot deduct her annual CPA license fee because her mother paid it…
A: A business expenditure refers to costs incurred in the ordinary course of business.
Q: As a tax consultant you receive on continuous basis inquiries and tax forms from your clients.…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Mrs. Smith, the legal wife of Mr. Smith who is the city treasurer of Baguio, provided an information…
A: only a mere ten percent (10%) reward or l million (whichever is lower) shall be given to any tax…
Q: The public accountant submitted to the tax office his revenue of his office for the year 2021…
A:
Q: For each of the following situations, indicate the nature and amount of the penalty that could be…
A: Penalty:Penalty refers to the punishment imposed on a person or company for breaking the rule and…
Q: Petroleum, Inc. is in need of tax consulting services and wants to engage an accounting firm to…
A: Here talking about the contractual agreement in between the petroleum Inc and Brick Water House…
Q: Ms. T. Potts, the treasurer of Ideal China, has a problem. The company has just ordered a new kiln…
A: Time valueValue received today by an individual is of more worth than that of receiving the same…
Q: A summary of the transactions of Ramsgate, who is registered for sales tax at 17.5%, shows the…
A: We have the following information: Registered sales tax rate: 17.5% Outputs (Sales): $60,000…
Q: 1. During the year, Moses won $5,500 from casino gambling. However, Moses was not so lucky when…
A: In this question, we will find out that how much should Moses report in his 1040 Form Sr. in 2021…
Q: You were asked by your audit client Panga Inc., to assist them in preparing its income tax return…
A: First of All Calculate Gross Total Income Pre Tax income = 10000000 Add : Provision for the Loss…
Q: As a tax consultant you receive on continuous basis inquiries and tax forms from your clients.…
A:
Q: During a recent IRS audit, the revenue agent decided that the Parker family used their closely held…
A: given During a recent IRS audit, the revenue agent decided that the Parker family used their…
Q: Craig commits fraud on his tax return. It is found that he was $40,000 deficient in his tax because…
A: If there is any deficiency in tax return due to fraud then such 75% of such tax shall be paid as…
Q: Ms. T. Potts, the treasurer of Ideal China, has a problem. The company has just ordered a new kiln…
A: Present value of annuity is the current value of the future payments that are calculated using the…
Q: Minda, resident citizen, invested in a 6-year bond issued by a local bank. The bond was issued by…
A: GIVEN ÷ 6 - year bond issued by local bank Interest income earned = P2000 Requirement = final tax…
Q: Mr. Curandang submitted a sworn statement regarding the alleged tax evasion practices of Chitie…
A: The reward is a sum equivalent to 10% of the surcharges, revenues, or fees recovered and/or fine or…
Q: A concerned government employee furnished the BIR a statement detailing the improper tax practices…
A: Improper Tax Practice:- It means when an individual intentionally does not pay taxes or not properly…
Q: Nicanor left the following bank deposits upon his death: • Uno Bank - Php 1,000,000 • Dos Bank - Php…
A: The heirs will opt for final tax and bank will collect final with holding tax at rate of 6% on 6…
Q: Sinigang na Baboy Company, a domestic corporation, started operations in the latter part of the…
A: Deferred tax liability will be created on temporary difference arises due to difference in…
Q: The following program has been prepared for the audit of accruedreal estate taxes of a client that…
A: a. Obtain a schedule of the accrued taxes from the client and tie the total to the general ledger:…
Q: Which of the following statements about extensions of time to file certain business income tax…
A: As per U.S. Internal Revenue Service: It is required of most entities to use electronic funds…
Q: Monica, a self-employed taxpayer, travels from her office in Boston to Lisbon, Portugal, on…
A: Tax refers to the amount charged by the government from individuals and organizations on the income…
Q: Officials for the city of Winfield have agreed to forgo real estate taxes normally charged to…
A: Tax abatement is the reduction that is granted in the taxes by the government to encourage economic…
Q: ou are the tax supervisor at a local tax return preparation firm. Suzanne and her husband Steve have…
A: The question is based on the concept of Taxation
Q: As a tax consultant, you receive tax forms and financial reports from various companies. Following…
A: The deferral tax occurs due to the time gap between accrued tax and tax paid. Deferred tax liability…
Mrs. Smith, the legal wife of Mr. Smith who is the city treasurer of Baguio, provided an information to the Bureau of internal revenue unpaid taxes leading to the recovery of P9,500,000.
REQUIRED:
1. How much is the net amount to be received by the informant after deduction of final taxes?
Step by step
Solved in 2 steps with 2 images
- Ms. Kirsten provided information to the BIR leading to the recovery of P8,000,000 unpaid taxes. Compute for a. Final withholding tax b. Net amount to be released to the tax informerMrs. Smith, the legal wife of Mr. Smith who is the city treasurer of Baguio, provided an information to the Bureau of internal revenue unpaid taxes leading to the recovery of P9,500,000. How much is the net amount to be received by the informant after deduction of final taxes? * a. P950,000 b. P1,000,0000 c. P855,000 d. 0Your qualitative answers should be written in full sentences with depth to your responses when needed. For questions and problems requiring computations, you need to share your supporting calculations. 1a. Jim files his return one month after the due date and pays the remaining $8,000 of tax owed by him. What are his delinquency penalties? 1b. Why is income-shifting considered such a major tax planning concept? 1c. Olivia is being audited by the IRS. The revenue agent determines that certain expenses that were deducted on her return are not valid, and he accordingly makes adjustments to her tax liability. Upon receipt of her 30-day letter, she phones you, a CPA, for advice regarding possible future action on the matter. What options would you discuss with Olivia? 1d. Compute the taxable income for 2020 under each of the following circumstances: Jim is married and files a joint return. Jim and his wife have two dependent children. They have adjusted gross income of $30,000 and…
- Required information [The following information applies to the questions displayed below.] Rebecca is a calendar-year taxpayer who operates a business. She made the following business-related expenditures in December of this year. Indicate the amount of these payments that she may deduct this year under both the cash method of accounting and the accrual method of accounting. (Leave no answers blank. Enter zero if applicable.) d. $1,500 for interest on a short-term bank loan relating to the period from November 1 of this year, through March 31 of next year. Deductible Amount Cash method Accrual method $ 0As a tax consultant you receive on continuous basis inquiries and tax forms from your clients. Following are independent inquires that you have to check and reply back to your clients. For each enquiry below and listed 1 to 4, comment on whether the given calculations are correct or not, explain your answer and give the correct calculations by showing your workings if you disagree. 1. Jurisdiction A imposes income tax on businesses. The income tax is equal to 1% of income up to $ 200,000 and 1.5% of income in excess of $200,000. Nasha Company reported $1,564,000 net income for the year ended December 2020. Nasha's accountant reported an income tax of $23,460. 2. Taxpayer D has taxable income of $172,450. He operates in a Jurisdiction where the tax equals 10% of the first $34,000, 15% from $34,001 to $138,000 and 25% in excess of $138,000. Taxpayer D believes that his average tax rate equals his marginal tax rate of 25%. 3. Taxpayer E lives in a jurisdiction which impose 15% individual…Required information [The following information applies to the questions displayed below.] Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay Clyde a year-end bonus of $1,000. Determine the amount Clyde should include in his gross income this year under the following circumstances. (Leave no answer blank. Enter zero if applicable.) a. Paylate Corporation wrote the check and put it in Clyde's office mail slot on December 30 of this year, but Clyde did not bother to stop by the office to pick it up until after year-end. Amount to be included in gross income
- A concerned government employee furnished the BIR a statement detailing the improper tax practices of a corporate taxpayer. The information was instrumental to the collection of P500,000 tax. How much informer's tax reward after tax shall be released to the informant?Accounting 1. During the year, Moses won $5,500 from casino gambling. However, Moses was not so lucky when betting for football and basketball games of which he lost $2, 500 and $1,500, respectively. A. How much should Moses report in his 1040 Form Sr. in 2021 Tax Return? Show your work. B. Briefly explain your answer to an IRS Agent who may question your rationale.Curandang submitted a sworn statement regarding the alleged tax evasion practices of Chitie Corporation. This led the BIR to recover P20,000,000 unpaid taxes. How much net tax informer's reward shall be paid to Mr. Curandang?
- 1. Electronic filing (e-filing): a.Generally results in a slower refund. b.Reduces the chances that the IRS will make mistakes when inputting tax return information. c.Requires the services of a professional. d.Can be done only by telephone. 2. Barry is a self-employed attorney who travels to New York on a business trip during 2021. Barry's expenses were as follows: Airfare $550 Taxis 40 Restaurant meals 150 Lodging 350 How much may Barry deduct as travel expenses for the trip? a.$0 b.$1,015 c.$940 d.$1,090 e.None of these choices are correct. 3. Which of the following is deductible as dues, subscriptions, or publications? a.Subscription to the "Journal of Taxation" for a tax attorney b.Dues to a health club for a doctor c.Dues to the drama club for a student d.Subscription to "Vogue" magazine for a corporate president e.None of these choices are correct.Atimonan Company received a bill for P27,440 from a VAT service provider. The payment for the service is subject to 2% creditable withholding tax. If Atimonan is a VAT taxpayer and a top withholding agent, what is the deductible expense? What respectively is the withholding tax and the amount of cash to be paid by Atimonan to the service provider?I. 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.