Question

There are two methods that California allows for determining the amount of tax that is to...

There are two methods that California allows for determining the amount of tax that is to be withheld from the sales of a home. They are:

Select one:

a. Net Sales Price Method and the Net Gain on Sale Election Method

b. Total Sales Price Method and the Optional Gain on Sale Election Method

c. Total Sales Price Method and the Optional Loss on Sale Election Method

d. Net Sales Price Method and the Optional Gain on Sale Election Method

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The correct option is (b). Total Sales Price Method and the Optional Gain on Sale Election Method.

Explanation: To calculate the withholdings, the seller can use the following two methods:

Total sales price method:

Multiply the total sales price by 33.33% to calculate the withholding.

Optional Gain on Sale Election Method:

Multiply the estimated gain by the maximum tax rate of the seller to calculate the withholding.

Please take your valuable time and rate the solution as per your convenience.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Statistical analysis allows a manufacturer to evaluate its inventory costs based on two methods: LIFO (Last...
Statistical analysis allows a manufacturer to evaluate its inventory costs based on two methods: LIFO (Last In First Out) or FIFO (First In First Out). The manufacturer evaluated its finished goods inventory costs in $000 for five products with the FIFO and LIFO methods. Based on the following results, does the FIFO method result in a higher cost of inventory than the LIFO method? To analyze the inventory costs, compute the difference by the FIFO cost minus LIFO cost for...
Question 29 Determining the amount of money to borrow in order to finance a 20-year project...
Question 29 Determining the amount of money to borrow in order to finance a 20-year project is a capital structure decision. Select one: True False Question 32 Given the following information: current assets = $400; fixed assets = $400; long-term debt = $455; equity = $300; sales = $470; costs = $400; tax rate = 34%. Suppose that assets and costs maintain a constant ratio to sales. What is the total external financing needed if sales increase 25%? Assume the...
In determining whether or not a taxpayer is eligible to file for the California Joint Custody...
In determining whether or not a taxpayer is eligible to file for the California Joint Custody Head of Household Credit, which of the following must be true? Select one: a. Your child must have lived with you for more than 50 percent of the taxable year. b. If legally married, you must have lived apart from your spouse at all times during the last six months of the year. c. Only one parent can qualify for the Credit. d. All...
Home Inc. reported the following for 2020:
Home Inc. reported the following for 2020:Net sales .......................................................................................... $ 1,500,000Cost of goods sold ......................................................................... 750,000Selling and admin expenses ........................................................ 310,000Loss on disposal of equipment ..................................................... 50,000Unrealized gain (OCI) on FV-OCI investment (net of tax of $6,000) 14,000Loss on disposal of discontinued division (net of tax of $9,000) 21,000Home Inc.’s income tax rate is 30%.On Home Inc.’s multiple-step income statement for 2020, Net Income isSelect one:a.$243,000b.$360,000c.$252,000d.$369,000Clear my choice
Determining asset cost, preparing depreciation schedules (3 methods), and identifying depreciation results that meet management objectives...
Determining asset cost, preparing depreciation schedules (3 methods), and identifying depreciation results that meet management objectives On January 3, 2018, Rapid Delivery Service purchased a truck at a cost of $100,000. Before placing the truck in service, Rapid spent $3,000 painting it, $600 replacing tires, and $10,400 overhauling the engine. The truck should remain in service for five years and have a residual value of $12,000. The truck’s annual mileage is expected to be 32,000 miles in each of the...
With the following data, please determine the amount of the following items for the 2019 individual...
With the following data, please determine the amount of the following items for the 2019 individual income tax return of a taxpayer resident of Puerto Rico during the period from January to December 2019. Data for the calculations: Income from wages earned during the year 2019: Withholding vouchers 499R / 2 / W-2PR 2019 from three different employers for whom the taxpayer worked. Salaries: $ 3,669.00 Tax Withheld: $ 195.00 Salaries: $ 19,532.00 Tax Withheld: $ 130.00 Salaries: $ 8,227.00...
1) Which of the following reports is filed annually with the SEC? Select one: a. Form...
1) Which of the following reports is filed annually with the SEC? Select one: a. Form 10-K b. Press Release c. Form 8-K d. Form 10-Q 2) Marino Company has provided the following information:           Net sales, $480,000           Net income, $24,000           Interest Expense, $0           Average total assets, $200,000 What is Marino's return on assets ratio? Select one: a. 12% b. 42% c. 5% d. 240% 3) Examples of non-operating items that would appear on an income statement...
The Flounder Corporation had income from continuing operations of $13 million in 2020. During 2020, it...
The Flounder Corporation had income from continuing operations of $13 million in 2020. During 2020, it disposed of its restaurant division at a loss of $82,000 (net of tax of $38,000). Before the disposal, the division operated at a loss of $218,000 (net of tax of $135,000) in 2020. Blue Collar also had an unrealized gain-OCI of $44,000 (net of tax of $18,000) related to its FV-OCI equity investments. Flounder had 10 million common shares outstanding during 2020. Prepare a...
The two approaches to determining the credit loss expense on accounts receivable are the direct write-off...
The two approaches to determining the credit loss expense on accounts receivable are the direct write-off method and the allowance method. Indicate the method that corresponds to each description below by selecting the appropriate circle. Description Direct write-off Allowance 1. This method has the tax advantage of anticipating deductions. 2. This approach debits credit loss expense and credits accounts receivable at the time the uncollectibility of a specific account is established. 3. This method attempts to match credit loss expense...
Leon sells his interest in a passive activity for $224,000. Determine the tax effect of the...
Leon sells his interest in a passive activity for $224,000. Determine the tax effect of the sale based on each of the following independent facts: If an amount is zero, enter "0". a. Adjusted basis in this investment is $78,400. Losses from prior years that were not deductible due to the passive activity loss restrictions total $86,240. The (taxable gain/ or Deductible Loss) is $. The suspended losses at the end of the year are $. Feedback When a taxpayer...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT