Rhaegar, a farmer, uses the crop-year method in reporting his income from long-term crops. The following data are relevant to his farming operations in 2018: a. 540,000b. 500,000c. 340,000d. 240,000e. Answer not given Sales of crops harvested, P800,000Expenses on harvested crops, P300,000Expenses on maturing crops, P200,000Expenses on newly planted crops, P100,000Sales of tree branches for firewood, P40,000Compute Juan's total income subject to tax.

Tax:- A tax is compulsory payment which is imposed by the government on the income and capital gains…

Rhaegar, a farmer, uses the crop-year method in reporting his income from long-term crops. The following data are relevant to his farming operations in 2018: a. 540,000 b. 500,000 c. 340,000 d. 240,000 e. Answer not given

Rhaegar, a farmer, uses the crop-year method in reporting his income from long-term crops. The following data are relevant to his farming operations in 2018: a. 540,000 b. 500,000 c. 340,000 d. 240,000 e. Answer not given

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 49P

See similar textbooks

Related questions

Q: At the time of his death in 2021, Donald owned a farm (a qualified, closely held business) with a…

A: A special use valuation method comes under section 2032A which explains that real property is to be…

Q: Dillon rented his personal residence at Lake Tahoe for 14 days while he was vacationing in Ireland.…

A: Itemized deductions: It is the amount of deduction that can lower the taxable income of individual…

Q: Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2021, she sells the…

A: Lets understand the basics. For calculating taxable income, we need to use below formula. Taxable…

Q: On July 1, 2017, Brent purchases a new automobile for $49,000. He uses the car 88% for business and…

A: As per our protocol we provide solution to the one question only or the first three sub-parts only…

Q: Gopal derived the following income for year 2020: (i) Interest income from loan to his company XYZ…

A: The answer is stated below:

Q: During the year 2020, Mr. Ahmed purchased goods for $ 500, 000 and sold 3/5th of the goods for $…

A: Net profit calculated by Mr. Ahmed is as per Matching concept. Matching concept: As per matching…

Q: A farmer purchased 245 acres of land for $4,900/acre. He paid 25% down and obtained a loan for the…

A: Loan amortization is the process of reimbursement of loan periodically by the borrower of the loan…

Q: ome for the remainder of the year. Rental income from the property was $6,500. Expenses associated…

A: Itemized deductions refer to the type of expense that can be subtracted from the total income earned…

Q: Rob Wriggle operates a small plumbing supplies business as a sole proprietor. In 2019, the plumbing…

A: A. What is Rob and Marie's taxable income before the QBI deduction? Particulars Amount ($)…

Q: Alex, single, earns wags of $42,000 in 2021. He also conducts an activity that produces the…

A: Taxable income is a concept that can be easily derived from its name, tax on income earned. Tax is…

Q: Timothy has been trading for many years preparing his accounts to 31 December each year. He decided…

A: Working notes :- As per UK tax rules the tax rates are as under -…

Q: After 3 years, Ka Leony sold a painting (capital asset) which he purchased in 2018 at a cost of…

A: Total sale price = 1000+1000+2000+4000+4000 =12000

Q: On July 1, 2016, Rex purchases a new automobile for $43,000. He uses the car 84% for business and…

A: Solution: Since Part A seems to be incomplete because the rate per mile is not given and should be…

Q: Donald owns a two-family home. He rents out the first floor and resides on the second floor. The…

A: The question seeks answer to what is deductible out of expenses listed

Q: In 2020, Britt drove her automobile 16,200 miles for business. She incurred $900 in gas expenses and…

Q: Sven operates a shop. During the 2020 tax year, he had on hand: $70,000 of trading stock on 1 July…

A: The profitability status of the company can be arrived from the income statement prepared by the…

Q: Nena invested real property in the year 2017 amounting to P 2,000,000. In 2018, the value of the…

A: Answer:- Income meaning:- Individuals and businesses get money, property, and other transfers of…

Q: Joye started her home business in 2020 and the results of her operations are given below. Gross…

A: Schedule C is used for business taxes. This is generally prepared as part of the personal tax…

Q: Owner Pedro invested an initial capital of amounting P50,000 in order to put up his janitorial…

A: Capital means the amount invested by the owner in its business. Net income increases capital…

Q: ax provided she opted to use the graduate rate?

A: Pay as you earn system or tax deduction at source in some countries are the advance tax payment…

Q: On 1 July 2019 Mary acquired a leather sofa for $23723. Mary borrowed $29,000 of the money from XYZ…

A: SOLUTION- NET CAPITAL GAIN = EXCESS OF THE GAINS FROM SALES OR EXCHANGES OF CAPITAL ASSETS OVER THE…

Q: Alex, single, earns wags of $42,000 in 2026. He also conducts an activity that produces the…

A: GIVEN Alex, single, earns wags of $42,000 in 2026. He also conducts an activity that produces…

Q: Calculate Gross Income For Della Douglass based on the following facts: (Provide an explanation for…

A: Gross income refers to total income computed from all the sources for an individual before any…

Q: 1. On March 10, 2021, Juan sold land (adjusted basis = $150,000) to Richard for its FMV of $130,000.…

A: Since the land was purcahsed in 2009 and sold in 2021, therefore the loss will be long term…

Q: X, Senior citizen, is engaged in business of selling product X. For 2017, Lolo X has a total sales…

A: Senior citizen is proprietor. in proprietorship business and the person operating the business is…

Q: On July 1, 2017, Brent purchases a new automobile for $37,000. He uses the car 92% for business and…

A: a). Calculation of basis adjustment for depreciation of each year. Year Miles Rate per miles…

Q: bob bought some lands costing $16,240. Today, that same land is valued at $46,517. how long has Bob…

A: Original Cost of Land = $16,240 Present Cost of Land = $46,517

Q: 2. Fauzana owns a business that makes and sells pets clay. During the financial year ended 31 July…

A: Introduction: Revenue expenditure: Expenditure spent for running the day to day business activities…

Q: What amount can Melanie claim this year for her office in the home deduction under the Regular…

A: Information Provided: Real Property Taxes = $3600 Interest on home mortgage = $3800 Operating exp =…

Q: Rob Wriggle operates a small plumbing supplies business as a sole proprietor. In 2019, the plumbing…

A: Dear student, as per Bartleby answering guidelines we can not answer more than three sub-parts if a…

Q: Rose works as a quality in-charge in an equipment manufacturing firm in the UK. During the tax year…

A: Tax liability is the dutiful debt you owe to the government from the amount of money of an…

Q: Gino is a computer programmer who earned $ 45,000 in 2019. But on January 1, 2020 he opened a…

A: Economic profit is the profit which is earned by the company when all the explicit as well as…

Q: Rob Wriggle operates a small plumbing supplies business as a sole proprietor. In 2019, the plumbing…

A: Given Information: Marie wage income: $250,000 Gross business income: $421,000 Business expenses:…

Q: The following data were taken from the records of a citizen decedent: Land inherited from his…

A: Estate Tax: When an individual transfers his/her property to the beneficiary person on his/her…

Q: I'm 2015, mary invested 200,000 in a business that is not a passive activity. During 2016, her share…

A: The question is based on the concept of Business Transaction Analysis.

Q: Rob Wriggle operates a small plumbing supplies business as a sole proprietor. In 2019, the plumbing…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: Calculate Gross Income For D Douglass based on the following facts: (Provide an explanation for why…

A: Gross income refers to total income computed from all the sources for an individual before any…

Q: On October 1, 2015,JOY inherited properties worth P 3,000,000 from her mother. The properties are…

A: Since he earned income from property inherited by him from her mother is P270000 ( Oct 1 to…

Q: Your client has occupied the residence she personally owns for four and a half years. The adjusted…

A: Amount realized by Kitty from sale of her house = $375,000 Selling expenses borne by her = $22,000…

Q: The date of death for a widow was 2018. If the estate was valued at $2,221,000 and the estate was…

A: The question is based on the concept of Taxation.

Q: Yolanda is a cash basis taxpayer with the following transactions during the year: Cash…

A: Business income:The income that is realized from the result of business activity is referred to as…

Q: Mr. Juan Dela Cruz operates a mini bakeshop while he offers cleaning services to his clients. In…

Q: Lisa Manoban, operates a pet shop at the same time, offers interior design services to her clients.…

A: Taxable income: It can be defined as the income earned by an individual or an entity that is…

Q: Bob is a farmer and is required to use the accrual method. At the beginning of the year, Bob has…

A: Accounting's goals include keeping a systematic record of all financial transactions in a book of…

Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

Rhaegar, a farmer, uses the crop-year method in reporting his income from long-term crops. The following data are relevant to his farming operations in 2018:

a. 540,000
b. 500,000
c. 340,000
d. 240,000
e. Answer not given

Sales of crops harvested, P800,000
Expenses on harvested crops, P300,000
Expenses on maturing crops, P200,000
Expenses on newly planted crops, P100,000
Sales of tree branches for firewood, P40,000
Compute Juan's total income subject to tax.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 answer

VIEW

Trending now

This is a popular solution!

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

Mahigos owns the following businesses: Annual Gross Receipts Annual Gross Sales Restaurant 1,350,000 1,000,000 Barbershop 625,000 600,000 Seller of marine food products 1,875,000 2,000,000 Purchases of goods from VAT suppliers totaled P1,200,000 (related to VAT business if applicable). How much is the VAT payable or percentage tax for the year? Group of answer choices P318,000 P108,000 P93,000 P48,000
The market value(P) of a property is $833,333.33 in a jurisdiction in which the assessment ratio is 60%. The property owner has just been granted a homestead exemption of $50,000. The property is in a jurisdiction in which the current budget is $9 billion of which 80% derives from property taxes. The gross assessed value of all taxable properties is $684,000,000,000. Calculate the owner’s property tax for the year
Which passive income is subject to regular tax? Dividend income from resident corporation P10,000 winnings Royalties from musical composition Interest on Peso bank deposit
A property is assessed at $135, 000. There is an equalization rate of 125%. The annual property tax are $5063. What is the tax rate? A). 30 mills B). 50 mills C). $4 per $100 D). 367 per $1,000
29. A VAT-taxpayer made the following sales during the year: P 100,000 Domestic Sales Export Sales 120,000 What is the amount subject to business tax? 30. In the immediately preceding problem, compute the Output VAT.
Taxable income Champ received a $27,600 distribution from NeatCo, a U.S. C corporation. NeatCo’s earnings and profits for the year totaled $16,560. How much dividend income does Champ recognize?
Net profit before tax will be: a. OMR 12,740,000 b. OMR 14,540,000 c. OMR 13,440,000 d. OMR 12,540,000 Operating profit for the year will be: a. OMR 15,540,000 b. OMR 10,360,000 c. OMR 15,340,000 d. OMR 13,540,000
How much is the amount reported as Other Income? Sale on Account to Government (VAT Inc) 672,000.00 Input VAT paid pertaining to the sale 32,000.00 5,000 10,000 Other:
. The municipal assessor was taxing an idle agricultural land consisting of 2 hectares valued at P 200 per square meter. If the idle land tax imposed is 5% by the ordinance, how much will the owner pay for the idle land tax?a. P 80,000.00 b. P 100,000.00 c. P 200,000 d. P 40,000.0011. The following data are shown on the tax declarations of a piece of land and th
A derived its income from its self-operated talpakan business. The details of his business for 2021 are as follows: Gross Receipts - P100,000.00 Operating Expenses - P50,000.00 Income taxes withheld in general - P10,000.00 Question: Assuming that the tax rate is 25%, what is the income tax payable of A? Group of answer choices P2,500.00 P12,500.00 P25,000.00 P15,000.00
Calculate the amount of property tax due: Tax rate Assessed value Amount of property tax due 40 mills $65,000
sir, the owner of a carving wood craft business with a gross income (turnover) of Rp.1,200,000,000.00 per year. Pak Sandi will pay taxes on his business based on the latest income tax collection regulations. The amount of income tax payable per year that must be paid is