Determine whether the following income/proceeds received in 2021 istaxable. If applicable, determine the appropriate tax and tax rate.DIVIDEND INCOME:Basic or FinalТахable orExempt?Тах?1. Dividend income received by aresident citizen from domesticcorporations2. Dividend income received by aresident alien from domesticcorporations3. Dividend income received by aresident citizen from foreign.corporations4. Dividend income received by adomestic corporation from anotherdomestic corporation5. Dividend income received by adomestic corporation from a residentforeign corporation (assume the rationof gross income derived in thePhilippines for the past three (3) yearswas 70%)6. Dividend income received by aresident foreign corporation fromdomestic corporation7. Dividend income received by aresident foreign corporation fromanother resident foreign corporation.The ratio of income in the Philippinesover its world income for the last three(3) years was 40%

1. Dividend income received by a resident citizen from domestic corporations 2. Dividend income received by a resident alien from domestic corporations B. Dividend income received by a resident citizon from foroian reian

1. Dividend income received by a resident citizen from domestic corporations 2. Dividend income received by a resident alien from domestic corporations B. Dividend income received by a resident citizon from foroian reian

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter4: Additional Income And The Qualified Business Income Deduction

Section: Chapter Questions

Problem 18MCQ

See similar textbooks

Related questions

Q: Concord Corporation makes and sells umbrellas. The company is in the process of preparing its…

A: Total budgeted variable selling and administrative expenses for October = Budgeted sales units of…

Q: Selected transactions are presented below. Give the effect of the following transactions on the…

A: The transactions has the dual effects on accounting equation of the business. For example, if assets…

Q: A solar panel dealer acquires a used panel for $12,400, with terms FOB shipping point. Compute total…

A: Note: Cost of inventory includes the cost of purchase material/goods, freight, and any taxes paid by…

Q: ou invested $5,000 into a certificate of deposit (CD) today and agreed to leave it in the CD for the…

A: Future Value Future value is what a sum of money invested today will become over time, at a rate of…

Q: Using the following information: a. Beginning cash balance on March 1, $80,000. b. Cash receipts…

A: Cash budget is prepared to estimate the total cash received and total cash disbursement. It is…

Q: mpany's quality cost report is to be based on the following data: Test and inspection of incoming…

A: The question is related to Quality Cost. The quality cost is classified into two 1. Cost of…

Q: f c/s =25% , prime cost $140, fixed cost $4600 contribution 80 and absorption cost is40. What is the…

A: Contribution means the difference between the selling price and variable cost . Fixed cost remain…

Q: Direct materials (3.0 pounds @ $4.00 per pound) Direct labor (1.7 hours @ $13.00 per hour) Overhead…

A: Direct labor variance Total is the sum of direct labor rate variance and direct labor efficiency…

Q: ABC Company data: Sales 9s0000 Variable and fixed costs both 468000 Beginning retained earnings…

A: Formula: Ending Retained Earnings = Beginning retained Earnings + net income - Dividends paid

Q: ABC Company sold goods worth $58000 On credit; Cost of merchandise sold is $ 22000; Pass all the…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Question 37 Increased government spending on interstate highways, public housing…

A: Government Spending- It includes all government expenditure, investment, and transfer payments. In…

Q: onths on an inve

A: Given , Earned= 265, Investment= 20,000.

Q: Homestead Crafts, a distributor of handmade gifts, operates out of owner Emma Finn's house. At the…

A: Note: Titles of goods under FOB destination are transferred to the purchaser only when goods are…

Q: Instructions: I. Resolve the ratios listed on table a for each year (2020 & 2021): a. For each…

A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…

Q: PROBLEM 4: MULTIPLE CHOICE-COMPUTATIONAL 1. In preparing its August 31, 2004 bank reconciliation,…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Create a T-Accounts and General Journal. Note: Office supplies has a P575 balance at the end of the…

A: Journal is a book in which all business financial transactions are recorded when they occur. All…

Q: 2. On October 1, 2011, Sammy Company issued 8,000,000 of its 10-year 8% term bonds dated October 1,…

A: c. 112,471.65 Balance of Discount on Bonds Payable on December 31,2020

Q: dentify each of the following statements as either true or false. a. A voucher system of control…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…

Q: 11. Partnership assets may bè revalued but they may value. Is allocated to the existing partners…

A: As per the norms of Bartleby, in case of multiple sub parts been asked per question, only first…

Q: The following balances were extracted from the books of Chanda at 31/12/19…

A: What is meant by Final Accounts? It is the process of preparing final books of accounts which then…

Q: A company reports the following beginning inventory and two purchases for the month of January. On…

A: Under FIFO method, using perpetual inventory value of ending inventory is calculated at the end of…

Q: Required: 1) Given the different market interest rates below, calculate the following items.…

A: A bond is selling at a discount if its selling price is less than its face value and will be trading…

Q: Suppose a construction company has an inventory of 1 million board ft of lumber purchased as…

A: Historical Cost: According to accounting principles, a historical cost is a method of valuing assets…

Q: Schedule of Cash Collections of Accounts Receivable Bark & Purr Supplies Inc., a pet wholesale…

A: Cash collected in May = May sales ×53% = $160,000×53% =$84800

Q: 4. Prepare a detailed overhead variance report that shows the variances for individual items of…

Q: E12 -6 On 10 June 20X6, a fire occurred in the warehouse of John Bathloi. His financial year ends on…

Q: a. Compute the amount of pu b. Compute the amount of th c. Compute the amount of di d. Compute the…

A: I am answering sub-parts g, h, i as specifically asked by the student. Inventory is an asset for the…

Q: J, a partner of a general professional partnership, showed the following income and losses: Net…

A: Partnership refers to the contractual arrangement among the people or individuals who carry out the…

Q: Required information [The following information applies to the questions displayed below.] Timberly…

A: Depreciation expense=Cost of Asset-Salvage ValueUseful Life

Q: Question 4 Pendrill makes car bumpers. The following information is obtained from January's budge…

A: Point to be noted In absorption Costing, all manufacturing costs form part of the cost of goods…

Q: Southern Style Realty has total assets of $485,390, net fixed assets of $250,000, current…

A: Formula: Total debt ratio = Total debts / Total Assets

Q: . Auditor

A: Management should address written representation about a firm's annual Audit to the

Q: O e. equipment e.

A: In this question, Best category for the Purchase of stove for house is asked.

Q: 4. Compared to straight-line depreciation, does accelerated depreciation result in payment of less…

A: Accelerated Method of Depreciation: This method of depreciation allows the owner of the asset to…

Q: Q25 Examine the chart below which contains Bank 1’s balance sheet. If the legal reserve requirement…

A: Reserves are profits that have been put aside for a specific purpose.. Reserves are occasionally…

Q: Lilitop Corporation purchases trees from Hummer lumber and processes them up to the split-off point…

A: Sales value can be determined by multiplying total sales units by sales price per unit.

Q: If a company has fixed costs of S6.000 per month and their product that sells for $200 has a…

A: Formula: Break even point in units = Fixed cost / Unit contribution margin

Q: issuing at P15 per share one-half of the 950,000 ordinary On January 1, 2021. "enn Conmpany began…

A: Shareholder equity (SE) refers to a firm's net value or the entire monetary amount that would be…

Q: Javier and Anita Sanchez purchased a home on January 1, 2021, for $600,000 by paying $200,000 down…

A: After Tax Interest Cost: The after-tax cost of debt is equal to the interest paid on debt minus any…

Q: A business provides services to a customer on credit.Which of the following is correct: A.Assets…

A: Every transaction has dual effect on the books of accounts. Total assets = Total liabilities +…

Q: What is the most likely consequence of unethical behaviours by management accountants? Satisfied…

A: Basic Concept of Management Accounting

Q: Part 2 Accounting Terminology. For each of the following statements, indicate the term described. a.…

A: Since you have posted question with multiple sub-parts, we will do the first three sub-parts for…

Q: 000,$ 160 Non-current assets 407 Investment in Jerry (90,000) 128 Net Current Assets 125 90 660 250…

A: When a company acquires shares in another company in the majority, the purchasing company becomes…

Q: Which of the following methods consider the time value of money? A. payback and accounting rate of…

A: Time Value of Money The time value of money is the concept that money you have now is worth more…

Q: The risk free interest rate is 150 basis points. The market is assigning a risk premium of 300 basis…

A: The question is related calculation of selling price of property. The details are given as under…

Q: A bond a has a par value of P100, a coupon rate of 10.75% and matures in 5 years. If interest is…

A: Bonds Bonds refer to the fixed income instrument that is issued by the corporations or government in…

Q: 1. Mr. Cruz is a minimum wage earner and a part-time real estate agent for a real estate broker. In…

A: Calculation of Income Tax

Q: RAV Manufacturing Company has two production departments (Fabrication and Assembly) and three…

A: Direct Method: Under direct method, Supporting departments’ costs are allocated to Producing…

Q: Homework created question Save You want to purchase a new car for a price of $31,250. Your finance…

A: The question is based on the concept of Financial Management.

