68b.2. EOC 15 LO 1,3Complete the following schedule for each case. Unless otherwise indicated, assumethat the shareholders have ample basis in the stock investment. All taxpayers use acalendar tax year.CAccumulated E & P Beginningof Year($200,000)150,00090,000d.120,000(60,000)e. Same as (d), except that the distribution of $130,000 is made on June 30.Current E & Cash Distributions (All on LastPDay of Year)$70,000$130,000(120,000)210,000150,00070,000+130,000DividendIncomeReturn ofCapital

We go into the deep intricacies of shareholder dividends and earnings and profits for five separate…

88 b. Accumulated E & P Beginning Current E & Cash Distributions (All on Last of Year Day of Year) ($200,000) $130,000 150,000 90,000 150,000 d. 120,000 130,000 e. Same as (d), except that the distribution of $130,000 is made on June 30, Complete the following schedule for each case. Unless otherwise indicated, assume that the shareholders have ample basis in the stock investment. All taxpayers use a calendar tax year. C $70,000 (120,000) 70,000 (60,000) + 210,000 Dividend Income Return of Capital

88 b. Accumulated E & P Beginning Current E & Cash Distributions (All on Last of Year Day of Year) ($200,000) $130,000 150,000 90,000 150,000 d. 120,000 130,000 e. Same as (d), except that the distribution of $130,000 is made on June 30, Complete the following schedule for each case. Unless otherwise indicated, assume that the shareholders have ample basis in the stock investment. All taxpayers use a calendar tax year. C $70,000 (120,000) 70,000 (60,000) + 210,000 Dividend Income Return of Capital

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter13: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 36P

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Problem 6Ellen, the following passive income at the end of the taxable year 2020: Within the Phil. Without the Phil.1. Dividend income P20,000 P30,0002. Interest income 15,000 25,0003. Royalty income 50,000 80,0004. Lotto winnings 10,000 100,0005. Capital gain: sale of shares stocks (unlisted) 150,000 REQUIRED: Compute the total Income tax due on passive income of the taxpayer:1. Assuming, Ellen is resident citizen __________________ 2. Assuming, Ellen is non-resident alien engaged in trade and business _________________ 3. Assuming, Ellen is non-resident alien not engaged in trade and business_________________
19.At 30 June 2023, Barry Ltd estimates it will be required to pay income tax expenses of $62 000 during the following financial year. The correct journal entry to provide for this income tax estimate at 30 June 2023 is: Group of answer choices 1.DR Income tax expense $62 000; CR Current tax liability $62 000 2.DR Current tax liability $62 000; CR Income tax expense $62 000 3.DR Income tax expense $62 000; CR Retained earnings $62 000 4.DR Income tax expense $62 000; CR Bank $62 000
12. Instructions Use the graduated tax table below if applicable: GRADUATED TAX TABLE UNDER TRAIN LAW (January 1, 2018 to December 31, 2022) Over But not over The tax shall be Plus Of excess over 250,000 0 0 - P 250,000 400,000 0 20% P 250,000 400,000 800,000 30,000 25% 400,000 800,000 2,000,000 130,000 30% 800,000 2,000,000 8,000,000 490,000 32% 2,000,000 8,000,000 2,410,000 35% 8,000,000 A taxpayer registered in 2010 made available the following financial information for TY2021: Balance Sheet: Asset - Php 500,000 Liability - Php 100,000 Stockholders' Equity - Php 400,000 Income Statement: Gross sales - Php 100,000,000 Cost of sales – Php 60,000,000 Operating Expenses - Php 30,000,000 How much is the income tax payable under CREATE Law if the taxpayer is a domestic corporation? Group of answer choices Php 2,500,000 Php 3,000,000 Php…
16. Use the graduated tax table below if applicable: GRADUATED TAX TABLE UNDER TRAIN LAW (January 1, 2018 to December 31, 2022) Over But not over The tax shall be Plus Of excess over    250,000 0 0 - P 250,000 400,000 0 20% P 250,000 400,000 800,000 30,000 25% 400,000 800,000 2,000,000 130,000 30% 800,000 2,000,000 8,000,000 490,000 32% 2,000,000 8,000,000    2,410,000 35% 8,000,000 A taxpayer made available the following financial information:           Gross receipts - Php 10,000,000             Cost of service – Php 6,000,000             Expenses:                         Depreciation expense – Php 200,000                         Miscellaneous expenses – Php 10,000                         Office supplies…
14. Instructions Use the graduated tax table below if applicable: GRADUATED TAX TABLE UNDER TRAIN LAW (January 1, 2018 to December 31, 2022) Over But not over The tax shall be Plus Of excess over    250,000 0 0 - P 250,000 400,000 0 20% P 250,000 400,000 800,000 30,000 25% 400,000 800,000 2,000,000 130,000 30% 800,000 2,000,000 8,000,000 490,000 32% 2,000,000 8,000,000    2,410,000 35% 8,000,000 Nicanor was employed by ABC Corp. from April 1, 2020. He receives basic pay of Php 20,000 per month as compensation. During annualization of compensation in November, it was determined that he will also receive the following: Additional compensation allowance – Php 5,000 Cash gift – Php 5,000 Christmas bonus – Php 5,000 Loyalty award – Php 5,000 Performance bonus/productivity incentive – Php 10,000    How much is the 13th month pay? Group of answer…
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Compute the income tax due in 2021. A. 50,000B. 800,000C. 290,000D. 400,000
Rhodes Corporations financial statements are shown after part f. Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2020? b. What are the amounts of net operating working capital for both years? c. What are the amounts of total net operating capital for both years? d. What is the free cash flow for 2020? e. What is the ROIC for 2020? f. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)
LO.3, 4, 5 Contrast the income taxation of individuals and C corporations as to: a. Alternative minimum tax. b. Dividend income. c. Qualified business income deduction of 20 percent. d. Use of the cash method of accounting. e. Accounting period used for tax purposes. f. Applicable tax rates. g. Due date of the tax return.
Problem 15-58 (LO 15-6) In each of the following independent cases for tax year 2022, determine the amount of business interest expense deduction and disallowed interest expense carryforward, if any. Assume that average annual gross receipts exceed $27 million. Required: a. Company A has ATI of $70,000 and business interest expense of $20,000. b. Company B has ATI of $90,000, business interest expense of $50,000, and business interest income of $2,000. c. Company C has taxable income of $50,000 which includes business interest expense of $90,000 and depreciation of $20,000. Note: For all requirements, leave no cells blank - be certain to enter "0" wherever required. Enter your answers in dollar values not in million of dollars. a. Company A b. Company B c. Company C Interest expense deduction Disallowed interest expense carryforward
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