J. Premium offers outstanding- Current Liability K. Discount notes payable- Current Liability L. Employee payroll deductions unremitted- Current Liability M. Current maturities of long-term debts to be paid from current assets- Current Liability N. Cash dividends declared but unpaid- Current Liability O. Dividends in arrears on preferred stock- Footnote disclosure P. Loans from officers- Current Liability 13-2. Accounts and Notes Payable * The following are selected 2012 transactions of Darby Corporation. Sept. 1 | Purchased inventory from Orion Company on account for $50,000.
The first safe harbor rule states that as long as the taxpayers quarterly payments equals 90% of what is due on the tax return they can escape a penalty. The second safe harbor allows the taxpayer to avoid a penalty as long as they pay 100% of the amount from the previous year’s tax return. If the taxpayer’s AGI exceeds $150,000, they must pay 110% of the previous year’s return. Chapter 3 (5 pts) Above-the-line, or For AGI deductions, are taken out before your AGI is calculated. Above- the-line deductions include alimony, student loan interest, and moving expenses.
Through dedicated payroll taxes called Federal Insurance Contribution Act (FICA) this was funded. Old age, survivors, and disability insurance (OASDI) or retirement, survivors, and disability insurance (RSDI) are sometimes abbreviated and this is the main part of the Social Security Program. Approximately 85 cents of every dollar of Social Security tax received goes to the OASI fund and about 15 cents of every dollar collected goes to the DI fund for disability. Administrative costs amount to less than one percent of taxes collected. Social Security is a safety net protecting American workers and his or her families for retirement, disability, and early death.
b. How is the $25,000 treated for purposes of federal tax income? The $25,000 will have to be treated as an expense. c. What is your determination regarding reducing the taxable amount of income for both (a) and (b) above? I have determined that you have to account for all qualified business expenses and only net income will be taxable.
Give at least two examples of types of state taxes. (1.0 points) Social Security taxes and Federal Insurance Contributions Act (FICA) tax. 5. What is a pay stub? (0.5 points) Each time a company pays you, you'll receive a short summary of the amount of your gross pay, and the amount of payroll withholding for that pay period Lesson 3 (3.0 points) 1.
7-20 47. An NOL carryforward is used in determining the current year’s NOL. ANS: F An NOL carryforward is not used in determining the current year’s NOL. PTS: 1 REF: p. 7-21 48. The excess of nonbusiness capital losses over nonbusiness capital gains must be added to taxable income to compute the net operating loss of an individual.
4. Give at least two examples of types of state taxes. (1.0 points) a) State income taxes b) Transaction taxes 5. What is a pay stub? (0.5 points) A pay stub is a record of the hours you’ve worked or your salary an vacation times and then also your final pay.
* Question 1 Your answer is correct. The following defined pension data of Rydell Corp. apply to the year 2012. Projected benefit obligation, 1/1/12 (before amendment) $566,400 Plan assets, 1/1/12 545,900 Pension liability 20,500 On January 1, 2012, Rydell Corp., through plan amendment, grants prior service benefits having a present value of 121,900 Settlement rate 9 % Service cost 58,500 Contributions (funding) 66,900 Actual (expected) return on plan assets 60,300 Benefits paid to retirees 40,200 Prior service cost amortization for 2012 20,800 For 2012, prepare a pension worksheet for Rydell Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts.
The cash flow statement summarizes actual inflows and outflows of cash during a given time period. The cash flow statement is a report of your spending patterns and can be used to create budget amounts for various expense categories. (pp. 83-86) Exercise (20 points) Based on the following data, would Ann and Carl Wilton receive a refund or owe additional taxes? Adjusted gross income, $46,186 Itemized deductions, $11,420 Child care tax credit, $80 Federal income tax withheld, $4,784 Amount for personal exemptions, $6,800 Average tax rate on taxable income, 15% Taxable income would be $27,966 ($46,186 - $11,420 - $6,800) times the average tax rate of 15 percent equals $4,195 less a tax credit of $80 gives a tax liability of $4,115.
The Internal Revenue Service says that the administration costs should be lower then more complex plans (SEP). The way the Simplified Employee Pension plan works is that the employer would open individual retirement accounts for each employee and themselves and have those accounts titled SEP IRA (Retirement Plans, Benefits and Savings.). Unlike the 401(k) plan where the maximum contribution limit is 20% of a persons pay the Simplied Employee Pension plan allows for a