Question: 1. Use this data for the succeeding 2 questions: Sales P1,100,000 Deductions: Sales allowances granted 10,000 Discounts granted to senior citizens 20,000 Operating expenses 215,000
1. Use this data for the succeeding 2 questions:
| Sales | P1,100,000 |
| Deductions: | |
| Sales allowances granted | 10,000 |
| Discounts granted to senior citizens | 20,000 |
| Operating expenses | 215,000 |
| Cost of Sales | 450,000 |
How much is the gross income?
a. 620,000
b. 640,000
c. 650,000
d. 700,000
How much is the allowable special deduction from gross income?
a. Zero
b. 10,000
c. 20,000
d. 30,000
2. Use the following data for the 3 succeeding questions:
A corporate taxpayer reported the following:
| Year A | Year B | Year C | Year D | Year E | |
| Gross income | 1,900,000 | 3,400,000 | 3,000,000 | 3,800,000 | 4,000,000 |
| Operating expenses | 2,300,000 | 3,200,000 | 3,200,000 | 3,700,000 | 3,100,000 |
| Net income (Loss) | (400,000) | 200,000 | (200,000) | 100,000 | 900,000 |
How much is the NOLCO in Year B?
a. Zero
b. 100,000
c. 200,000
d. 400,000
How much is the NOLCO in Year C?
a. Zero
b. 100,000
c. 200,000
d. 400,000
How much is the NOLCO in Year E?
a. Zero
b. 100,000
c. 200,000
d. 400,000
Step by Step Solution
3.44 Rating (151 Votes )
There are 3 Steps involved in it
The detailed answer for the above question is provided below For the first set of questions Gross In... View full answer
Get step-by-step solutions from verified subject matter experts