1. Use this data for the succeeding 2 questions: Sales P1,100,000 Deductions: Sales allowances granted 10,000 Discounts...
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Question:
1. Use this data for the succeeding 2 questions:
| Sales | P1,100,000 |
| Deductions: | |
| Sales allowances granted | 10,000 |
| Discounts granted to senior citizens | 20,000 |
| Operating expenses | 215,000 |
| Cost of Sales | 450,000 |
How much is the gross income?
a. 620,000
b. 640,000
c. 650,000
d. 700,000
How much is the allowable special deduction from gross income?
a. Zero
b. 10,000
c. 20,000
d. 30,000
2. Use the following data for the 3 succeeding questions:
A corporate taxpayer reported the following:
| Year A | Year B | Year C | Year D | Year E | |
| Gross income | 1,900,000 | 3,400,000 | 3,000,000 | 3,800,000 | 4,000,000 |
| Operating expenses | 2,300,000 | 3,200,000 | 3,200,000 | 3,700,000 | 3,100,000 |
| Net income (Loss) | (400,000) | 200,000 | (200,000) | 100,000 | 900,000 |
How much is the NOLCO in Year B?
a. Zero
b. 100,000
c. 200,000
d. 400,000
How much is the NOLCO in Year C?
a. Zero
b. 100,000
c. 200,000
d. 400,000
How much is the NOLCO in Year E?
a. Zero
b. 100,000
c. 200,000
d. 400,000
Expert Answer:
The detailed answer for the above question is provided below For the first set of questions Gross In... View the full answer
Related Book For 
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
