Give the definition of the following term: Statutory Income.
Question:
Give the definition of the following term: Statutory Income.
Assessable Income:
Assessable income is the earnings by an individual/business entity. The income is taxable when it surpasses the threshold limit of income which is tax-free. The assessable income comprises ordinary and statutory income.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerStatutory income is a part of assessable income. Statutory income is income other than ordinary income. Ordinary income is earned by providing...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
How to Calculate Corporate Taxable Financial Income
from
Chapter 8 / Lesson 2
6.9K
Discover how to calculate the corporate taxable financial income for a business. Examine what corporate taxable income is, review gross income, view expenses and deductions, explore specially treated items, and see the relationship to accounting.
Related to this Question
- 1. Define the term "income," as defined by the courts. 2. Generally, when does a cash basis taxpayer realize income? 3. Generally, when does an accrual basis taxpayer realize income? 4. Define the
- The tax law refers to gross income, yet the term gross income is not found on Form 1040. Explain. Why is it important to understand the concept of gross income even though the term is not found on Form 1040?
- Minors are liable for higher rates of tax on "passive" or eligible income. Explain what this means including what is meant by the term "minor". Give some examples of types of eligible income.
- Indicate the key term that best matches the definition. Gross income from a trade or business regularly carried on by a tax-exempt organization. A. Unrelated business income B. Public charity C. Charitable solicitation D. Lobbying E. Debt financed income
- Which of the following is not a basic concept of income? A. psychic income B. real income C. money income D. gross income
- The income tax law established which of the following as a basis for taxation? A) Economic income B) Increase in wealth C) Business income D) Accounting income
- Explain the differences between taxable income and adjusted gross income.
- What is the relationship between assessable income, ordinary income and statutory income?
- Do all provisions of a tax act eventually end up in the Internal Revenue Code? Explain.
- Describe the statute of limitations for a tax return.
- Which of the following is not true regarding 'accounting income'? a. The term is one used on Form 1041 to refer to income as computed under the applicable principal and income act as modified by the trust document. b. This represents the amount that mu
- Fiduciary Accounting Income (FAI): a. refers to income received by personal representatives and trustees. b. rules trump Subchapter J rules on income taxation. c. is determined by federal law. d. cannot be accurately determined until the termination o
- Which of the following would be considered portfolio income? (a) Salary for part-time job (b) Dividends (c) Rental real estate income (d) Self-employment income for a business.
- In terms of tax reform policy, what do the following mean? a. Revenue neutrality. b. Pay-as-you-go or "pay-go". c. Sunset provision.
- Choose the answer that provides the best definition for the following statement. Each partner's basis in the partnership. A) Qualified business income deduction B) Outside basis C) Guaranteed payment D) Economic risk of loss
- In what circumstances will a compensation payment be regarded as taxable income?
- Explain a Federal Tax concept of The Netting Process of Longterm and Short-term capital gains/losses.
- Determine Betty's taxable income for the year given the following information:a. $55,200 b. $54,700 c. $49,700 d. $49,200
- What is the difference between pretax financial income and taxable income? Explain the meaning of temporary and permanent differences. Give at least two unique examples of each.
- What is the Net Investment Income Tax? Explain.
- "Effective income tax rates" a) are seldom considered by economists. b) cannot be accurately determined. c) have no legal meaning. d) refers to the average percentages of taxable income actually paid in taxes.
- What are the income tax allocation methods?
- Using the legend provided, classify the following statement: A= Tax avoidance E=Tax evasion N=Neither \\ Sam decided not to report interest income from a bank because the amount is only $11.75.
- Determine the comprehensive income for 2017.
- Choose the answer that provides the best definition for the following statement. Tax accounting calculation made by partner A) Qualified business income deduction B) Outside basis C) Guaranteed payment D) Economic risk of loss
- Do you think there is a difference between the legal forms of conducting a business and the principal Federal income tax forms of doing so? Explain briefly and broadly to answer.
- Do you think there is a difference between the legal forms of conducting a business and the principal federal income tax forms of doing so? Explain.
- The economic benefit doctrine and constructive receipt doctrine help set the lines of demarcation between what constitutes income when it must be recognized, and who must pay taxes on it. What is the
- Can multiple-step income statement tell what a company pays in income tax?
- Generally, which of the following does not correctly categorize the type of income? A. Rental real estate - passive income/loss B. Salary - active income/loss C. Dividends - portfolio income/loss D. Capital losses - passive income/loss
- The term "double taxation" refers to which of the following? A sole proprietorship must pay income taxes on its net income and the owner is also required to pay income taxes on withdrawals. In a partn
- Constructive receipt means the taxpayer has: A) Earned the income. B) Earned the income and accrued the income. C) Control of the income for his or her use. D) Accrued the income.
- Income may be realized in the form of: a. Property. b. Cash. c. Services. d. All of these.
- While vacationing, you find a $100 bill on the beach. No one saw you find it. Assuming the finding meets the definition of gross income. Would you report it as taxable income? Why or why not?
- How is taxable income computed?
- Determine the taxpayer's current-year (1) economic income and (2) gross income for tax purposes from the following events. a. Sam's employment contract as chief executive of a large corporation was te
- Determine the business entity that is being described by the following statement: 30% withholding tax on passive-type income (interest, dividends, etc.). a. ECI (Effectively Connected Income) b. FDAP (Fixed, Determinable, Annual and Periodic) c. FIRPTA (
- Is a defined benefit or a defined contribution plan better for an employee? for an employer?
- One class of deductions is variously described as deductions for AGI, above-the-line deductions, and page 1 deductions. Explain the meaning of the various designations.
- Under what conditions are alimony payments from divorces included in the recipient's gross income?
- The following is a partial year-end adjusted trial balance. Income tax expense has not yet been recorded. The income tax rate is 40%. a. Determine the operating income loss. b. Determine the income lo
- Use the information from the following single-step income statement to prepare a multistep income statement in proper form. Answer:
- What is the basis of inheritance for income tax purposes?
- Which of the following requires employers to deduct federal income tax from employee earnings? a. FUTA b. SUTA c. Fair Labor Standards Act d. Current Tax Payment Act
- For tax purposes, what is the significance of the classification of a taxpayer as an employee versus a self-employed independent contractor?
- Are SUTA taxes paid by the employer, the employee, or both? Explain.
- Determine Betty's adjusted gross income for the year given the following information: a. $92,500 b. $82,000 c. $76,500 d. $77,000
- Prepare an income statement for the year 2009.
- Determine the business entity that is being described by the following statement: A withholding tax on income that is effectively connected with a United States trade or business. a. ECI (Effectively Connected Income) b. FDAP (Fixed, Determinable, Annual
- Accountants who favor interperiod income tax allocation argue that income taxes are an expense rather than a distribution of earnings. Explain the significance of this argument. Do not explain the definitions of expense or distribution of earnings.
- Income earned but unpaid at the time of a decedent's death is deemed to be income in respect of a decedent (IRD). Which of the following statements concerning IRD is correct? a. The income must be reported on the decedent's final federal income tax retur
- Describe the tax and non-tax benefits of meals and lodging to the employee and employer.
- Determine if the statement describes deferred tax asset or deferred tax liability. Explain why. Rent revenue on the tax return is greater than financial statement rent revenue by $14,000.
- With regard to revenue rulings and revenue procedures, which of the following statements is false? A. A revenue ruling is a published official interpretation of tax law by the IRS that sets forth the conclusion of the IRS on how the tax law is applied to
- The characteristic "Tax Status of Income" applies to general partnerships, how?
- Explain the tax implications of compensation in the form of salary and wages from the perspectives of the employee and employer.
- Which of the following statements about alimony payments is true? A) To qualify as alimony, payments must be made in cash. B) Alimony payments are includible in the gross income of the recipient. C) To qualify as alimony, payments cannot continue after
- Explain the tax implications of compensation in the form of salary and wages from the perspective of the employee and employer.
- Has the taxpayer in the following situation received taxable income? If so, when should the income be recognized? Explain. John is unemployed. During the current year, he receives $4000 in unemployment benefits. Because the unemployment is not enough to
- What are the temporary differences between pretax financial income and taxable income? Provide examples of temporary differences.
- What income is deferred to a later year when computing taxable income but is included in E&P in the current year?
- Does taxable income of a corporation differ from pretax financial income because of permanent differences or temporary differences? Explain.
- Discuss and define the difference between employer payroll taxes and with holding deductions.
- Determine the amount of taxable income that should be reported by a cash-basis taxpayer in 2014 in the following case: A taxpayer is in the business of renting computers on a short-term basis. On December 1, 2014, she rents a computer for a $200 rental fe
- Which of the following would not appear on a multiple-step budgeted income statement? a. operating income. b. salaries payable. c. gross profit. d. income tax expense.
- Determine the amount of taxable income that should be reported by a cash-basis taxpayer in 2014 in the following case: A taxpayer has a business of renting computers on a short-term basis. On December 1, 2014, she rents a computer for a $200 rental fee an
- .Gross income is defined as all income you receive in the form of money, goods, property, and services that isn't exempt from tax. It also includes income from sources outside the United States or from the sale of your main home (even if you can exclude
- The following describes several different business organizations. Determine whether the description refers to a sole proprietorship, partnership, or corporation. a. A-1 pays its own income taxes and has two owners. b. Ownership of Zeller Company is divi
- To what extent, if at all, is the following expense deductible against assessable income: Fines and penalties.
- When Subchapter J refers to "income" this reference is to: a. fiduciary accounting income (FAI). b. gross taxable income. c. net taxable income. d. adjusted taxable income.
- What income is deferred to a later year when computing taxable income but is included in earnings and profits (E&P) in the current year?
- Classify the type of adjustment. Taxes owed but payable in the following period. (a) prepaid expense (b) unearned revenue (c) accrued revenue (d) accrued expense
- Consider the term distributable net income as it is used with respect to the Federal income taxation of trusts and estates. 1. How is this amount computed? 2. Where is it used in computing the parties' taxable incomes?
- What is a composite income tax return?
- Explain how to compute the ratio of income taxes to income (earnings) before taxes.
- Using the following corporate tax rate schedule given, perform the following: a) Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of corporate earnings
- Other revenue refers to all of the following except: a. salary and wages b. appropriations and grants c. income from investments d. revenue from contributions
- Classify each of the following as an operating, investing, or financing activity under ASPE. 1.Dividends paid to shareholders 2. Receipt of dividend income 3. Payment of salaries to employees 4. Payment of taxes
- Describe the basic individual income tax formula. What is the difference between deductions for adjusted gross income (AGI) and deductions from AGI? Which type of deduction provides the greatest benef
- The economic benefit doctrine and constructive receipt doctrine help set the lines of demarcation between what constitutes income, when it must be recognized, and who must pay taxes on it. Let's start
- When are gifts considered taxable? Briefly explain.
- Prepare the income statement for 2013.
- Which of the following is not considered a tax preparer? a. Licensed attorney b. CPA c. Enrolled agent d. Tax act software
- Excess income over and above the expected amount of after-tax operating income is called: A) Extraordinary Profit B) Remaining Profit C) Economic Profit D) Monetary Profit
- How does the Statute of Limitations affect income tax obligations?
- Explain the general types or categories of income that exist under the Code (e.q., ordinary), and how the amount of each type of income is calculated and taxed under the Code, including what rate may apply.
- What is the amount of net income (assuming no income taxes)?
- The Acts Discreditable Rule states that which of the following acts are discreditable? a. An accountant's failure to file her own tax return by April 15, even if the accountant obtains a permitted extension of time from the taxing authority. b. The late f
- Does deferred revenue need to be closed out at year end?
- What are the permanent differences between pretax financial income and taxable income? Provide examples of permanent differences.
- Name the three taxes that are associated with Form 941.
Explore our homework questions and answers library
Browse
by subject