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Cabarles, Ong, and Sia (COS) is a general professional partnership (GPP) with assets valued at P25,000,000.

The partners are participating equally in the income and expenses of the GPP. The following are the data for the Partnership and the partners during the 2021 taxable year:

COS

Gross Income

Expenses

Income subject to final taxes (net)

P5,000,000

3,500,000

600,000

Charles

P3,500,000

1,200,000

200,000

Ong

P2,000,000

600,000

200,000

Sia

P2,800,000

825,000

200,000

Requirements: (6 items x 10 points)

How much is the taxable income of the Partnership? Justify your answer.
How much is each partner's distributive share in the income of the GPP?
How much is the taxable income of Cabarles?
Assume the Partnership is a general (commercial) partnership; how much are the Partnership's taxable income and the amount of applicable tax?
Using the same assumption in item #4, how much is the taxable income of Sia?
Using the same assumption in item #4, how much is the final tax of each partner from their share in

Answer rating: 100% (QA)

Lets break down the information provided and answer each of the six requirements step by step How much is the taxable income of the Partnership Justif... View the full answer