A Co. and B Co. domestic corporations, both engaged in the transportation business with operations in Northern and Central Luzon formed a joint venture agreeing to distribute the net income of the joint venture equally. In a taxable year, the joint venture had a gross income of P5,000,000 and expenses of P3,500,000. –
Determine:

1. The income tax liability of the joint venture.
2. P450,000                                         C.     P1,050,000
3. P5,000,000                                      D.     P 0

2. The share of A Co. in the distributable net income of the JV:

1. P 525,000                                        C.     P 472,500
2. P 52,500                                         D.     P1,050,000

3. Final tax on the share of A Co. in the distributable net income of the JV:

1. P 52,500                                         C.     P78,750
2. P105,000                                         D.     0

Answer rating: 100% (QA)

1 Income Tax liability of Joint venture Total Gross Income P50000... View the full answer