Determine how much tax Mr Smith should pay in total

Assignment Help Accounting Basics
Reference no: EM133028218

Question - John Smith owns a small construction company (100% ownership), which is organized as a corporate. The company had gross revenues of $300,000 in 2015, and business-related expenses (including the cost of materials, labor, equipment rentals, etc) were $90,000.

The personal expense of John Smith in 2015 was $10,000. He also had $7500 as the total personal exemptions and all deductions. Assume that all of his income comes from the salary paid by his own company, and he received $120,000 as a salary from his own company in 2015.

Required - Determine how much tax Mr. Smith should pay in total (including that for the company).

Reference no: EM133028218

Questions Cloud

What is the companies pre-tax cost of debt : If you have a bond outstanding with a coupon rate of 6.7% and semi annual payments, What is the companies pre-tax cost of debt
Calculate the number of paint sets in ending inventory : During the year, the store purchased 4 sets at $1.50. 5 sets at $2.20, 6 sets at $2.50, and 10 sets at $3.00. Calculate the number of paint sets
How does source confirm your personal values and beliefs : What challenges does the source raise when you consider your own personal values and beliefs and How does the source confirm your personal values and beliefs
Construct a strategy from which an investor can earn : Construct a strategy from which an investor can earn a riskless profit. Assume the 1-year forward price on the bond is $125
Determine how much tax Mr Smith should pay in total : The personal expense of John Smith in 2015 was $10,000. He also had $7500 as the total personal exemptions. Determine how much tax Mr Smith should pay in total
What is the accrual basis salaries expense : Unpaid employee's salaries were at P30,000 and P25,000 at the beginning and at the end of the year, respectively. What is the accrual basis salaries expense
Computer science and digital technologies project : Computer Science and Digital Technologies Project - explain the structure of the report so that the reader knows what issues are discussed where
Determine the sterling amount that the firm will pay : The firm decides to enter into appropriate forward exchange contracts through its bank to hedge these transactions. Determine the sterling amount that firm pay
When does the AB Partnership terminate : The partnership makes a single distribution of all the funds in this account on January 1, Year 2. When does the AB Partnership terminate

Reviews

Write a Review

Accounting Basics Questions & Answers

  Describe differences in amortization and depletion

On February 19 of the current year, Rock Chalk Co. pays $4,450,000 for land estimated to contain 5 million tons of recoverable ore.

  Determine the amount at which the investment in associate

Determine the amount at which the investment in associate will be carried in the statement of financial position of A Corp. at December 31, 20x2

  Compute sheridan minimum amortization of the actuarial loss

The average remaining service period of Sheridan's employees is 7.50 years. Compute Sheridan's minimum amortization of the actuarial loss

  Analyze the effect of both full-cost and variable-cost

Analyze the effect of both full-cost and variable-cost transfer pricing methods on Phipps' cash flows

  How much would profit change if it accepts the offer

Kasten, Inc. budgeted 10,000 widgets for production during 2010. Should Kasten accept the order? How much would profit change if it accepts the offer

  Overhead application working backwardthe towson

overhead application working backward.the towson manufacturing corporation applies overhead on the basis of machine

  Describe the process of creating a cash budget

What are the three primary causes of cash flow problems faced by a small business? Describe the process of creating a cash budget

  On january 2 2013 pod company purchased 25 of the

on january 2 2013 pod company purchased 25 of the outstanding common stock of jobs inc. and subsequently used the

  Detect intentional misstatements of liabilities

Hypothesize a scenario in which one could intentionally misstate liabilities for his or her personal financial gain. Recommend two (2) actions that companies can take to prevent or detect intentional misstatements of liabilities for personal finan..

  Compute ending inventory at cost using the dollar value

Compute ending inventory at cost using the dollar-value LIFO retail method.

  AC3310 Accounting Information Systems Skills with SAGE

AC3310 Accounting Information Systems Skills with SAGE and SAP ERP Assignment Help and Solution, Lancashire School of Business and Enterprise

  What is the highest price that talboe could pay the

what is the highest price that talboe could pay the outside supplier for each wheel and still be economically

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd