In 2020, Mr. Pacino was employed as accountofficer in a non-life insurance company. Hereceived P8,000 basic monthly salary. Inaddition, he gets 5% of gross premium ascommission on policies issued under hisaccount. In 2020, gross premiums under hisaccount totaled P4.2 million. He is likewiseentitled to representation allowance ofP1,000 a month. How much is to be includedas gross income in 2020?Select one:а. Р318,000b. exemptС. Р306,000d. P96,000

Given information is: Basic Salary = 8000 per month Gross premium in 2020 = 42,00,000 Commission =…

Answered: P1,000 a month. How much is to be…

P1,000 a month. How much is to be included as gross income in 2020? Select one: а. Р318,000 b. exempt с. Р306,000 d. P96,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter10: Deductions And Losses: Certain Itemized Deductions

Section: Chapter Questions

Problem 25P

See similar textbooks

Related questions

Q: Fiscal Year June 30, 2021 (5th yr) 2022 Sales 80,000,000.00 75,000,000.00 Cost of Sales…

A: Allowable deductions: Apart from the cost of sales, there are other operating expenses incurred…

Q: nstruction were as follows: n 1, 2020. $600,000 $1800,000 $1800,000 arch 31,2021. $1800,000…

A: A... Weighted Average Expense Jan2 = Time in Month taken / Total Month x Expense of Asset…

Q: What interest was earned if P500 500 is invested at 10 1/2% from October 20, 2019 to March 20, 2020?…

A: Solution: Amount invested = P500,500 Interest rate = 10.5% Period invested = Oct 20, 2019 to March…

Q: 93.000. The CCA rate for this asset is 32% The asset's useful life is two years after which it will…

A: Less refers to the owner of an asset who leases it out to a lessor in return for some interest.

Q: What is the 'UNLEVERED PROFIT AFTER TAX' in the year 2019? Rs. 0.41 million Rs. 0.51 million Rs.…

A: Given, For 2019 Profit before interest and taxes = Rs 0.76 Mn Corporate tax = Rs 0.25 Mn

Q: 2018 2019 Revenues $ 995 $1,073 800 840 Expenses Pretax accounting income (income statement) Taxable…

A: Solution 2: Tax schedule showing reconciliation between pre tax financial income, taxable income,…

Q: Find the ordinary and exact interest respectively of Php 40,000 at 3 1/2% from January 22, 2020 to…

A: GIven, Amount = php 40,000 Duration = January 22, 2020 to July 7, 2022 = 897 Rate of Interest =3.5%…

Q: How much interest is earned at 2-% if an amount of P10,500 was invested on October 3, 2021 and will…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Bebe Co. purchased equipment costing P560,000 on March 5, 2021. How much would be the claimable…

A: Value Added Tax(VAT)-:It is a value-added tax, understood in a few countries as a product and…

Q: E10.7 (LO 1) Allison Hardware Ltd.'s payroll for November 2020 is €200.000. The Social Security rate…

A: Social Security tax = Gross Earnings x Social Security tax rate = 200000*8% = 16000

Q: What amount of gross profit on sale should be recognized for the year ended December 31, 2020? a…

A: Gross profit represents the profit that remains after production costs have been subtracted from…

Q: 10% VAT will be deducted from the sale worth 800 TL. Calculate the tax amount. A) 80 B) 20 C)…

A: Tax is a financial charge levied by the government of a country for the purpose of generating funds…

Q: t had an estimated u P60,000 in success g of 2019. the compa: Ee of its original paten

A: The carrying value computation as,

Q: Bebe Co. purchased equipment with an invoice price of P1,680,000 on March 5, 2021. How much would be…

A: Value Added Tax(VAT)-:It is a value-added tax, understood in a few countries as a product and…

Q: own payment: 20% nstallment sales: P545, 000 in 2020, P785,000 in 2021, and P968,000 in 2022 Markup…

A: Realized gross profit on instalment basis is equal to the amount of cash collected X gross profit %…

Q: 00,000 d revenue from subscri

A: The deferred revenues from subscriptions account accounts for subscription fees which was received…

Q: From the information given below Calculate the amount to be maintained as Legal Reserve for the year…

A: In general, reserve accounting refers to the company's accumulated profits throughout the time that…

Q: On anuary t2023, piantaets net ere 5190 000 and un Decenbera1, 2023. piert ets eae S0.000 Depreaton…

A: Assets acquired during the year can be calculated by adding up the closing balance of Assets,…

Q: Fiscal Year June 30, 2021 (5th yr) 2022 Sales 80,000,000.00 75,000,000.00 Cost of Sales…

A: Net gain is the last pay that is received by the representative from the business subsequent to…

Q: corrected profit for the following year

A: Corrected profit for the year = Reported net income - Overstatement in ending inventory

Q: prainary payments of P1, 000 if interest rate is 1: annually. A P15,257.90 B P33,567.21

A: Ordinary annuities are a series of equal payments made at the end of each period for a specific time…

