Ms.Angel is a prominent independent contractor who offers architectural and engineering services.Since RPSV's career flourished,her total gross receipts amounted to 4,250,000 for taxable year 2020.Her recorded cost of service and operating expenses were 2,150,000 and 1,000,000 respectively.She opted to avail of the 40% OSD.What is the invome tax due of Ms. angel in the year 2020?

Ms.Angel is a prominent independent contractor who offers architectural and engineering services.Since RPSV's career flourished,her total gross receipts amounted to 4,250,000 for taxable year 2020.Her recorded cost of service and operating expenses were 2,150,000 and 1,000,000 respectively.She opted to avail of the 40% OSD.What is the invome tax due of Ms. angel in the year 2020?

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 20DQ

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How do the all events and economic performance requirements apply to the following transactions by an accrual basis taxpayer? a. The company guarantees its products for six months. At the end of 2019, customers had made valid claims for 600,000 that were not paid until 2020. Also, the company estimates that another 400,000 in claims from 2019 sales will be filed and paid in 2020. b. The accrual basis taxpayer reported 200,000 in corporate taxable income for 2019. The state income tax rate was 6%. The corporation paid 7,000 in estimated state income taxes in 2019 and paid 2,000 on 2018 state income taxes when it filed its 2018 state income tax return in March 2019. The company filed its 2019 state income tax return in March 2020 and paid the remaining 5,000 of its 2019 state income tax liability. c. An employee was involved in an accident while making a sales call. The company paid the injured victim 15,000 in 2019 and agreed to pay the victim 15,000 a year for the next nine years.
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