1. Use the following problem for the next 2 questions.  The total assets of the corporation is only 10M excluding the land on which its office is situated.

A domestic corporation shows the following summary:

Total sales	5,000,000
Cost of sales	4,500,000
Other income subject to regular income tax	200,000
Allowable deductions	675,000

1.1 How much is the income tax due for 2021?

 

1.2 Assuming the corporation used OSD, how much is the income tax due in 2021?

 

2. For the taxable year 2021, a domestic corporation reported a total gross receipts from services of P15,000,000.  It also reported direct costs and indirect expenses in the amounts of 10,000,000 and 500,000. respectively.  The total assets of the corporation is 50M excluding the land on which its office is situated.  Compute the regular corporate income tax in 2021.

Answer rating: 100% (QA)

11 To compute the income tax due for 2021 we need to calculate the taxable income first The taxable ... View the full answer