Noah Anita

Income Taxation
MW 2:30-4pm

True or False 

1. True 6. True 11. True 16. False

2. False 7. False 12. True 17. True
3. False 8. True 13. True 18. False
4. True 9. False 14. True 19. True
5. False 10. False 15. True 110. True

Multiple Choice
1. B 2. D
Insurance Reserve 12/31/2021 3,500,000 Total gross revenue 345,000
Insurance Reserve 12/31/2013 3,200,000 Discount 20%
Deductible amount 300,000 Deductible amount 69,000

5. A 6. B
Total Deducction 0 900,000
expense 350,000
45,000
505,000
20%
Deductible amount 101,000

9. B 10. D
Gross sales -senor citizen 800,000 receipts 93,750
20% ÷ 75%
Deductible discount 160,000 125,000
20%
dedductible discount 25,000

13. A 14. D
Opearting Income 900,000 Opearting Income 900,000
acquisition of computer 500,000 900,000
400,000 10%
acquisition of computer 500,000 90,000
50% acquisition of computer 500,000
Add. Comtribution expense 250000 contribution exp 50%
net income 150,000 add. Contribution exp 250,000
net Income 560,000

17. A 18. C
Additional deduction 0 Milk bank cost 10,000,000
100%
10,000,000

21. D 22. D
Productivity Incentive bonus 800,000 Total Cost 200,000
50% 50%
Additional Bonus 400,000 deductible bonus exp 100,000
Multiple Choice: Problems 1
3. B
Wages Paid 182,000
15%
Deductible add. Comp. rate 27,300

7. B
Property rentals earn 4,100,000
Business expense 2,100,000
deductible dividend 2,000,000

11. D
Compensation expense 2,100,000
25%
Additional deduct. Compensation exp 525,000

15. D
Programe cost 300,000
50%
dedductible amount 150,000
19. B
Gross Income 1,400,000
Limit 10%
140,000
actual hour 180
mandotary legal hour 60
120
× pro bono 1,000
120,000
20,000
4. B
Salaries 144,000
15%
Deductible add. Comp. rate 21,600

8. D
Total Operating Income 3,000,000
Income from related activities 2,400,000
600,000
reserves 50%
Deductible Amount 300,000

12. D
Workplace improvements 300,000
50%
150,000

16. C
Total cost of location station 350,000
100%
350,000
20. B
operating Income 8,000,000
admin exp 6,000,000
Direct cost of service 12,000,000
Gross receipts 26,000,000
Direct cost of service 12,000,000
Gross income from operations 14,000,000
10%
Special deduct. For free legal service 1,400,000