1. During the year, the taxpayer estimates an additional of P80,000 uncollectible accounts. From the estimated uncollectible...
Question:
1. During the year, the taxpayer estimates an additional of P80,000 uncollectible accounts. From the estimated uncollectible accounts last period, P40,000 is ascertained to be a receivable from a client who has become bankrupt. Another uncollectible account for P20,000 is ascertained to be a receivable from an employee. How much is the reportable bad debts expense for taxation purposes?
a. P140,000
b. P80,000
c. P60,000
d. P40,000
2. Mr. Lardizabal is a grocery proprietor. He shows the following figures in relation to a motor vehicle used by his family for personal purposes:
Fair value | P900,000 |
Cost | 1,500,000 |
Estimated value after useful life | 300,000 |
Estimated useful life | 10 years |
How much is the deductible depreciation expense for the current taxable year?
a. Zero
b. P90,000
c. P120,000
d. P150,000
3. ABAKA Enterprise, a taxpayer using cash basis, reports the following:
Salaries expenses incurred and paid | P150,000 |
Salaries expenses incurred but unpaid | 30,000 |
Advance advertising expense | 25,000 |
Depreciation expense | 5,000 |
Bad debts expense | 10,000 |
How much is the deductible business expense for the taxable period?
a. P190,000
b. P165,000
c. P160,000
d. P155,000
e. P150,000
Accounting Volume 1
ISBN: 978-0132690096
9th Canadian edition
Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood