On April 30, 2020 the endowmentinsurance policy of Zandy, for whichhe was paying an annual premium ofP10,000 since April 2000 matured. Hewas then paid the face value of hisinsurance policy in the amount ofP500,000.How much is excludedfrom gross income? *O ZeroP200,000P300,000P500,000 Rem was retired by his employercorporation in 2020 and was paidP1,000,000 as a retirement gratuitywithout any deduction of withholdingtax. In addition, Rem was also paidP50,000 representing terminal leavepay and P45,000 for unpaid bonuses.How much is excluded from grossincome? *ZeroP1,000,000P1,050,000P1,095,000

Solution Note : Dear student as per the Q&A guideline we are required to answer the first…

Answered: surance policy of Zandy, for whicl e…

surance policy of Zandy, for whicl e was paying an annual premium o 10,000 since April 2000 matured. as then paid the face value of his

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter19: Deferred Compensation

Section: Chapter Questions

Problem 38P

See similar textbooks

Related questions

Q: ummer Inc has machine with a carrying value of 450,000 on December 31, 2021. The following informati...

A: solution given carrying value on December 31, 2021 =450000 Expected net cash flows (undiscoun...

Q: Prepare the journals for all transactions

A: These are the accounting transactions that are having a monetary impact on the financial statement ...

Q: Calculate the monthly cost savings (assume a 30-day month) if a restaurant reduced portion sizes

A: The question provides us with the details of 4 dishes with its current portion size. Dish Curren...

Q: Live Corporation has equipment with a carrying value of 450,000 on December 31, 2021. The following ...

A: The question is related to Impairment of Assets. The Impairment Loss is Excess of Carrying Amount ov...

Q: Compute the balance of Buildings and Equipment, net to be reported in the consolidated balance sheet...

A: While preparing consolidated balance sheet, all the assets and liabilities of both companies would b...

Q: gkook Co. purchased goods with invoice price of P3,000 on account on December 27, 2021. The related ...

A: Under FOB shipping terms of the shipment, Freight is to be borne by the buyer of goods. Therefore it...

Q: equal ounces of Au extracted daily. If the Au today is $2,200/oz, which process is more feasible con...

A: The world's oceans contain on average of 0.9 oz of Au/ton of ocean water. There are two process in m...

Q: Perpetual Inventory Using LIFO Beginning inventory, purchases, and sales for Item 88-HX are as follo...

A: Solution Lifo is the method is used to account for inventory. under it, costs of the most recent pro...

Q: purchased goods with invoice price of P3,000 on account on December 27, 2021. The related shipping c...

A: Under FOB shipping terms of the shipment, Freight is to be borne by the buyer of goods. Therefore it...

Q: A, B and C are partners with the following P/L ratio and capital balances: A (60%) P100,000; B(30%) ...

A: The partnership comes into existence when two or more persons agree to do the business and share pro...

Q: The sales of Super Store for the month is P 80,756.00. Beginning inventory was P 24,435.00; and purc...

A: The cost of goods sold indicates the actual cost of goods sold and net profit is the excess of reven...

Q: What are the components of audit risk and how do these relate to each other?

A: The possibility that financial statements are significantly incorrect, even if the audit opinion cer...

Q: 1. Purchased raw materials on account, $95,200. 2. Raw Materials of $40,000 were requisitioned to th...

A: 1.Raw Materials inventory a/c Dr. $95,200 Accounts Payable A/c. Cr. $95,200 2....

Q: E1 1 To ald in planning, Jay Corporation is preparing a contributon format income statement. 3 Budge...

A: Contribution margin=Sales-Total variable expensesNet operating income=Contribution margin-Total fixe...

Q: In 2020, Ted Baker had total assets of $510.31 million, of which $219.92 million were total noncurre...

A: In order to determine the percentage of current assets on the total assets, the total current assets...

Q: In 2020, Ted Baker had total assets of $510.31 million, of which $219.92 million were total noncurre...

A: Total assets = Non current assets - Current assets $510.31 million = $219.92 million - Current ...

Q: Exercise 7-7 Percent of accounts receivable method LO P3 Mazie Supply Co. uses the percent of accoun...

A: Allowance for doubtful accounts is considered as the contra asset account. It is used to decrease th...

Q: Use the following schedule to answer the questions below. Units Cost per unit Beginning inventory 10...

A: Under LIFO method the units sold will be first from the latest purchases and ending inventory should...

Q: The records of Phoenix Corporation revealed the following data for the current year. $ 73,150 115,00...

A: Here given the problem which are related with the overhead charges which are incurred actual and app...

Q: 1. Compute the company's CM ratio and Its break-even polnt in unit sales and dollar sales. 2. The pr...

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for yo...

Q: 2. Fill in the missing number for each of the following. Assets Liabilities Owner's Equity $100,000 ...

A: Solution As per the accounting equation Total assets = liabilities + owner's equity So, Owner...

Q: On March 10, 2020, Wildhorse Company sold to Barr Hardware 230 tool sets at a price of $53 each (cos...

A: A balance sheet is a financial statement that illustrates the assets, liabilities, and shareholder e...

Q: Mia Wiz sells computers. During May, it sold 400 computers at a $900 per unit price. The fixed budge...

A: The variance is the difference between the actual data and standard output of the production.

Q: Allowance for Bad Debts is what kind of account?

A: There are two ways by which bad debt expense is reported by company which is direct method and allow...

Q: Three owners join together to form ABC, INC., which properly elects to be taxed as a C corporation. ...

A: Partnership means where two or more person comes together to do some common business activity and ea...

Q: The notes receivable account of Kilo, Inc. consisted of the following: 1. 60-day note of P10,000...

A: The note receivable is an asset for the business, which is due for payment from customers on future ...

Q: Explain how useful the price mechanism is in tackling the basic economic problem?

A: the main role of price mechanism in basic economic problem is allocate scare resources in market eco...

Q: Raw materials on hand- P85,000 · Raw materials used (including indirect materials of P35,000)...

A: The balance of inventory will include the balance of Raw material plus the balance of Finished goods...

Q: Hunter Appliances sells refrigerators for $1,500, which includes a two-year warranty that requires t...

A: The first, systematic recording of all monetary business transactions is called a journal entry. The...

Q: Morgan Financial Services, Inc. was incorporated on January 1, 2021, with 300,000 no par value commo...

A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...

Q: QUESTION 5 Chain Reaction, Inc. allocates overhead using machine hours as the allocation activity. T...

A: Overhead rate = Estimated Overhead/ Estimated total level of activity ( machine hours ) = $ 200000/1...

Q: Lucena Products provided the following information: ...

A: Solution: Amount of inventory should be reported in statement of financial position = Raw materials ...

Q: You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door ope...

A: Cost variance is a disparity between the expense that was actually incurred and the expense that was...

Q: During 2020, Cullumber Company started a construction job with a contract price of $1,600,000. The j...

A: Solution a: Computation of % of completion, revenue recognition and Gross Profit - Cullumber Comp...

Q: In 2020, Ted Baker had total assets of $510.31 million, of which $219.92 million were total noncurre...

A: Formula: Percentage of Current Assets on Total Assets = ( Current Assets / Total Assets ) x 100

Q: 21. Laguna Company purchased a machine with a cash price of P350,000. Laguna gave the followin...

A: Note means an instrument issued by company acknowledging the debt due from company to bond holder. I...

Q: Which is true regarding the Investment in Subsidiary Stock account?

A: a) It is accounted for in the parent’s books and is included as non-current assets in the parent’s b...

Q: An investor who is in a 33% tax bracket for normal (ordinary) income buys a stock for $5,000 and sel...

A: Financial Instrument: A financial instrument alludes to a resource that can be exchanged by financia...

Q: Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base...

A: Standards are set in advance, from the standard set the actual performance are required to be measur...

Q: The perpetual inventory records of Penny Co. indicate that $415,000 of merchandise should be on hand...

A: Inventory as per books = $415,000 Physical actual inventory $370,000 Shrinkage amount = 415000-3700...

Q: Briefly describe the relationships between loss / combined ratios AND underwriting, marketing and cl...

A: Insurance: Insurance is a policy, addressed by an arrangement, where an individual or element gets m...

Q: Hawk Homes, Inc., makes one type of birdhouse that it sells for $29.40 each. Its variable cost is $1...

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for y...

Q: Exercise 7-3 Sales on store credit card LO C1 Z-Mart uses the perpetual Inventory system and has its...

A: Interest on sale on store credit card is income for the store hence credited to interest account

Q: Wright Company's cash account shows a $30,100 debit balance and its bank statement shows $28,400 on ...

A: Sometimes the balance shows in the cash book and in the bank statement doesn't matches. In order to ...

Q: Lindon Company Is the exclusive distributor for an automotive product that sells for $28.00 per unlt...

A: Cost volume profit analysis is the technique used by the management for decision-making. The methods...

Q: . Lucena Products provided the following information: ...

A: Inventory to be reported in statement of financial position = Raw materials inventory + Finished goo...

Q: The transaction price allocated to the pool and the installation is

A: Cost allocation refers to the process which is used by the company to allocate the cost of product o...

Q: On January 1, 2021, Major Corp. granted its employees an option to purchase 5,000 of Major's common ...

A: Employee Stock Option Plan: It is an employee benefit plan to participate in the Employee Stock Opti...

Q: Meatballs Company purchased forest assets for a lump sum amount of P45,000,000 which is equal to the...

A: Biological assets are the living assets owned by the company. Such assets are valued at fair value o...

Q: At December 31, year 1, Charter Holding Co. owned the following marketable securities in capital sto...

A: Solution A journal is a company's official book in which all business transaction are recorded in ch...

Concept explainers

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.

Question

On April 30, 2020 the endowment
insurance policy of Zandy, for which
he was paying an annual premium of
P10,000 since April 2000 matured. He
was then paid the face value of his
insurance policy in the amount of
P500,000.How much is excluded
from gross income? *
O Zero
P200,000
P300,000
P500,000

Rem was retired by his employer
corporation in 2020 and was paid
P1,000,000 as a retirement gratuity
without any deduction of withholding
tax. In addition, Rem was also paid
P50,000 representing terminal leave
pay and P45,000 for unpaid bonuses.
How much is excluded from gross
income? *
Zero
P1,000,000
P1,050,000
P1,095,000

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

LO.2 For calendar year 2019, Jean was a self-employed consultant with no employees. She had 80,000 of net profit from consulting and paid 7,000 in medical insurance premiums on her policy covering 2019. How much of these premiums may Jean deduct as a deduction for AGI? How much may she deduct as an itemized deduction (subject to the AGI floor)?
The taxable income of Jenny for first week of January 2021 was R3 220. She did not earn overtime pay or any other remuneration. Her weekly pension deduction was R280. Her other deductions amounted to R800. Which one of the following statements is true? Select one: O A. Her contribution to the pension fund was 8% of her normal pay. O B. Her net wage was R2 140. O C. Her gross wage was R4 300. O D. Her gross wage for January 2021 was higher than her basic wage.
4. Mr. Ankit retired on April 30, 2020. He will be receiving gratuity of *5.5 lakh and leave encashment of *2.20 lakh. He will also be receiving employee and employer contribution to provident fund. If he opt for the reduced rate of tax. Explain whether he will be eligible for the exemption under Income Tax Act,
lan earned $150,000 of salary as an employee in 2022. How much should his employer have withheld from his paycheck for FICA taxes (rounded to the nearest whole dollar amount)? Multiple Choice O $2,175 $11,289 $9,114 $11,475
In 2021, Mr. Crisanto Reyes, a Minimum Wage Earner, received the following from his employer:Annual minimum wage salary, P167,500;Holiday pay, overtime pay, and night shift differential pay, P10,000;13th-month pay, P13,000How much is his income tax due?
Mr. Raya earns purely compensation income for the year 2021 with an annual basic salary of Php480,000.00 and other compensation received as follows:Holiday, OT and Night Differential Pay – Php56,091.95Sick leave conversion (3 leave credits) – Php5,517.24Government Mandatory Contributions – Php21,900.00 a. How much is the total non-taxable income for the year 2021? b. How much is the total taxable income for the year 2021? c. How much is the income tax due for the year 2021?
In 2018, Ronnie Alonte received from his employer a promissory note with a face value of P 50,000 for services rendered. The note will mature in 2019. However, it can be sold to a bank at a discount of 25%. The employer paid the promissory note in 2019. How much is the taxable income to be declared by Alonte on the promissory note in 2018 and 2019? 2018 2019a. P 50,000 P 50,000b. P 12,500 P 37,500c. P 37,500 P 12,500d. None P 50,000
Justin received all of the following compensation for the year 2021: Basic Salary Php 258,000 Mandatory deductions 21,600 Withholding Taxes 14,000 Position Allowance 36,000 Overtime Pay 27,000 De minimis benefits 22,000 13th month pay 10,000 Total non-taxable benefits Php 70,600 How much is the Taxable compensation tax: a. 258,000 b. 388,600 c. 318,000 d. None of the Choices e. 328,000
Mr. Ramos earns purely compensation income for the year 2021 with an annual basic salary of Php480,000.00 and other compensation received as follows:Holiday, OT and Night Differential Pay – Php56,091.95Sick leave conversion (3 leave credits) – Php5,517.24Government Mandatory Contributions – Php21,900.00 a. How much is the total non-taxable income for the year 2021? b. How much is the total taxable income for the year 2021? c. How much is the income tax due for the year 2021?
Pedro has the following income in 2020. Compensation income including 65,000 for SSS-365,000 Supplementary compensation income- 25,000 13th month pay and other benefit-45,000 Compute his taxable compensation income P325,000 P345,000 P365,000 P390,000 Juan, an employee of SSS, received his 13th month pay of P30,000 last December 14, 2020. His total deductions for SSS, PHIC and HDMF is P16,000. Compute Guerrero's taxable compensation income for 2020 P14,000 P30,000 P344,000 P374,000
8. Z, minimum wage earner, received the following for 2018: basic salary of P 140,000, overtime pay of P 20,000, night shift differential of P 10,000 and 13h month pay of 100,000. What is the taxable net income of Z?
If C retired and received ₱90,000 as a retirement price, how much will be the adjusted capital of A under bonus method?