3. The BIR was imposing the improperly accumulated profits tax on the accumulation ofprofits of 2009. In that year, the corporation had:P 900,00020,000Capital gain on sale of land (selling price P4M)) 400,00030,000(400,000)(240,000)( 6,000)(175,000)(260,000)Gross profit from salesDividend from domestic corporationInterest on Philippine currency bank depositBusiness expensesCapital gains tax on sale of landFinal tax from interest on bank depositIncome tax on its taxable incomeDividends declared and paidThe improperly accumulate earnings tax is:4. ABC, is a domestic corporation engaged in merchandizing business. For the calendaryear, it had a net income per books of P500, 000, after considering, among others, thefollowing:a. Dividend received from a domestic corporation P 30,000b. Provision for doubtful accounts10,00020,000c. Dividend received from a foreign corporationd. Portion of P150,000 advance rental already earned 100,000e. Recovery of receivables previously written off (included as part of net incomeabove):Allowed by the BIR as deductionDisallowed by the BIR as deductionf. Refund of taxes (included as part of net income above):Allowed by the BIR as deductionDisallowed by the BIR as deduction20,00030,00025,00015,000

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The BIR was imposing the improperly accumulated profits tax on the accumulation of profits of 2009. În that year, the corporation had: Gross profit from sales Dividend from domestic corporation Capital gain on sale of land (selling price P4M)) 400,000 Interest on Philippine currency bank deposit Business expenses Capital gains tax on sale of land Final tax from interest on bank deposit Income tax on its taxable income Dividends declared and paid P 900,000 20,000 30,000 (400,000) (240,000) ( 6,000) (175,000) (260,000) The improperly accumulate earnings tax is:

The BIR was imposing the improperly accumulated profits tax on the accumulation of profits of 2009. În that year, the corporation had: Gross profit from sales Dividend from domestic corporation Capital gain on sale of land (selling price P4M)) 400,000 Interest on Philippine currency bank deposit Business expenses Capital gains tax on sale of land Final tax from interest on bank deposit Income tax on its taxable income Dividends declared and paid P 900,000 20,000 30,000 (400,000) (240,000) ( 6,000) (175,000) (260,000) The improperly accumulate earnings tax is:

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 24CE

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FGH Corporation had the following in 2021: Sales P 3.4M; Cost of sales P 1.2M; Admin expense P 0.3M; Selling expenses P .5M; other taxable income from operations P .1M. What is deductible expense if the company uses OSD?* a. 920,000 b. 1,360,000 c. 880,000 d. 800,000 Using the problem above, what is the income tax payable?* a. 330,000 b. 375,000 c. 575,000 d. 525,000
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EL Co. reported net income for the current year 2021 at ₱560,000 before provision of income tax during the year. To compute the provision for income tax, the following data are provided: • Tax depreciation in excess of financial statement amount - ₱ 36,500 • Interest income received - ₱ 80,500 • Rent received in advance - ₱ 175,000 • Dividend income - ₱ 91,700 • Estimated tax payment in the current year - ₱ 65,000 • Provision for bad debts not yet recognized for tax purposes on the current year - ₱ 48,300 • Tax penalties due to late filing on tax return - ₱ 20,000 • Corporate tax rate – 30% Required: 11. How much is the taxable income for the year? 12. How much is the current tax expense for the year? 13. What is the total deferred tax asset to be presented in the 2021 Statement of Financial Position? 14. What is the total income tax expense for the year? 15. What is the net income after tax?
2. The following are the composition of the total gross income of a domestic corporation which is subject to MCIT in 2021: Sales (net of discouns and allowances) is 4,000,000; cost of sales is 2,400,000; dividend income is 100,000; royalty income is 250,000; and gain on sale of building is 150,000. What is the minimun corporate income tax? P35,000 P17,500 P16,000 P32,000
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EL Co. reported net income for the current year 2021 at ₱560,000 before provision of income tax during theyear. To compute the provision for income tax, the following data are provided:• Tax depreciation in excess of financial statement amount - ₱ 36,500• Interest income received - ₱ 80,500• Rent received in advance - ₱ 175,000• Dividend income - ₱ 91,700• Estimated tax payment in the current year - ₱ 65,000• Provision for bad debts not yet recognized for tax purposes on the current year - ₱ 48,300• Tax penalties due to late filing on tax return - ₱ 20,000• Corporate tax rate – 30% Required: 14. What is the total income tax expense for the year?15. What is the net income after tax?
EL Co. reported net income for the current year 2021 at ₱560,000 before provision of income tax during theyear. To compute the provision for income tax, the following data are provided:• Tax depreciation in excess of financial statement amount - ₱ 36,500• Interest income received - ₱ 80,500• Rent received in advance - ₱ 175,000• Dividend income - ₱ 91,700• Estimated tax payment in the current year - ₱ 65,000• Provision for bad debts not yet recognized for tax purposes on the current year - ₱ 48,300• Tax penalties due to late filing on tax return - ₱ 20,000• Corporate tax rate – 30% Required: How much is the current tax expense for the year?What is the total deferred tax asset to be presented in the 2021 Statement of Financial Position?
EL Co. reported net income for the current year 2021 at ₱560,000 before provision of income tax during theyear. To compute the provision for income tax, the following data are provided:• Tax depreciation in excess of financial statement amount - ₱ 36,500• Interest income received - ₱ 80,500• Rent received in advance - ₱ 175,000• Dividend income - ₱ 91,700• Estimated tax payment in the current year - ₱ 65,000• Provision for bad debts not yet recognized for tax purposes on the current year - ₱ 48,300• Tax penalties due to late filing on tax return - ₱ 20,000• Corporate tax rate – 30% Required:11. How much is the taxable income for the year?12. How much is the current tax expense for the year?13. What is the total deferred tax asset to be presented in the 2021 Statement of Financial Position?