Noah Anita

Income Taxation
MW 2:30-4pm

Multiple-Choice-Theory: Part 2 
1. A 6. D
2. C 7. A
3. D 8. A
4. A 9. D
5. A 10. D

Multiple Choice:
1. C 2. A
Interest Expense 400,000 Deductible Interest Exp 400,000
Interest Income-TD 100,000
× 33%
33,000
Deductible Interest Exp 367,000

6. D 7. C
Cost 2,000,000 Capital loss-CY 50,000
Acc. Depreciation 600,000 Net Capital loss 70,000
Residual Value 200,000 Capital loss 120,000
1,200,000
÷ years 12
Deductible dep. Exp 100,000

11. C 12. C
Deductible capital loss 60,000 Gross Income -2022 400,000
Deduct. Business Exp-2022 300,000
100,000
Exp 70,000
60,000
10,000
2021 net income 110,000
Multiple Choice: Problems 1
3. C 4. D
NOLCOLY 200,000 Employees Payment 400,000
Ordinary Loss 50,000 Withholding Tax 60,000
Total Deduct. Loss 250,000 Deductible exp 460,000

8. D 9. B
Deductible Capital loss 50,000 Capital Gain-CY 150,000
Net income-LY 80,000
Net capital loss 70,000

13. C 14. C
Taxable Income 110,000 Gross Income 2021 500,000
Deductions 2021 400,000
70,000
30,000
5. A
Office Eqipmnt 200,000
Salaries of employee 40,000
Office utilities exp 60,000
300,000

10. A
Net Capital loss-CO 0

15. C
Taxable Income 150,000
world Taxable income 500,000
0.3
tax due on world Income 125,000
37,500