1. Aila Corporation, a manufacturer, has a gross sales of P190,000,000 for the CY 2021, its 2nd year of operations. Its total assets amounted to P50,000,000, net of the value of the land of P6,000,000 where its manufacturing plant business operations are situated. Its cost of sales and allowable operating expenses amounted to P100,000,000 and P85,000,000 respectively. Compute the income tax due for the CY 2021.

2. Putin School is a non-profit private educational institution with an issued permit to operate from CHED. It is maintained and administered by Czar Corporation, a private domestic corporation registered under the Securities and Exchange Commission. Putin uses a fiscal year accounting ending July 31 of each year. On 31 July 2021, it recorded total gross receipts amounting to P18,000,000, of which, P10,000,000 came from education-related activities, while P8,000,000 from other unrelated business activities. Also, Putin recorded costs of service and operating expenses from related activities amounting to P2,000,000 and P1,000,000, respectively, and from unrelated business activities amounting to P3,000,000 and P2,000,000, respectively. Compute the tax due of Czar Corporation.

3. Marian Corporation, a retailer has a gross sales of P1,400,000,000 with cost of sales of P560,000,000, and allowable deductions of P150,000,000 for the calendar year 2021. Its total assets is P180,000,000 as of 31 December 2021, per Audited Financial Statements, it includes the land costing P50,000,000 and building of P25,000,000 in which the business entity is situated, with an aggregate amount of P75,000,000 as fixed assets. Assuming in the Calendar Year (CY) 2021 is the 5th year of operations of Marian Corporation, compute the tax due.

4. Mison Inc. is the only corporate shareholder of Surigao Inc. owning 60% of its outstanding voting shares. During the year, Surigao Inc. declared a P1,000,000 dividend. Compute the final income tax to be withheld by Surigao.

5. Jaime, a resident citizen, won $1,000,000 from the US Lottery. The lottery winning is*

a. Exempt from tax

b. Subject to 20% final tax

c. Subject to 10% final tax

d. Subject to regular tax

Answer rating: 100% (QA)

Aila Corporation Gross Sales P190000000 Cost of Sales P100000000 Operating Expenses P85000000 Net In... View the full answer