Q: 020 Ming Xo Inc. generated taxable income of $420,000 and incurred expenses of $490,000. What is the…

A: Remittance is defined as any money transferred from one party to another in the form of a bill,…

Q: What was the invested on July 29, 2021 if it amounted to P130 300 on March 6, 2022 at 2%?. Use the…

A: The banker's rule is based on a 360-day year, but you use the actual number of days in the term when…

Q: What amount should be recognized as depletion for 2021? a. 1,344,000 b. 1,920,000 1,200,000 d.…

A: calculation of depletion expenses for 2021 are as follows:

Q: Sheridan Companyreported the following items for 2019 Income tax expense $54000 Contribution margin…

A: Controllable margin = Contribution margin - Controllable fixed costs

Q: How much is the salaries expense to be recognized in 2018? P80,000 P100.000 c. P180,000 d. P300.000

A: The fair value at grant date i.e P30 will be taken for expense calculation. The share options will…

Q: 1. January 1, 2020? a. 6,000,000 b. 5,000,000 c. 5,494,500 d. 3,850,000 2. What is the gain on…

A: Prevent value: Present value is the sum of the current value of money of future cash flows. It is…

Q: 1. What amount should be recognized as investment income for 2021 as a result of the investment? a.…

A: Investment refers to those mechanism which is used by the company for the purpose of generating…

Q: *see attached What amount of interest income should be recognized by Ripple for the year ended…

A: Lease means giving out the assets by lessor to lessee to use that assets in return of rent.…

Q: or 2021 and 2022 are as follows: 2021 Cost Retail $39,000 $ 52,000 96,920 114,000 2,600 13,000

A: Cost of goods sold refers to the concept of computing the expenses involved while producing and…

Q: What is the revenue earned from award credits for 2022? *see attached a. P 0 b. P 28,000 c. P…

A: Given, Total Sales for 3 years = P 2,800,000 Actual Warranty Expenditure = P 136,000 Total expected…

Q: P30,000 70,000 40,000 10,000 Advances for future services to be rendered Collections for past…

A: Given: Advances for future Services = P30,000 Collection for past services = P 70,000 Reimbursement…

Q: 2020 2019 Net sales.. P2,200,000 P2,000,000 Total Expenses. 1,998,000 1,800,000 Required:

A: Formula: Difference amount = 2020 value - 2019 value

Q: On January 1, 2022, Charis Company adopted a plan anuary 1, 2026 at an estimated cost of P20,000,000…

A: In this question, we have to find out the annual deposit to the fund.

Q: uring company are givern as T8llowing. Nel Sal equals to 32000 for the year 2020 and 28000 dollars…

A: PARTICULAR 2020 2019 net sales 32,000 28,000 COGS 24,000 21,000 operating income 4300 3800…

Q: What is Luther's net working capital in 2018? OA $27 million OB. $63.6 million C. $12 million OD $39…

A: Working capital is the excess of current assets over current liabilities. It indicates the liquidity…

Q: What is the interest expense for 2020? A. P1,800,000 B. P1,200,000 C. P1,600,000 D. P1,000,000

Q: supplement contains 342,100. Suppose $300,0 used to estabiish thát earns 070, quarteriy, and pays…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: a fair value of P5,960,000. What is the compound journal entry to update the carrying value of the…

Q: please all parts Find the following accumulated values on December 31, 2020 a) $6000 invested on…

A: Compounding is a technique through which future value of present amount is computed at fixed rate.

Q: If the tax rate is 21%, determine the Free Cash Flow for 2020 2019 2020 2019 2020 書 Net sales Cost…

A: Cash flow statement: It is a statement which reports the cash inflows and outflows of a business…

Q: pense of $59,000 for 2024. The company provides the followim anse)

A: FICA Medicare taxes payable = $59000×1.45% =$855.50 =$856 rounded to nearest cent.

Q: . In January 2021, ABC Inc. paid property taxes on its factory building for the calendar year 2021…

A: Solution: Property taxes are paid for whole year in Jan'21, however its benefits will be available…

Q: How many units of Product Excellence would have to be sold in October 2021 in order to generate an…

A: solution first let us calculate the existing details Sales units 5000 Total sales 200000…

Q: P. php1,000.00 R. 10% T. 3yrs I.? F.?

A: The future value of a cash flow is the future worth of a cash flow at a certain rate of interest and…

Q: 6 tmpioyees during 20x1 totaled P750,000.- How much is the retirement benefits expense in 20x1? a.…

A: A retirement benefit plan involves annual contributions form the employer to the retirement fund.…

Q: Fiscal Year June 30, 2021 (5th yr) 2022 2023 Sales 81,000,000.00 75,000,000.00 86,000,000.00 Cost of…

A: Solution: Particulars 2021 2022 2023 Sales 81000000 75000000 86000000 Less: Cost of Sales…

Q: What amount was recognized as actuarial gain on PBO during the year? 100 000 200 000 240 000 0…

A: Introduction As per relevant IAS, Employee benefit if there is any loss or gain in defined benefit…

Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

In 2020, Mr. Pacino was employed as account
officer in a non-life insurance company. He
received P8,000 basic monthly salary. In
addition, he gets 5% of gross premium as
commission on policies issued under his
account. In 2020, gross premiums under his
account totaled P4.2 million. He is likewise
entitled to representation allowance of
P1,000 a month. How much is to be included
as gross income in 2020?
Select one:
а. Р318,000
b. exempt
С. Р306,000
d. P96,000

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

A call center agent receiving a monthly salary of P21,000 with mandatory annual deductions of P15,166, which includes SSS, PhilHealth, and Pag-Ibig contributions. What will be the amount for his annual gross income?
B is a newly hired employee (November 2021) and has a monthly compensation package of a basic pay amounting to P20,000. How much will be deducted from his gross salary for his monthly SSS premium contribution? PhP2,630.00 PhP900.00 Php800.00 PhP2,430.00
In 2014, Mr. Pacino was employed as account officer in a non-life insurance company. He received P8,000 basic monthly salary. In addition, he gets 5% of gross premium a commission on policies issued under his account. In 2014, gross premiums under hie account totaled P4.2 million. He is likewise entitled to representation allowance of P1,000 a month. 1. How much is to be included as gross income in 2014? ь. Рзо6,000 c. P318,000 d. exempt a. P96,000
Frederick Grant is employed by Jabex Ltd as an Engineer. He earns 270,000 per month as a gross salary. the company has an approval pension scheme to which he contributes 5 % of his salary. He also has a car loan payment of $25,000 per month. Calaulate Fredrick Grant income tax computation and net pay for the month April 2019
A call center agent receiving a monthly salary of P21,000 with mandatory annual deductions of P15,166, which includes SSS, PHILHEALTH, and Pag-ibig contributions. What will be the annual gross income?
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?
A private employee had the following remuneration in 2019: Gross salaries, net of P11,000 mandatory contribution P314,000 12,000 24,000 28,000 5,000 8,000 Fixed RATA COLA 13th month pay Christmas gift Laundry allowance (P500/month) What is the taxable compensation income?
Pat Maninen earns a gross salary of $4,000 each week. Assume a rate of 6.2% on $128,400 for Social Security and 1.45% for Medicare. a. What are Pat's first week's deductions for Social Security and Medicare? (Round your answers to the nearest cent.) Deductions Social Security Medicare b. Will any of Pat's wages be exempt from Social Security and Medicare for the calendar year? (Leave no cells blank - be certain to enter "O" wherever required.) Social Security Medicare
6. An employee, who had been with the company for 6 years, passed away on August 31, 2021. She had been earning a monthly salary of $5,900 and had regular CPP and El deductions taken off this salary on every cheque up to and including her August 31 payment. Calculate: a) Her maximum CPP contribution for the year. b) How much should be refunded to her estate, if any? cpp rate 5.45% cpp annual basic exemption $3,500 maximum insurable earnings $56,300 premium rate 1.58% Maximum annual employee premium $889.54
Cory Hunter's earnings are subject to deductions for Social Security, Medicare, and FIT. To date his cumulative earnings are $110,000. This week Cory earns $2,000. Cory, who is married, is paid weekly and files jointly. Assume the Social Security rate is 6.2% on a maximum of $ 142,800 and 1.45% for Medicare. Use percentage method to calculate FIT. His net pay for the week is ? A $1, 956.17 B $2, 036.60 C $1, 672.60 D $2,031.70
In 2020, the amount of FICA (Social Security) amount due is_6.2_% on the first $137,700 earned for the calendar year. In2020, the amount of Medicare due is_0.9%_on all wages earned for the calendar year. Use the Worksheet Below to Calculate the Social Security and Medicare expenses due for each Self Employed Business Owner. Annual Wages Earned Annual Social Security Due Annual Medicare Contribution Due 1 $ 10,650 $25,500 $5,500 $18,300 $20,300 $120,000 $140,000 $225,000 $8,500 $257,000 2 3 4 5 7 8 10 Calculate: Self-Employed Taxes Owe for Business Owners. Use the Tax Table (brackets) to calculate the amount of Taxes each Business Owner will have to pay. MARRIED FILING so - $19,400 HEAD OF RATE SINGLE HOUSEHOL So - $13,850 10% SO - $9,700 12% $9,700 s39,475 $19,400 $78,950 $13,850 $52,850 22% S39,475 - S84,200 S78,950 - $168,400 $52,850 - S84,200 24% S84,200 - $160,725 S160,400 - $321,450 s84,200 - $160,700 S160,725 - $204,100 S321,450 - $408,200 S160,700 - $204,100 32% 35% $204,100 -…
Thuy worked as the assistant manager at Burger Crown through August 2020 and received wages of $81,000. Thuy then worked at Up and Down Burger starting in September of 2020 and received wages of $61,500. Calculate the amount of Thuy's overpayment of Social Security taxes that she should report on her 2020 Form 1040. Round your answer to two decimal places.$fill in the blank 1