P5.4. (DC, RFC and NRFC) The following data were taken from the financial statements of Chen...
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P5.4. (DC, RFC and NRFC) The following data were taken from the financial statements of Chen Corporation for 2021 taxable year: Gross sales Sales returns Cost of goods sold Operating expenses Interest income from trade receivable Interest income from BPI deposits-Phils. Interest income from BPI deposits-USA Interest income- FCDU Income from money market placement Dividend income from domestic corporation Dividend income from ABC Corporation, a resident corporation (60% of the gross income for the three-year period ending with the close of its taxable year preceding the dividend declaration was derived from the Philippines) Dividend income from nonresident corporation (the dividend received were not reinvested in the Philippines) Royalty income Gain on sale of shares of stock of domestic corp. held as capital asset thru local stock exchange; Selling Price-P500,000 Gain on sale of shares of stock of domestic corp. held as capital asset directly to a buyer Selling Price-P650,000 Gain on sale of real property in the Philippines not used in business. Cost-P4M; FMV-P8M Case A: Philippines Abroad P10,000,000 P5,000,000 200,000 CS Scanned with CamScanner 3,500,000 2,800,000 100,000 100,000 150,000 200,000 75,000 45,000 50,000 120,000 150,000 5,000,000 2,250,000 1,100,000 50,000 80,000 100,000 30,000 25,000 Assume the corporation is a domestic corporation, determine the following: 1. Tax Due on its ordinary income assuming the corporation is classified as MSME Chapter Exercises - Corporations. 2. Tax Due on its ordinary income assuming the corporation is not classified as MSME 3. Total final tax due on passive income 4. Total Capital gains tax due Case B: Assume the corporation is a resident foreign corporation, determine the following (disregard disposition of real properties in the Philippines) 5. Tax Due on its ordinary income 6. 7. Case C: Assume the corporation is a resident foreign corporation, determine the following: 8. 9. Tax Due on its ordinary income Total final tax due on passive income 10. Total Capital gains tax due Case D: Total final tax due on passive income Total Capital gains tax due 11. Determine the total final withholding tax if the corporation is a nonresident foreign corporation. Assume further that: Disregard disposition of real properties in the Philippines; and there is tax sparing with regards to the dividend income received from a DC. Case E: 12. Determine the total final withholding tax if the corporation is a nonresident foreign corporation. Assume further that: Disregard the disposition of real properties in the Philippines; and I There was NO tax sparing with regards to the dividend income received from a DC. CS Scanned with CamScanner P5.4. (DC, RFC and NRFC) The following data were taken from the financial statements of Chen Corporation for 2021 taxable year: Gross sales Sales returns Cost of goods sold Operating expenses Interest income from trade receivable Interest income from BPI deposits-Phils. Interest income from BPI deposits-USA Interest income- FCDU Income from money market placement Dividend income from domestic corporation Dividend income from ABC Corporation, a resident corporation (60% of the gross income for the three-year period ending with the close of its taxable year preceding the dividend declaration was derived from the Philippines) Dividend income from nonresident corporation (the dividend received were not reinvested in the Philippines) Royalty income Gain on sale of shares of stock of domestic corp. held as capital asset thru local stock exchange; Selling Price-P500,000 Gain on sale of shares of stock of domestic corp. held as capital asset directly to a buyer Selling Price-P650,000 Gain on sale of real property in the Philippines not used in business. Cost-P4M; FMV-P8M Case A: Philippines Abroad P10,000,000 P5,000,000 200,000 CS Scanned with CamScanner 3,500,000 2,800,000 100,000 100,000 150,000 200,000 75,000 45,000 50,000 120,000 150,000 5,000,000 2,250,000 1,100,000 50,000 80,000 100,000 30,000 25,000 Assume the corporation is a domestic corporation, determine the following: 1. Tax Due on its ordinary income assuming the corporation is classified as MSME Chapter Exercises - Corporations. 2. Tax Due on its ordinary income assuming the corporation is not classified as MSME 3. Total final tax due on passive income 4. Total Capital gains tax due Case B: Assume the corporation is a resident foreign corporation, determine the following (disregard disposition of real properties in the Philippines) 5. Tax Due on its ordinary income 6. 7. Case C: Assume the corporation is a resident foreign corporation, determine the following: 8. 9. Tax Due on its ordinary income Total final tax due on passive income 10. Total Capital gains tax due Case D: Total final tax due on passive income Total Capital gains tax due 11. Determine the total final withholding tax if the corporation is a nonresident foreign corporation. Assume further that: Disregard disposition of real properties in the Philippines; and there is tax sparing with regards to the dividend income received from a DC. Case E: 12. Determine the total final withholding tax if the corporation is a nonresident foreign corporation. Assume further that: Disregard the disposition of real properties in the Philippines; and I There was NO tax sparing with regards to the dividend income received from a DC. CS Scanned with CamScanner
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To solve the given cases well calculate the tax due on ordinary income total final tax due on passive income total capital gains tax due and total final withholding tax based on the provided data Case ... View the full answer
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Managerial Accounting Tools for Business Decision Making
ISBN: 978-1118856994
4th Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
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