Q: P incurs $8,000 of damages because of D's negligent handling of radioactive waste. The…

A: when there is case of loss for one party due to negligence of other party . The party who Suffer…

Question

Determine whether the following income/proceeds received in 2021 is
taxable. If applicable, determine the appropriate tax and tax rate.
DIVIDEND INCOME:
Basic or Final
Тахable or
Exempt?
Тах?
1. Dividend income received by a
resident citizen from domestic
corporations
2. Dividend income received by a
resident alien from domestic
corporations
3. Dividend income received by a
resident citizen from foreign
.corporations
4. Dividend income received by a
domestic corporation from another
domestic corporation
5. Dividend income received by a
domestic corporation from a resident
foreign corporation (assume the ration
of gross income derived in the
Philippines for the past three (3) years
was 70%)
6. Dividend income received by a
resident foreign corporation from
domestic corporation
7. Dividend income received by a
resident foreign corporation from
another resident foreign corporation.
The ratio of income in the Philippines
over its world income for the last three
(3) years was 40%

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 3

VIEW

Step by step

Solved in 3 steps with 1 images

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

Please answer asap. The net capital gain and/or qualified dividend income (QDI) may be made up of various tax layers. Please indicate the correct order for how the layers are taxed: The 0% portion of the 0/15/20% gain and/or QDI The 15% portion of the 0/15/20% gain and/or QDI Any 28% gain Any 25% gain Ordinary income The 20% portion of the 0/15/20% gain and/or QDI For each layer, the ordinary rate and the alternative rate should be compared, and the lower of the two generally applies. True False
Which of the following is true concerning dividends? a. Foreign dividends are included in income at their pre-withholding-tax amounts for tax purposes. b. Dividends received from a CCPC's business income that is not subject to the small business deduction are typically grossed-up to include 115% of the dividend. c. Dividends received a CCPC's business income that is subject to the small business deduction are typically grossed-up to include 138% of the dividend. d. Eligible dividends require a 115% gross up.
A company as a tax entity will___________. Select one: a. pay either companies tax or secondary tax on companies b. be exempt from value added tax if secondary tax on companies was paid in that cycle c. be taxed according to scale based on income d. have to register as a provisional taxpayer
8. This dividend is subject to normal income tax a. Dividend received by a domestic corporation from another domestic corporation. b. Dividend received by a resident foreign corporation from a domestic corporation. 'C: Dividend received-by a domestic corporation from a resident foreign corporation: d. Dividend received by resident citizen from a domestic corporation. CS Scanned with CamScanner
5. Assume Rosas Company is a resident foreign corporation using OSD, determine the amount of OSD to be used to arrive at Net Income before tax.
1.) Which of the following is tax exempt for a domestic corporation? a. business income derived from abroad b. dividend from a domestic corporation c. monetary benefit from deposit substitute 2.) Which of the following types of income is/are not returnable a. Professional Income b. Business Income c. Compensation Income d. Capital Gains
Compute the income tax due if Sandbox Corporation which is an MSME domestic corporation reported the following gross income and expenses in 2021: A.Using the same data in the previous question, what is the income tax due if Sandbox is a resident foreign corporation? B.Using the same data in the previous question, what is the income tax due if Sandbox is a non-resident foreign corporation? C.Using the same data in the previous question, what is the income tax due if Sandbox is a private proprietary educational institution?
Which is a correct statement? * Gains between related parties are exempt from income tax Losses between related parties are deductible Gains between related parties are taxable All of the above Which is a deductible tax expense? * Surcharges and penalties O Stock transaction tax Real property tax on business properties O Special assessment
What is the final tax rate of dividend income earned by a domestic corporation from another domestic corporation? A. 10% B. 20% C. 30% D. None
Calculate the Corporation Tax Liability of Full Tax Co. for Y/A: 20212. Using the Barbados Income Tax Act or any other relevant document explain the treatment of the items included or omitted from the income tax computation.
On each transaction below, determine the tax type whether it is subject to Basic Income Tax (BIT), Final Withholding Tax (FWT) or Exempt (E) from income tax. On the tax rate column, write the respective rates of the tax type from 0% to 32% , Exempt or Graduated Tax Rate (GTR).
If qualified dividends are part of taxable income how do you find the tax liability? Do you have to tax them separately, and at what rates?