17. The Aidsiah, Inc., an insurance company, had the following data for the taxable year 2022:...

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17. The Aidsiah, Inc., an insurance company, had the following data for the taxable year 2022: Sales Cost of Goods Sold General, Selling and Administrative Expenses P5,000,000 2,000,000 500,000 Interest Income/yield from trust funds 100,000 Rental Income (net of 5% withholding tax) 190,000 Dividend Income: From domestic corporation 60,000 From foreign corporation 50,000 Winnings from charity sweepstakes 1,000,000 Capital gains from sale of domestic share of stocks not traded in the PSE, sold 75,000 directly to buyer Dividend declared and paid during the year 500,000 Retained earnings, beg. of the year (subjected to IAE tax last year) 1,000,000 Paid-up Capital, inclusive of Share Premium amounting to P300,000 800,000 Note: The board of directors approved a resolution reserving P1,500,000 of its net profit for the year for plant expansion. How much is the Improperly Accumulated Earnings Tax? a. P142,875 b. P62,875 c. P162,875 d. none 17. The Aidsiah, Inc., an insurance company, had the following data for the taxable year 2022: Sales Cost of Goods Sold General, Selling and Administrative Expenses P5,000,000 2,000,000 500,000 Interest Income/yield from trust funds 100,000 Rental Income (net of 5% withholding tax) 190,000 Dividend Income: From domestic corporation 60,000 From foreign corporation 50,000 Winnings from charity sweepstakes 1,000,000 Capital gains from sale of domestic share of stocks not traded in the PSE, sold 75,000 directly to buyer Dividend declared and paid during the year 500,000 Retained earnings, beg. of the year (subjected to IAE tax last year) 1,000,000 Paid-up Capital, inclusive of Share Premium amounting to P300,000 800,000 Note: The board of directors approved a resolution reserving P1,500,000 of its net profit for the year for plant expansion. How much is the Improperly Accumulated Earnings Tax? a. P142,875 b. P62,875 c. P162,875 d. none

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ANSWER To compute the Improperly Accumulated Earnings Tax IAE Tax we first need to determine the tax... View the full answer