Answered: Statement1: The sale of a residential…

Statement1: The sale of a residential dwilling by a non-dealer is subject to VAT if the selling price per unit does not exceed P3,199,200

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter26: Tax Practice And Ethics

Section: Chapter Questions

Problem 10DQ

See similar textbooks

Related questions

Q: ake-or-Buy, Traditional Analysis ehner Company is currently manufacturing Part ABS-43, producing…

A: Make cost is the cost to produce the product internally. Buy cost is the cost to purchase the…

Q: . _______ A written order for a bank or other financial institution to pay a stated dollar amount to…

A: Money is very useful and important medium of exchange being used by two parties. If one party…

Q: Income channeled into a Roth IRA will be particularly attractive to those with high incomes…

A: Roth IRA A Roth IRA refers to the individual retirement account that allowed qualified withdrawals…

Q: Evilene makes flying brooms. She has characterized the company's costs below. Indicate in the shaded…

A: Cost Classification: Inventory Manufacturing and Selling Cost can be classified into following…

Q: Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and…

A: Lets understand the basics. For calculating target sales unit to achieve target profit, we need to…

Q: Unrealized profit on ending inventory A.will always be paired with a realized profit on beginning…

A: Inventory is the asset reported under the head current asset on the balance sheet of the company. It…

Q: Which of the following is true? • Depreciation cost is always product cost • Depreciation cost is…

A: An entity may either calculate its net profit through marginal costing or absorption costing…

Q: Use the template below to prepare the Operating Cash Flows section of Brace's Statement of Cash…

A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…

Q: Martinez Furniture started construction of a combination office and warehouse building for its own…

A: Long term debt is that kind of debt which is presented differently from short term debt and also…

Q: Suppose that a nation decides to introduce a new income tax system with the tax brackets shown in…

A: Tax is an important source of revenue to the government.There are two types of taxes namely, direct…

Q: please find the correct answer with explanation. i really don't kno

A: when the partner contributes property, their basis is increased by the partner's tax basis in the…

Q: Net cash provided by operating activities Net cash provided by investing activities Net cash flow…

A: The cash flow statement is prepared to record cash flow from various activities during the period…

Q: Projected sales Projected variable costs Projected fixed costs Projected unit sales price 60,000…

A: Degree of operating leverage (DOL): DOL reflects variable and fixed cost relationship of an…

Q: True or False Product cost under Variable costing are DM, DL and VOH only. Under absorption…

A: Solution:- Discussions of above statements as follows under:-

Q: An audit trail is a step-by-step record by which accounting data can be traced to its source.…

A: Vouching refers to checking the business transactions with their respective source documents.

Q: 13. Use the same information given in Problem 12. How much compensation expense should be recorded…

A: Compensation expenses in case of share appreciation right means the amount of expenses to be borne…

Q: Question (1) Draw up W Pentecost's complete Statement of financial Position from the following…

A: Statement of financial position shows all assets, liabilities and equity balance of the business.…

Q: 1. The PowerPoint Corporation has two classes of share capital outstanding: 9% (dividend rate), P20…

A: A share split is a situation in which the management of the company increases the number of shares…

Q: 3: An employee works 50 hours (50-40 were overtime hours) during a workweek in December of 2021, He…

A: Taxable Income: It is the base income upon which tax is levied and includes a few items of income…

Q: Weighted Average Shares At the beginning of 2019, Hardin Company had 330,000 shares of $10 par…

A: A corporation's shares are units of equity ownership. Shares exist as a financial asset for some…

Q: Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and…

A: Formula: Units to be sold to reach target income = ( Fixed cost + target profit ) / Unit…

Q: Tyler Hawes and Piper Albright formed a partnership, investing $210,000 and $70,000, respectively.…

A: Introduction: Partnership: Its an agreement between two or more partners for forming a business and…

Q: The PowerPoint Corporation has two classes of share capital outstanding: 9% (dividend rate), P20…

A: Ordinary shares- Ordinary shares, also known as common shares, are stocks sold on community barter.…

Q: Computer equipment (office equipment) purchased 6 1/2 years ago for $170,000, with an estimated life…

A: Working Note: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) /…

Q: What do you think is the greatest advantage of accounting professionals over those in other…

A: Accounting Professional: The accounting profession includes professionals who execute accounting…

Q: An entity, a grocery retailer, operates a customer loyalty program. The entity grants program…

A: revenue during 2022 Particulars Amount Sales from stand alone selling price 7000000 Add:…

Q: What effect does the increase in fixed costs have on the break-even units? 1. Decrease 2. Increase…

A: Introduction: Break even units: The point where there is no profit nor loss for the units sold.…

Q: 31. 2021 April 1 Arranged a short-term line of credit with Belize Bank amounting to $20,000,000 at…

A: Journal entries The act of recording or keeping track of any financial or non-financial action is…

Q: 8. (13) DK company has its Branch at Gorakhpur. Goods are invoiced to this Branch at 20% profit on…

A: Head office means from where the company mainly operate and all branches are controlled from that…

Q: a. What interest rate would make it worthwhile to incur a compensating balance of $16,000 in order…

A: The compensating balance is the bare minimum that the borrower agrees to retain with the lender; it…

Q: Of the 12,000 units produced by Hirofumi Company during April 2022, 10,000 units were sold at P50…

A: Working: Total variable costs = Materials + Direct labor + Variable factory overhead = P80,000 +…

Q: med annual salaries $65,000, $70,000, $75,000, $80,000, and $85,000, pectively. Under Harris 's…

A: The retirement benefits depends on the number of years in service and some percentage of salary of…

Q: Audit quality has been in the hot seat in recent times as the registered company auditors had not…

A: To maintain, regulate, and improve the standards of accounting and auditing and to look after the…

Q: ance that the entity will be required to pay damages of P1 million (the amount that was recently…

A: The discounted provision refers to the format of accounting entry that evaluates the amount of…

Q: 4. Should the management of a company purposely alter its Depreciation estimates for the sole…

A: financial statement are considered to be statements that produce and present the companies current…

Q: Income statement and balance sheet

A: Income statement and balance sheet are two important financial statements which are prepared for the…

Q: The accounts and balances shown below were taken from Unique Low Company's trial balance on December…

A: A Balance sheet is an important part of any organisation as it shows the the company's true face in…

Q: . _______ An invoice in the amount of $200 carries cash terms of “2/10, net 30.” If the buyer takes…

A: Credit terms 2/10, net 30 means if payment is being made in 10 days, then 10% discount will be…

Q: a. Compute the maximum depreciation deduction that Redwood can take in 2021 and igen 2022 on each of…

A: Item Cost Year of acquisition Year of Property Sec 179 deduction (half) Balance Depreciation rate…

Q: On January 1, 2021, Ocean Corporation issued 3,000 of its 5-year, P1,000 face value, 11% bonds dated…

Q: Ratios Compared with Industry Averages Because you own the common stock of Phantom Corporation, a…

A: Current Ratio:- It is the liquidity ratio that measures the company's ability to meet its short-term…

Q: A purchase invoice shows 10 items priced at $120 less trade discount 20%. A cash discount of 2%2% is…

A: Formula: Amount paid = Invoice amount - Discount amount

Q: In 2005 waste from Flash Limited destroyed a section of Fletcher’s Land. Members of the community…

Q: Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to…

A: Costs to be capitalised are total costs incurred on acquisition or purchase of fixed assets and all…

Q: Journalize the following transaction in Balance Sheet Approach, prepare worksheet and financial…

A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…

Q: Sales (all on account) Cost of goods sold Gross margin Selling and administrative expense Net…

A: Return on total asset is a financial measure to calculate the net income earned by the company…

Q: Sofia won P700,000 in a raffle. She invests her winnings at 9% compounded quarterly with the…

A: The future value of P700,000 compounded quarterly at 9% for two years would be divided by present…

Q: The consolidated balance of fixed assets will be affected by working paper entries involving all of…

A: Consolidation is the process where the parent company merges the financial statements of its…

Q: PROBLEM 1 On January 1, 2017, Carly Fashions Inc. enters into a contract with a regional retail…

A: Accounting for Contract Modifications If a change in an entity’s contract with a customer…

Q: Transaction: Possible source document: Business sells goods or services for cash…

A: GIVEN Transaction: Possible source document: Business sells goods or services for…

Concept explainers

Motor Vehicle Insurance

Motor vehicle insurance is a contract between the insurance company that provides insurance cover and the person who owns the vehicle. According to the terms and conditions of the insurance contract, the insurance company reimburses the policyholder for losses and damages. This insurance policy covers the financial risks of the motor vehicle owner. Electronic vehicles are also covered in a vehicle insurance policy, but the insurance rate is relatively higher than other motor vehicle insurance. Motor vehicle insurance is otherwise called an automotive insurance policy.

Question

Statement1: The sale of a residential dwilling by a non-dealer is subject to VAT if the selling price per unit does not exceed P3,199,200

Statement2: The leasing ot residential units is exempt from VAT if the annual rentals do not exceed P15,000 per unit

