Michael is a mixed income earner. He is a self-employed resident citizen and currently the finance...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Michael is a mixed income earner. He is a self-employed resident citizen and currently the finance manager of Hallie Corporation. The following data were provided for the year 2021. Compensation Income, net of mandatory contributions Sales Cost of Sales Business Expenses Interest income from peso bank deposits Interest income from customer's notes Gain on sale of land in the Philippines held as a capital asset with cost of P1,500,000 when the zonal is 1,200,000 P 1,800,000 2,800,000 1,125,000 650,000 80,000 120,000 500,000 1. How much is subject to regular income tax? 2. Assuming he opted to be taxed at 8%, compute his income tax expense. 3. If Michael opted to use OSD instead of itemized deduction, how much is his income tax expense? 4. If Michael opted to use OSD instead of itemized deduction and didn't pay any taxes during the year, compute the tax that Michael should pay to the BIR (Disregard the penalty) Michael is a mixed income earner. He is a self-employed resident citizen and currently the finance manager of Hallie Corporation. The following data were provided for the year 2021. Compensation Income, net of mandatory contributions Sales Cost of Sales Business Expenses Interest income from peso bank deposits Interest income from customer's notes Gain on sale of land in the Philippines held as a capital asset with cost of P1,500,000 when the zonal is 1,200,000 P 1,800,000 2,800,000 1,125,000 650,000 80,000 120,000 500,000 1. How much is subject to regular income tax? 2. Assuming he opted to be taxed at 8%, compute his income tax expense. 3. If Michael opted to use OSD instead of itemized deduction, how much is his income tax expense? 4. If Michael opted to use OSD instead of itemized deduction and didn't pay any taxes during the year, compute the tax that Michael should pay to the BIR (Disregard the penalty)
Expert Answer:
Answer rating: 100% (QA)
To determine the income tax liability of Michael we need to calculate his taxable income first Heres how we can calculate it 1 Calculate Gross Income Compensation Income P1800000 Sales P2800000 Intere... View the full answer
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-1259864230
6th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Posted Date:
Students also viewed these accounting questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The following data were provided by a Domestic Corporation for 2020: Taxes and licenses Documentary stamp taxes 40,000 2,000 Other percentage taxes 120,000 Refund of local business taxes paid in 2019...
-
This exercise shows that the multiplier may be interpreted as a rate of change in general. Assume that the maximum of (x, y) subject to g(x, y) = c occurs at a point P. Then P depends on the value...
-
Evans built a house for Sandra Dyer, but the house had some problems. The garage ceiling was too low. Load-bearing beams in the great room cracked and appeared to be steadily weakening. The patio did...
-
A tennis ball is a flexible, elastic object. If a person of average size stands on a tennis ball, the ball will compress to about half its original (non-compressed) diameter. What is the approximate...
-
If a bar under longitudinal vibration is free at node 1 , the forward difference formula gives a. \(U_{1}=0\) b. \(U_{1}=U_{2}\) c. \(U_{1}=U_{-1}\)
-
Plant assets often require expenditures subsequent to acquisition. It is important that they be accounted for properly. Any errors will affect both the balance sheets and income statements for a...
-
The radius of a rod is 0.224 cm, the length of aluminum part is 1.3 m and of the copper part is 2.46 m.
-
Greyon Inc. operates an active business. Financial statements for the year ended December 31, 2021 report a net income before taxes of $300,000. The following additional information is provided: 1....
-
Let us consider the t-statistic. Let's say we have d f = 21. What is the probability that the t-statistic is between -0.686 and 2.080?
-
What are the key elements of a research work plan?
-
How can proposal-writing software save you time and potentially improve a proposal?
-
What can you do to analyze your strengths and skills?
-
A classmate or coworker suggests that it is redundant to include both an executive summary and an introduction in a report. How would you explain the different functions of an executive summary and...
-
What are the main goals of a presentation opening?
-
Jake (four years old) has been diagnosed with autism. Jake is playing with dinosaurs when Billie approaches this area and picks up a dinosaur in a basket that Jake was not playing with. Jake pushes...
-
Given that all the choices are true, which one concludes the paragraph with a precise and detailed description that relates to the main topic of the essay? A. NO CHANGE B. Decades, X-ray C. Decades...
-
What is the primary internal control goal for cash payments?
-
The following accounts are used by Mouse Potato, Inc., a computer game maker. Required: For each of the following independent situations, give the journal entry by entering the appropriate code(s)...
-
Iconix Brand Group owns and markets various brands and trademarks, including Joe Boxer, London Fog, Ocean Pacific, Ecko Unltd., Umbro, Ed Hardy, Lee Cooper, Buffalo, and Peanuts. The companys...
-
Derive the equations of motion, using Newton's second law of motion, for each of the systems shown in Figs. 6.22. M, cos wt G 15 G3 13 ka 03 4 kn 12 G k3 16 G6 G Number of teeth on gear G, n, (i = 1...
-
Derive the equations of motion, using Newton's second law of motion, for each of the systems shown in Figs. 6.21. Pulley, mass M, mass moment of inertia Jo 3r 3m T x(1) F(t) 2k 000 T x2(1) m T X3(1)...
-
A simplified vibration analysis of an airplane considers bounce and pitch motions (Fig. 6.24(a)). For this, a model consisting of a rigid bar (corresponding to the body of the airplane) supported on...
Study smarter with the SolutionInn App