a. Both Statements are false

b. Both Statements are true

c. Statement 1 is true while Statement 2 is false

d. Statement 1 is false while Statement 2 is true

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

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

The key difference between rental income assessed under S10(1)(a) and S10(1)(f) is: a. The S10(1)(a) rental loss can be offset with other rental income b. The S10(1)(a) is not eligible for capital allowances c. The S10(1)(a) loss will be disregarded d. There is no difference between them
Statement I. If the pattern of the repairs cannot be established and the obligation for warranty cannot be reasonably estimated, warranty costs are recorded as expense when repairs are actually made, thus there is no accrual of liability.Statement II. The transaction price for the sale of the product with warranty is allocated between the stand-alone selling prices of the product and warranty. A. Both statements are true. B. Both statements are false. C. Statement I is true; Statement II is false. D. Statement I is false; Statement II is true.
Which statement/s islare true? S1 In accordance with the accrual assumption, the full amount of the premium is recognized immediately as income when received; instead, the premium is normally regarded as being earned evenly over the period of the policy. S2 ABC, a manufacturer of appliances, approved to insure a customer for any loss or damage that the customer may incur from the use of a purchased appliance which is covered under PFRS 17. S3 Under insurance contract, the party that has a right to compensation if the insured event occurs is referred to as the insurer.
TRUE OR FALSE. If the statement is INCORRECT, explain why the statement is INCORRECT. 1. Under CIF, the seller agrees to pay in lump sum or installment, the cost of the goods, insurance and freight charges.
S1: PFRS 17 allows and insurer to change its accounting policies for insurance contract only if, as a result of its financial statements present information that is more relevant. S2: Outward Reinsurance is where the premium and commission shall be accounted for in the different accounting period original policy to which the reinsurance relates. $3: Premium deficiency arises when the unearned premium reserve is less than the estimated claims related expenses. Only S3 is correct O All statements are correct Only S1 is correct Only S1 is incorrect Only S2 is correct Only S3 is incorrect All statements are incorrect Only S2 is incorrect
An item that is not a contingent liability is: A. premium offer to customers for labels or box tops. B. accommodation endorsement on customer note. C. additional compensation that may be payable on a dispute now being arbitrated. D. note receivable discounted. A loss contingency that should be accrued is: A. note receivable discounted. B. pending lawsuit C. tax in dispute D. estimated claim under a service warranty on new products sold.
Gross selling price includes: I. the amount of the seller's debt assumed by the buyer. II. the fair market value of services received by the seller from the buyer. Oa, Only statement II is correct. Ob. Only statement I is correct. Oc. Both statements are correct. Od. None of these statements are correct.
4. On January 01, 2012, PC Options sold equipment to PC Madness and simultaneously leased it back. Pertinent information at this date are presented below. In the initial entry upon leaseback, how much is the gain to be recognized by the buyer- lessor? * Sales price P 9,000,000 Fair value 8,000,000 Carrying amount 7,200,000 Annual rental payable at the end of each year 600,000 Remaining life 20 Lease term 4 Interest rate on the lease contract 12% Borrowing rate of PC Options 11% Borrowing rate of PC Madness 10.50% a. P800,000 b. P720,000 c. P400,000 d. P717,780
Statement 1 : In accordance with IFRS 15, in accounting for customer premiums, the transaction price at the time of sale is recognized partly as revenue which is related to sale of goods and partly as a liability for the performance obligation to settle the transfer of the promised premium.Statement 2: In accounting for customer premiums in accordance with IFRS 15, there is a premium expense equivalent to the cost of premiums recognized upon redemption of these premiums. True, True True, False False, False False, True
Define the following: Condition Civil loss Reciprocal obligations Pure obligation Potestative condition Problems Explain or state briefly the rule or reason for your answer. 1. D (debtor) borrowed P20,000 from C (creditor) payable on or before August 30. Before the arrival of the due date, C agreed to the promise of B to pay C if B wants. Can C insist that B pay not later than August 30? 2. Suppose in the same problem, D obliges himself to pay C P10,000 after C has paid his obligation to T. Is the obligation valid? 3. S (seller) agreed to sell to B (buyer) a specific car for P200,000, delivery of the car and the payment of the price to be made on June 15. Suppose S delivered the car on June 15 but B failed to pay the price, what are the remedies of S? 4. S sold a parcel of land to B for P240,000 payable in installments of P20,000 a year. The land was delivered to B who obtained ownership thereof. After B had paid P200,000, he could no longer continuing paying in view of…
25. What is the remedy available to vendor or lessor when the vendee or lessee fails to pay a single instalment or single periodic rental in an instalment sale or finance lease of personal property assuming a chattel mortgaged is constituted on the personal property sold or leased? Group of answer choices a. Exact fulfilment of the obligation with right to recovery for deficiency b. Cancel the instalment sale or finance lease resulting to mutual restitution c. Foreclose the chattel mortgage on the personal property sold or leased d. Any of the above
24. One of the following statements is false: * a. If the underlying asset will not revert to the lessor, the residual value is simply ignored by the lessor in the computation of unearned interest income and gross profit on the sale. b. The underlying asset will remain with the lessee if the lease provides for either a purchase option that is reasonably to be exercised or transfer of title to the lessee upon the lease expiration. c. When a lessor actually sells an asset that it has been leasing, the difference between the sales price and the carrying amount of the lease receivable is recognized in profit or loss. d. The gain or loss that pertains to the right retained by the seller- lessee in a sales and leaseback transaction is not recognized.